Layoffs Surge in Singapore, University Graduates Hardest Hit

The wave of retrenchments in Singapore reportedly rose again in the first quarter of 2026. Amid an ongoing trend of corporate restructuring, workers with university degrees have become the group most affected by this efficiency drive.

According to a report by Channel News Asia, the Ministry of Manpower (MOM) recorded that the number of layoffs in the Lion City climbed to 3,830 cases in Q1 2026. This figure represents an increase compared to the 3,690 cases recorded in Q4 2025.

Notably, MOM asserted that this surge was not triggered by extreme cost-cutting measures, but rather by organisational reorganisation and corporate restructuring. The sectors shedding the most employees were externally oriented industries, such as manufacturing, financial services, and professional services.

Nevertheless, local labour authorities stated that the situation has not yet reached alarming levels. Overall, the retrenchment rate remains at 1.6 per 1,000 workers, a ratio considered normal and not yet indicative of an economic recession.

Based on the latest statistics, the retrenchment rate among university graduates jumped from 2.6 to 3.1 per 1,000 resident workers. The dismissal rate in this group was recorded as the highest compared to other educational attainment groups. MOM explained that current restructuring activities are concentrated in knowledge-based industries and professional sectors, which are predominantly staffed by highly educated workers.

The opposite trend occurred for workers with lower educational qualifications. The retrenchment rate for secondary school graduates and below fell to 0.7 per 1,000 workers. Meanwhile, the group of workers with diplomas or professional certifications also dropped to 1.1 per 1,000 workers.

Another demographic segment that was hit was senior workers aged 50 to 59. This age group experienced an increase in the retrenchment rate from 2.8 to 3.1 per 1,000 resident workers in the first quarter of this year. For the Professional, Manager, Executive, and Technician (PMET) job category, the retrenchment rate remained stagnant at the highest level of 2.6 per 1,000 workers, unchanged from the previous quarter.

Despite the rising number of layoffs, Singapore’s labour market is considered to have fairly strong resilience. This is reflected in the re-entry rate data. The proportion of retrenched workers who managed to find new employment within six months of being laid off surged from 57.4% to 60.7%. This improvement in job absorption was significant for the PMET group, university graduates, and young workers under 30.

Singapore’s Minister for Manpower, Tan See Leng, acknowledged that facing retrenchment is always a difficult period for workers. However, he welcomed the fact that retrenched workers are now able to return to the job market relatively faster. “Retrenchments are never easy. But encouragingly, we are seeing more retrenched workers able to bounce back into jobs more quickly,” Tan said.

In this quarterly report, MOM for the first time specifically reviewed the impact of Artificial Intelligence (AI) adoption on the labour market landscape. Referring to data released last April, the majority of companies in Singapore did not directly dismiss their employees due to technology. Only about 6.2% of companies that implemented or trialled AI reported a reduction in headcount, while 8.5% of companies admitted to reducing new hiring activities.

Instead of conducting mass layoffs, corporations preferred the option of redesigning their job scopes. A total of 18.9% of corporate respondents stated they had changed employee job functions and descriptions as a result of implementing this smart technology. Minister Tan See Leng emphasised that the presence of AI technology has so far acted as a transformer, not an eliminator, of jobs. “AI will indeed change the way we work. But so far, what we are seeing is that AI is reshaping jobs more than replacing workers,” he stressed. Furthermore, about 85% of companies using AI reported positive impacts in the form of increased productivity, time efficiency, and significantly better quality of work output. Facing this era of technological disruption, the Singapore government has confirmed it will continue to boost upskilling programmes for the local workforce to remain relevant to future industry needs.