Singapore retrenchments rose to 4,800 in Q3 2026: what does it mean for you?

Seen another farewell cake in the office pantry lately? Singapore retrenchments rose to 4,800 from July to September 2026, the fifth quarter in a row they've gone up, and resident unemployment edged up to 3.0% in September. Are layoffs hitting every kind of job? No. The rate held at 2 in every 1,000 employees, and the cuts were concentrated in information and communications, financial services and manufacturing.

What changed from July to September 2026?

Layoffs rose for the fifth quarter in a row, and unemployment crept up with them. MOM released its early figures for the quarter on 30 October.

Employers retrenched 4,800 workers from July to September, up from 4,620 in the second quarter. Does that mean a bigger share of workers lost their jobs? No. The rate held at 2 in every 1,000 employees, the same as the quarter before.

Resident unemployment, which counts citizens and permanent residents, went from 2.9% in August to 3.0% in September. For citizens alone, it rose from 3.0% to 3.1%. Unemployment across all workers stayed at 2.0%.

Jobs kept growing too. Total employment rose by 27,700 in the quarter, up from 11,400 in the second quarter. It's now grown for 20 quarters straight.

Why are layoffs rising while jobs keep growing?

The new jobs and the lost jobs are mostly in different places.

Most of the 27,700 new jobs went to non-residents in construction and manufacturing. Our guide to the Employment of Foreign Manpower Act covers the rules for hiring them. Among residents, growth came mainly from essential and public services, while sectors that depend on overseas business stayed weak.

The layoffs clustered in information and communications, financial services and manufacturing. Business restructuring drove most of them.

Two things may sit behind that restructuring: AI, since firms may need fewer people for some higher-paying professional jobs in finance and tech, and the cost-cutting that firms are still doing.

Job ads haven't dried up, though. Postings on one large job site rose 8% in the third quarter from the second. Listings for infocomm technology and for electrical and electronics roles rose by double digits. So a sector can be letting people go and hiring at the same time.

More ads don't make your search easier on their own. What counts is how closely a role matches your experience and skills.

Are employers still hiring and giving raises?

More firms planned to hire in September than in August, but fewer than in July.

In September, 42.3% of firms expected to hire in the next three months, up from 30.5% in August. The share planning pay rises went from 16.9% to 19.9%. Both are still below July's levels.

The share expecting to retrench rose too, from 2.8% to 3.1%, and MOM is watching it closely alongside the rise in actual layoffs.

Share of firms expecting each move in the next three months
Firms expecting to	August 2026	September 2026
Hire	30.5%	42.3%
Raise wages	16.9%	19.9%
Retrench	2.8%	3.1%

Real talk: how much retrenchment benefit would you get?

Your retrenchment benefit is usually 2 weeks' to 1 month's pay for each year you've worked at the company.

Say you've been at your firm for four years. The norm would put you between eight weeks' and four months' pay, but your contract or agreement decides the actual figure. Where you land in the range comes down to how the company is doing and the industry it's in.

You're eligible once you've worked at the company for at least 2 years. With less than that, your employer may still pay an ex-gratia sum as a goodwill gesture.

Your employment contract or your union's collective agreement sets the exact amount. In a unionised company whose agreement names it, the norm is 1 month's pay per year of service. If neither document names an amount, you or your union negotiate it with the employer.

Retrenched soon after a pay cut? MOM's guidance is that the benefit should be worked out on your salary before the cut.

Your notice period follows the termination terms in your contract as well. Our Singapore labour facts guide covers the rest of your pay, hours and CPF basics.

Who can get SkillsFuture Jobseeker Support?

Lost your job through no choice of your own? SkillsFuture Jobseeker Support pays up to S$6,000 over 6 months while you look for work.

Do you get the money automatically each month? No. You earn points for job-search activities such as career coaching and job applications, and each month's payout comes when you hit that month's minimum.

The income test is an average gross monthly income of S$5,000 or less over the past 12 months. Only the months you were working and earning count towards that average. It leaves out your employer's CPF share, the part our CPF contribution rates guide lists by age. It does count overtime, commissions and bonuses on top of your basic pay.

SWDA's Jobseeker Support page has the full rules and the application form. You'll need to meet all of these from the day you apply:

You're a Singapore citizen or permanent resident, aged 21 or above.
Your average gross monthly income over the past 12 months was S$5,000 or less, counting only the months you were working and earning.
You worked in Singapore for at least 6 of the past 12 months.
You lost your job involuntarily, such as through retrenchment, a business closing, or dismissal due to illness, injury or an accident.
Your home has an annual value of S$31,000 or less.
You haven't had a payout from the scheme in the past 3 years.

What other help is there if you're job hunting?

A few more schemes cover different stages of a career, from your first job to mid-career.

Mid-career Singaporeans: the SkillsFuture Level-Up Programme, with a S$4,000 SkillsFuture Credit (Mid-Career) top-up and a training allowance.
Fresh graduates: GRaduate Industry Traineeships (GRIT), open to the 2026 graduating cohort through MyCareersFuture and Careers@Gov.
Lower-wage workers: Workfare Skills Support.
Career guidance and job matching: the Skills and Workforce Development Agency (SWDA) and NTUC's Employment and Employability Institute (e2i).

What happens next?

MOM's full Labour Market Report for the third quarter comes out in mid-December 2026.

That report adds the re-entry rate, which shows how many retrenched residents found a new job and how fast.

There are two ways to read where it goes. One case for calm: 3.1% of firms planning layoffs is still low. On that view, any near-term rise in layoffs and unemployment should stay contained. The case for caution: if fewer retrenched workers find a job within 6 months, unemployment could keep creeping up for a few more quarters.

For now, open your employment contract this week and find the lines on notice and retrenchment benefit.

Frequently asked questions

How many workers were retrenched in Singapore in Q3 2026?

Employers retrenched 4,800 workers from July to September 2026, up from 4,620 in the second quarter. It's the fifth quarterly rise in a row, while the rate held at 2 in every 1,000 employees.

How much retrenchment benefit will I get in Singapore?

If you've worked at the company for at least 2 years, the usual range is 2 weeks' to 1 month's salary per year of service. Your contract or your union's collective agreement sets the exact amount, and without either it's negotiated.

Who qualifies for SkillsFuture Jobseeker Support?

You qualify if you're a Singapore citizen or permanent resident aged 21 or above and lost your job involuntarily. You also need at least 6 months of work in the past 12. Your average gross monthly pay over the months you worked must be S$5,000 or less. Your home's annual value must be S$31,000 or less, and you can't have had a payout from the scheme in the past 3 years. It pays up to S$6,000 over 6 months.

When will MOM publish the full Q3 2026 labour market report?

MOM's full Labour Market Report for the third quarter of 2026 is due in mid-December 2026. It adds the re-entry rate, which shows how many retrenched residents found a new job and how quickly.

Sources

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This is general financial information for Singapore, not personal financial advice. Figures change, so verify current rates against the official sources above before acting. See our full disclaimer.

Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).