Singapore Jobless Rate Hits 2-Year High

Singapore’s seasonally adjusted unemployment rate stood at 1.9% in Q2 2026, slightly below the preliminary estimate of 2.0% and the lowest since Q4 2024, amid stronger economic growth. Yet labour conditions stayed uneven. Layoffs rose to 4,620, the highest since Q4 2020, up from 3,830 in Q1, led by outward-oriented sectors including manufacturing, communications and finance, with restructuring as the main driver. The retrenchment rate increased to 2.0 per 1,000 employees from 1.6 in Q1. Total employment growth accelerated (11,400 vs 9,400 in Q1), mainly driven by non-resident hires as resident gains slowed. Re-entry outcomes dipped, with 54.9% of retrenched residents returning to work versus 60.7% prior. Job vacancies fell (68,600 vs 73,300) and 76,200 in Q2 2025, though still outnumbered unemployed, at 1.48 per job seeker. Forward indicators were mixed: more firms plan to hire, but wage-growth intentions eased, both below February levels, due to caution over hiring and wage increases.

Singapore’s seasonally adjusted unemployment rate stood at 2.0% in Q2 2026, holding steady at 2.0% for the fifth straight quarter, preliminary estimates showed. The resident unemployment rate remained unchanged at 2.9%, while the citizen unemployment rate edged lower to 3.0% from 3.1%. Retrenchments rose to 4,500 in Q2 from 3,830 workers in Q1, marking the highest number since Q4 2020, bringing the incidence of retrenchment up from 1.6 to 1.9 per 1,000 employees. The increase was concentrated in some outward-oriented sectors, such as information and communication, mainly due to business restructuring. Meanwhile, total employment increased by 10,700 in Q2 2026, up from 9,400 in Q1, marking the 19th consecutive quarter of growth since Q4 2021. Overall employment growth was largely driven by foreign employment in the construction and manufacturing sectors. Looking ahead, labour market conditions are expected to remain resilient, although firms remain cautious amid economic uncertainty.

Singapore’s seasonally adjusted unemployment rate was revised lower to 2.0% in the first quarter of 2026 from 2.1% in the preliminary estimates, holding steady at 2.0% for five consecutive quarters. The resident unemployment rate remained unchanged at 2.9%, while the citizen unemployment rate edged higher to 3.1% from 3.0%. Retrenchments remained low at 3,830 workers, a slight increase from 3,690 in Q4, equivalent to 1.5 per 1,000 employees. Meanwhile, total employment increased by 9,400 in Q1 2026, marking the 18th consecutive quarter of growth since 4Q 2021. Resident job growth was led by administrative & support services and transportation & storage, while non-resident employment growth was supported by construction and manufacturing. Looking ahead, labour market conditions are expected to remain resilient, although firms may adopt a more cautious approach in hiring and wage increases amid heightened global economic uncertainty and geopolitical tensions.