By Singapore’s labour market expanded in the third quarter of 2026, with total employment growing by 27,700, up from 11,400 in Q2 2026 and 25,100 in Q3 2025, according to preliminary Ministry of Manpower data released on 30 October 2026. However, retrenchments climbed to 4,800, up from 4,620 in the previous quarter, a 3.9% increase and the highest number since late 2020, The Star reported.
The overall unemployment rate held steady at 2.0% in September 2026, but resident unemployment edged up to 3.0% from 2.9% in August, while citizen unemployment rose to 3.1% from 3.0%. The Ministry of Manpower said the increase in retrenchments, alongside higher actual job cuts, “points to emerging weaknesses in parts of the labour market that warrant close monitoring, even as the overall market continued to expand.”
Where the jobs came from and where they were lost
The headline growth figure masks a sharp divide. Non-resident employment accounted for the majority of overall employment growth, mainly in construction and manufacturing, according to the Ministry of Manpower. Resident employment growth was supported primarily by essential and public services, while outward-oriented sectors remained subdued amid global economic uncertainty.
The services sector accounted for more than 80% of retrenchments, with elevated cuts in information and communications, financial services, and manufacturing. Business reorganisation remained the main reason for job losses, suggesting structural change rather than a broad demand collapse. The incidence of retrenchment stayed unchanged at 2.0 per 1,000 employees, meaning the rise in absolute numbers partly reflects a larger employed workforce.
Maybank economist Chua Hak Bin described Singapore’s labour market as being in a “low hire, low quit” mode, which he said is “likely to persist given the broadening adoption of AI tools,” according to The Star. This framing helps explain why job postings can rise while retrenchments also increase: employers are replacing certain roles rather than expanding headcount across the board.
What the forward indicators signal for HR teams
September 2026 forward-looking data from the Ministry of Manpower showed a mixed picture. The proportion of firms expecting to hire over the next three months rose to 42.3%, up from 30.5% in August. The proportion expecting to raise wages rose to 19.9% from 16.9%. Both figures remained below July levels, suggesting caution.
At the same time, the proportion of firms expecting to retrench workers edged up to 3.1% in September from 2.8% in August. For HR and payroll leaders in Singapore, this points to a selective hiring environment. Teams should prepare for continued restructuring in outward-oriented sectors while essential services and public-sector-adjacent roles remain steadier.
Jobstreet by SEEK reported that job postings on its Singapore platform rose 8% in July to September from the previous quarter, with more openings in infocomm technology, electronics, financial services and construction. But the platform cautioned that “more advertised opportunities do not automatically mean an easier job search,” a warning that aligns with the rise in retrenchments among experienced professionals in those same sectors.
Support measures employers and workers can access
The Singapore government has several programmes tied to the current labour market conditions, as reported by Human Resources Online. For employers, Career Conversion Programmes and the Mid-Career Pathways Programme support redeployment and reskilling. The SkillsFuture Workforce Development Grant, specifically its Job Redesign+ component, funds up to 70% of project costs, capped at S$150,000 per enterprise, with higher support for SMEs.
For workers facing retrenchment, the Skills and Workforce Development Agency and NTUC’s Employment and Employability Institute offer career guidance and job matching. The SkillsFuture Level-Up Programme provides a S$4,000 SkillsFuture Credit top-up for mid-career workers, plus a training allowance. Lower-wage workers can access Workfare Skills Support.
For those involuntarily unemployed, the SkillsFuture Jobseeker Support scheme offers temporary financial support of up to S$6,000 over six months. Fresh graduates from the 2026 cohort can apply for the Graduate Industry Traineeships programme through MyCareersFuture and Careers@Gov.
What to watch when the full report lands
The full Labour Market Report for the third quarter of 2026 is expected in mid-December 2026. It will include details on how quickly retrenched workers are re-entering employment, a metric that matters more than the retrenchment count itself. A high re-entry rate within six months would suggest the labour market is absorbing displaced workers, while a falling rate would signal deeper structural problems.
| Indicator | Q3 2026 | Q2 2026 | Change |
|---|---|---|---|
| Total employment growth | 27,700 | 11,400 | +16,300 |
| Retrenchments | 4,800 | 4,620 | +180 |
| Overall unemployment rate | 2.0% | 2.0% | Unchanged |
| Resident unemployment rate | 3.0% | 2.9% | +0.1 pts |
| Citizen unemployment rate | 3.1% | 3.0% | +0.1 pts |
The Ministry of Manpower’s statement that companies “will need to continue adapting and investing in their workforce, while workers will need to keep their skills relevant against a more uncertain global outlook and rapid technological change” frames the policy direction. HR teams should expect continued emphasis on reskilling rather than protectionist measures, even as retrenchment numbers rise.
Sources: Malay Mail, Human Resources Online, The Star
Photo: Singapore skyline at dusk by Terence Ong, CC BY 2.5
