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

Singapore's labor market demonstrated continued expansion in the second quarter of 2026, with total employment growing for the 19th consecutive quarter. This growth occurred despite global economic uncertainties. The Ministry of Manpower (MOM) reported an increase of 10,700 jobs, slightly up from the previous quarter and consistent with the same period a year prior.

Resident employment saw a slower pace of growth, mainly driven by hiring in essential and public services. However, the overall employment increase was largely fueled by non-residents, particularly in the construction and manufacturing sectors. While employment grew, retrenchments also increased to 4,500 in Q2, up from 3,830 in the preceding quarter. The MOM attributed this rise primarily to business restructuring within certain outward-oriented sectors.

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

Despite the uptick in retrenchments, unemployment rates remained low and stable. In June, the overall unemployment rate was 2 percent, with resident unemployment at 2.9 percent and citizen unemployment dipping slightly to 3 percent. The MOM noted that Q2 retrenchment levels are still significantly below those seen during major economic downturns like the 2009 Global Financial Crisis and the COVID-19 pandemic.

Looking ahead, labor demand appears resilient. Forward-looking indicators improved in June, with a higher proportion of firms expecting to hire and increase wages. Conversely, the share of companies anticipating layoffs decreased. The MOM advised companies and workers to proactively upgrade their capabilities in response to global economic headwinds and rapid technological change, suggesting that labor demand remains robust even as companies exercise caution amid ongoing restructuring.

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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.