Majority of Retrenchments in Q1 2026 Were Due to Business Reorganisation or Restructuring: MOM

Why It Matters

The data reveal a tightly balanced labour market where firms are trimming staff through restructuring while simultaneously curbing hiring and wage growth, foreshadowing a potential slowdown in job creation if external risks intensify.

Key Takeaways

• Retrenchments held steady at 3,700, 1.5 per 1,000 workers.
• Majority of layoffs stemmed from business reorganisation, not economic downturn.
• Overall unemployment edged up to 2.1% in March 2026.
• Employment grew by 5,000 jobs, driven by transport and admin services.
• Firms planning to hire fell to 44.6%; wage‑rise intent dropped to 25.4%.

Pulse Analysis

Singapore’s labour market continues to exhibit resilience, yet the latest MOM figures expose subtle shifts beneath the surface. While the total number of retrenchments remained unchanged at 3,700, the underlying cause—predominantly corporate restructuring—suggests that firms are optimizing operations rather than reacting to a demand shock. This pattern mirrors a broader regional trend where companies streamline workforces to improve agility, especially amid lingering supply‑chain disruptions and geopolitical uncertainty.

Unemployment rates ticked up marginally to 2.1% overall, a modest rise that nonetheless reflects the tightness of the job market. Employment growth of 5,000 positions was concentrated in transportation, storage and administrative support, sectors that benefit from Singapore’s logistics hub status and expanding service economy. Conversely, non‑resident job gains slowed, indicating a cautious stance from foreign‑owned enterprises. These dynamics highlight a labour market that is expanding, but unevenly, with sector‑specific strengths offset by broader macro‑level hesitancy.

Looking ahead, firms’ hiring intentions dropped to 44.6% and plans to raise wages fell sharply to 25.4%, underscoring a more measured outlook. Companies appear to be bracing for external headwinds, ranging from global economic volatility to regional trade tensions. Policymakers may need to balance support for growth with measures that sustain wage momentum, ensuring that Singapore retains its competitive edge while protecting household purchasing power. The evolving sentiment suggests that while job creation will likely continue, it may do so at a more restrained pace.