How significant is the rise in retrenchments from 1Q to 2Q?

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Retrenchments Increased in the Second Quarter of 2026, Primarily Driven by Business Restructuring

Retrenchments in Singapore rose to 4,500 in the second quarter of 2026, an increase from 3,830 in the first quarter. This brought the retrenchment incidence rate to 1.9 per 1,000 employees, up from 1.6 per 1,000 in the preceding quarter. The rise was predominantly observed in outward-oriented sectors, largely attributed to business restructuring efforts.
Increase in Retrenchment Numbers and Incidence Rate

The number of employees retrenched climbed from 3,830 in the first quarter of 2026 to 4,500 in the second quarter. Consequently, the retrenchment incidence rate, which measures the number of retrenchments per 1,000 employees, saw an uptick from 1.6 to 1.9. This indicates a moderate increase in the proportion of the workforce affected by layoffs during this period.
Concentration in Outward-Oriented Sectors Due to Restructuring

The uptick in retrenchments was not uniform across the economy, but rather concentrated within several outward-oriented sectors. The primary driver behind these increases was identified as business restructuring. This suggests that companies within these specific industries were undergoing significant organisational changes, leading to workforce adjustments.
Retrenchment Levels Remain Below Economic Downturn Benchmarks

Despite the rise in the second quarter, it is noted that retrenchment figures remained well below the levels typically experienced during periods of broader economic downturn. This suggests that while some sectors faced challenges leading to job losses, the overall labour market conditions did not reflect a widespread economic contraction. The Ministry of Manpower's advance data indicated that overall unemployment rates remained low and stable at 2.0 per cent in June 2026.

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How significant is the rise in retrenchments from 1Q to 2Q?

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