Singapore Q1 Retrenchments Rise, With Degree Holders and Older Workers Most Affected

Retrenchments Edge Higher in Q1

Singapore's Ministry of Manpower (MOM) reported that 3,830 workers were retrenched between January and March 2026, compared with 3,690 in the previous quarter. The increase was mainly attributed to business restructuring activities rather than direct cost-cutting measures.

Manufacturing, financial services, and professional services were among the sectors that recorded the largest number of affected workers. The data reflects how companies are continuing to adjust operations in response to shifting business priorities, economic uncertainty, and technological developments.

Degree Holders Face Higher Retrenchment Rates

Among education groups, degree holders experienced the highest retrenchment incidence. The rate increased from 2.6 to 3.1 per 1,000 resident employees during the quarter.

MOM linked the trend to restructuring within professional and knowledge-intensive industries where highly skilled roles are more common. In contrast, retrenchment rates declined among workers with secondary-level education or lower, as well as those holding diplomas and professional qualifications.

Professionals, managers, executives and technicians (PMETs) continued to record the highest retrenchment incidence among occupational categories at 2.6 per 1,000 resident employees.

Older Workers Also See Increased Impact

Workers aged between 50 and 59 experienced a rise in retrenchment incidence from 2.8 to 3.1 per 1,000 resident employees.

Despite the increase, MOM stated that overall labour market conditions remain healthy. The overall retrenchment incidence stood at 1.6 per 1,000 employees, remaining within levels typically seen outside recessionary periods.

There was also improvement in re-employment outcomes. The share of residents securing employment within six months of retrenchment increased to 60.7%, up from 57.4% in the previous quarter.

AI Continues to Reshape Work

MOM's labour market report also examined the impact of artificial intelligence on employment. Previous ministry research found that 6.2% of firms using or testing AI reported workforce reductions, while 8.5% reported lower hiring activity.

A larger proportion, 18.9%, redesigned existing jobs after adopting AI technologies. According to the ministry, roughly 85% of AI users reported improvements in productivity, time efficiency, or work quality.

AI adoption remains limited overall, with 28.5% of Singapore companies currently using the technology. Adoption rates are highest in information and communications, professional services, and financial services.

Employment Growth Slows

Total employment expanded by 9,400 workers during the quarter, down from growth of 17,700 workers in the previous quarter. Resident employment growth strengthened, while growth among non-resident workers slowed.

Workers also appeared more cautious about changing jobs. The average monthly resignation rate fell to a record low of 1%, while recruitment activity remained among the lowest levels seen in recent years.

Job vacancies declined from 77,700 in December 2025 to 73,300 in March 2026. Even with the decline, there were still 1.46 vacancies available for every unemployed person.

More Firms Opt for Temporary Workforce Measures

The number of employees placed on short workweeks or temporary layoffs rose to 1,230 during the first quarter, marking the highest level since late 2021.

MOM noted that these arrangements allow employers to retain workers and preserve employment relationships during temporary business slowdowns. The increase was most noticeable in manufacturing and construction.

Adaptability Remains Key

The latest labour market data points to a workforce that remains resilient but is evolving. As industries continue to restructure and adopt new technologies, workers may need to focus more on skills development, adaptability, and career mobility to remain competitive in the job market.