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Singapore employment growth picks up in Q3, but retrenchments continue to rise

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In short

Total employment expanded by 27,700 positions in the third quarter of 2026, even as retrenchments increased to 4,800 workers. While the city-state's overall unemployment rate remained steady at 2 percent, resident and citizen unemployment metrics both recorded slight increases. Forward-looking employer sentiment showed modest month-on-month improvements in hiring and wage intentions, though business confidence remains below mid-year levels.

Key points

  • Non-resident hiring in construction and manufacturing served as the primary driver for wo…: Non-resident hiring in construction and manufacturing served as the primary driver for workforce expansion.
  • Rising layoffs and retrenchment planning indicate persistent weakness within outward-orie…: Rising layoffs and retrenchment planning indicate persistent weakness within outward-oriented business sectors.
  • Involuntarily unemployed jobseekers can access up to S$6,000 in temporary state financial…: Involuntarily unemployed jobseekers can access up to S$6,000 in temporary state financial assistance.

Sources checked by our analysis pipeline: 1

Despite total employment growing in Q3, retrenchments in Singapore rose to a nearly six-year high amid economic uncertainty, according to advance labour market data by the Ministry of Manpower.

SINGAPORE: Total employment grew in the third quarter of 2026, but retrenchments also hit a nearly six-year high, according to advance labour market data released by the Ministry of Manpower (MOM) on Friday (Oct 30).

Singapore's labour market expanded for a 20th consecutive quarter in Q3, with total employment growing by 27,700 compared with the 11,400 in the preceding quarter and 25,100 during the same period last year.

Resident employment growth continued to be mainly supported by essential and public services, while growth in outward-oriented sectors remained subdued amid global economic uncertainty, MOM said.

Employment growth in the third quarter was led primarily by non-residents, particularly in the construction and manufacturing sectors.

The number of retrenchments rose to 4,800 in Q3, up from 4,620 in the previous quarter. This is the highest quarterly figure seen since Q4 2020, when 5,640 workers were retrenched.

The incidence of retrenchment, however, remained at 2…

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