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TL;DR
Singapore reported 4,800 retrenchments in the third quarter of 2026, the highest quarterly total since late 2020. The preliminary figures do not attribute the rise to AI: the Ministry of Manpower says business reorganisation was the main driver, while separate data show graduates are finding permanent jobs less often.
Singapore recorded 4,800 retrenchments in the third quarter of 2026, the highest quarterly total since late 2020, according to preliminary figures released by the Ministry of Manpower on October 30. The rise comes amid wider concern that artificial intelligence could reduce hiring, but the ministry identified business reorganisation—not AI—as the main reason for layoffs, and the available data do not show large-scale AI-driven job losses.
The quarterly total rose from 4,620 in the second quarter and 3,670 in the third quarter of 2025. The last higher count was 5,640 in the fourth quarter of 2020, during the pandemic. The retrenchment rate, which measures layoffs per 1,000 employees, remained at 2.0.
About 4,000 of the third-quarter retrenchments were in services, with 700 in manufacturing and 100 in construction. The Ministry of Manpower said layoffs remained elevated in selected outward-oriented sectors, including information and communications, financial services and manufacturing. It named business reorganisation as the main driver.
The figures do not show an economy-wide contraction in employment. Total employment grew by 27,700 during the quarter, more than the 11,400 increase in the previous quarter. Singapore’s overall unemployment rate was 2.0% in September. The ministry cautioned, however, that higher layoffs and a rise in employers’ retrenchment plans point to weaknesses in parts of the labour market that warrant monitoring.
Infographic 01 · The numbers
Singapore's layoffs climb to a near six-year high
Retrenchments have risen in each of the last five quarters while employment kept growing. The official reason is restructuring.
Retrenchments per quarter
Number of employees laid off · selected quarters · rounded to the nearest 10
3Q 2026 by sector
Main driver: business reorganisation · elevated in information and communications, financial services, manufacturing
Mixed signals for the next quarter
Share of firms, August → September 2026
- Expect to hire in the next 3 months30.5% → 42.3%
- Expect to raise wages16.9% → 19.9%
- Expect to retrench2.8% → 3.1%MOM: “emerging weaknesses … that warrant close monitoring”
The economy grew 5.9% year on year in 2Q 2026 (MTI). Rising layoffs in a growing economy point to restructuring rather than a collapse in demand. The 3Q figures are preliminary; the full report follows in mid-December 2026.
Sources: MOM Labour Market Advance Release 3Q 2026, 30 Oct 2026; MOM Labour Market Report 2Q 2026, 21 Sep 2026; MOM Labour Market Report 1Q 2021 (4Q 2020 figure).
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Layoffs Rise as Hiring Holds Up
The combination of more layoffs and employment growth points to uneven changes in the labour market, rather than a simple economy-wide loss of jobs. Some employers are cutting positions as they reorganise, even as other firms continue to hire. That distinction matters when interpreting claims that the increase is evidence of AI replacing workers.
For workers, the pressure may show up in hiring opportunities as well as dismissals. At Singapore’s six public universities, 83.4% of job-seeking graduates from the class of 2025 had found work within six months, down from 87.1% for the previous cohort. The share in full-time permanent jobs fell from 79.4% to 74.4%. Arts, design and media graduates had a reported employment rate of 50%.
Those graduate figures describe a slower entry into work, not evidence that young people account for most retrenchments. The distinction affects how policymakers and employers should respond: displaced experienced workers and new graduates facing fewer stable openings may need different forms of support.
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What the Data Says About AI
Singapore’s headline retrenchment count does not include a category identifying layoffs caused by artificial intelligence. The ministry’s stated explanation is business reorganisation, so the quarterly total cannot by itself establish how much AI contributed to job cuts. In an April survey, 6.2% of firms that had adopted AI said they had reduced headcount after adoption. That survey finding is limited to the firms asked and does not establish the cause of the national layoff increase.
The latest available detailed occupational breakdown in the supplied material is for the second quarter. Of 4,620 retrenched workers then, 3,950 were professionals, managers, executives or technicians. Workers under 30 had the lowest layoff rate of any age group. These earlier figures suggest that the recent job losses have fallen heavily on experienced professionals, but they do not provide a full occupational breakdown for the third quarter.
Regional evidence also calls for care in interpreting the trend. The International Labour Organization estimates that about 80 million workers in Southeast Asia are in jobs with some exposure to generative AI, but says it sees no evidence so far of large-scale job losses. It has reported faster declines in youth employment in highly exposed jobs than in overall employment in the Philippines and Thailand. Exposure to AI, however, does not mean a job has been eliminated by it.
AI’s Role Remains Unmeasured
The preliminary third-quarter release does not include the full breakdown by occupation, reason for retrenchment or workers’ return-to-employment outcomes. The Ministry of Manpower is scheduled to publish the full report in mid-December. Until then, the second-quarter occupational data provide context but cannot show who was laid off in the latest quarter.
It is also not possible to isolate AI’s contribution to the 4,800 retrenchments from the published headline figures. The ministry’s reported main driver is business reorganisation, but the available material does not quantify how many reorganisations involved AI or whether technology was a factor in individual cases. Nor does the university graduate survey establish that AI caused the decline in job outcomes.
Full Labour Report Due in December
The next key data release is the Ministry of Manpower’s full third-quarter labour-market report, expected in mid-December. It should provide further detail on sectors, reasons for retrenchment and workers’ re-entry into employment, allowing a clearer comparison with the preliminary count.
In the meantime, the ministry will continue tracking layoffs, unemployment and employers’ hiring and retrenchment plans. Singapore’s third-quarter data show both stronger employment growth and elevated job cuts; whether that pattern persists, and what role AI plays in it, remains to be seen.
Key Questions
How many people were retrenched in Singapore in the third quarter of 2026?
The preliminary count was 4,800, up from 4,620 in the second quarter. It was Singapore’s highest quarterly total since the fourth quarter of 2020.
Did Singapore say AI caused the rise in layoffs?
No. The Ministry of Manpower said business reorganisation was the main driver. The published figures do not isolate AI-related layoffs.
Are young workers the main group being laid off?
The available second-quarter data do not support that conclusion. They show that professionals, managers, executives and technicians made up about 85% of those retrenched, while workers under 30 had the lowest layoff rate of any age group. A comparable third-quarter breakdown is not yet available.
Are graduates finding jobs more easily?
No. Among job-seeking graduates from Singapore’s six public universities, 83.4% of the 2025 cohort had found work within six months, compared with 87.1% of the previous cohort. The share in full-time permanent jobs also fell, though these figures do not show that AI caused the change.
When will more detailed layoff data be available?
The Ministry of Manpower’s full third-quarter labour-market report, including additional detail, is expected in mid-December 2026.
Source: ThorstenMeyerAI.com
