Singapore employment grows in Q2 despite global uncertainty, even as retrenchments rise

Unemployment rates remained low and broadly stable, said the Manpower Ministry in an advance release of its quarterly labour force report.

SINGAPORE: Singapore's labour market continued to expand in the second quarter of 2026 despite global economic uncertainty, with total employment rising for a 19th consecutive quarter even as retrenchments increased due largely to business restructuring in some sectors.

Advance labour market figures by the Ministry of Manpower (MOM) released on Friday (Jul 31) showed total employment grew by 10,700 in Q2, up from 9,400 in the previous quarter, and broadly in line with the 10,400 increase recorded a year earlier.

Resident employment continued to grow, albeit at a slower pace than in the first quarter, driven mainly by hiring in essential and public services. Employment growth in the second quarter was led primarily by non-residents, particularly in the construction and manufacturing sectors.

Unemployment also remained low and broadly stable. In June, the overall unemployment rate stood at 2 per cent, unchanged from March. Resident unemployment held steady at 2.9 per cent, while citizen unemployment dipped to 3 per cent from 3.1 per cent in March.

Retrenchments, however, rose to 4,500 in Q2 from 3,830 in the preceding quarter. This lifted the incidence of retrenchment to 1.9 per 1,000 employees from 1.6.

"The increase was concentrated in some outward-oriented sectors, driven primarily by business restructuring," said MOM.

In June, MOM said that an ongoing restructuring in professional and knowledge-intensive sectors drove a notable shift in layoffs among degree holders in Q1, with the incidence of retrenchment rising sharply for this group.

The ministry also noted the incidence of retrenchment rose among older workers aged 50 to 59, rising from 2.8 to 3.1 per 1,000 resident employees.

But MOM said on Friday that Q2 retrenchment levels remained well below those typically seen during periods of downturn.

It cited quarterly retrenchment figures that ranged from 5,980 to 12,760 and 5,640 to 9,120 during the 2009 Global Financial Crisis and the COVID-19 pandemic respectively.

The full labour market report for Q2 will be released in mid-September.

LABOUR MARKET OUTLOOK

The ministry noted that labour demand appeared resilient, with forward-looking indicators improving in June.

The proportion of firms that had been expecting to hire rose to 43.9 per cent in June, up from 40.6 per cent in May. The share of firms that had been expecting to increase wages in the same period also climbed to 29.3 per cent from 23.7 per cent, while the proportion expecting to retrench workers fell to 2.7 per cent from 3.2 per cent.

MOM said the improvement in hiring and wage expectations, as well as lower anticipated retrenchments, suggested that labour demand remained resilient even as companies stayed cautious amid economic uncertainties and ongoing restructuring in some sectors.

"In view of the headwinds in the global economy and rapid technological change, it is important for companies and workers to proactively and continuously upgrade their competitive capabilities," it added.

The Monetary Authority of Singapore also noted in April that hiring and wage growth were likely to ease in 2026 due to the Middle East conflict.

Employers can make use of existing schemes, such as the career conversion programmes and Mid-Career Pathways Programme, to reskill and upskill their workers.

Workers are encouraged to take proactive steps to improve their employability and access better job opportunities through schemes such as Career Health SG.

They can also use career coaching and guidance services provided by the Skills and Workforce Development Agency and NTUC's Employment and Employability Institute, as well as join SkillsFuture training programmes.

Fresh graduates facing difficulties finding employment can utilise the Graduate Industry Traineeships, or GRIT, scheme as an alternative entry point into the workforce that enables them to gain industry-relevant skills and experience, MOM said.

Eligible involuntarily unemployed individuals can receive temporary financial support of up to S$6,000 (US$4,670) over six months via the SkillsFuture Jobseeker Support scheme while they are looking for jobs, the ministry added.