Singapore Q1 2026 Employment Growth Slows to 9,400 as Retrenchments Rise for Third Straight Quarter

Total employment in Singapore grew by 9,400 in Q1 2026, a marked deceleration from the 17,700 gain recorded in Q4 2025. The slowdown was driven mainly by weaker foreign employment growth, according to MOM’s Labour Market Report released on Jun 15.

Resident employment rose by 5,400 during the quarter, down from 8,100 in Q4 2025. Growth was concentrated in administrative and support services, transport and storage, and public administration. Non-resident employment gains were led primarily by the construction and manufacturing sectors.

Excluding foreign domestic workers, total employment stood at about 3.81 million as of March 2026, maintaining 18 consecutive quarters of growth since Q4 2021.

The number of workers retrenched rose to 3,830 in Q1 2026, up from 3,690 in Q4 2025, marking the third straight quarter of increases. Retrenchments were concentrated in external-oriented sectors such as manufacturing, reflecting the impact of global trade uncertainty and tariff-related disruptions.

Manpower Minister Tan See Leng acknowledged the challenges but struck an encouraging note. “Retrenchment is never easy, but what encourages me is that we are seeing more retrenched workers finding their way back to employment quicker,” he said.

The report showed that the majority of retrenched residents secured new employment within six months of being laid off, suggesting the labour market continued to offer re-employment opportunities despite the uptick in layoffs.

The unemployment rate remained low and stable as of March 2026. The overall unemployment rate held at 2.0 per cent, while the resident unemployment rate was 2.9 per cent and the citizen unemployment rate was 3.1 per cent. All three figures were largely unchanged from the preceding quarter.

However, analysts noted that both the hiring rate and the resignation rate declined during Q1, signalling growing caution on both sides of the labour market. Employers are becoming more selective in recruitment, while workers are less inclined to switch jobs in the current climate.

MOM cautioned that with “uncertainties and volatile markets” ahead, firms may become more cautious in hiring and raising wages, even as the labour market remains fundamentally sound.