Total employment grew by 10,700 for a 19th straight quarter, while layoffs climbed to 4,500, the highest since Q4 2020, even as hiring and wage expectations improved.
Singapore’s labor market showed mixed signals in the second quarter of 2026 as unemployment stayed low and total employment kept rising, even while retrenchments climbed to their highest level since Q4 2020. The overall unemployment rate held at 2.0% in June, with the resident rate unchanged at 2.9% and the citizen rate easing to 3.0% from 3.1%. Retrenchments rose 17.5% to 4,500 from 3,830 in the first quarter, lifting the incidence of layoffs to 1.9 per 1,000 employees from 1.6, with the increase linked mainly to business restructuring in outward-oriented sectors including information and communications and manufacturing. Total employment grew by 10,700, up from 9,400 in Q1 and broadly in line with the 10,400 increase a year earlier, extending job growth to a 19th consecutive quarter. Non-resident hiring led gains in construction and manufacturing, while resident employment also increased, mainly in essential and public services, though at a slower pace than in the previous quarter. Forward-looking indicators improved, with a larger share of firms planning to hire and raise wages and fewer expecting layoffs, although the Ministry of Manpower said these readings remained below pre-crisis February levels and signaled continued caution in hiring and pay decisions.