Singapore's labour market continued to expand in the second quarter of 2026 despite global economic uncertainty. Total employment rose by 10,700 in Q2, up from 9,400 in the previous quarter, and was broadly in line with the 10,400 increase recorded a year earlier, according to advance labour market figures released by the Ministry of Manpower (MOM) on Friday, July 31.

Resident employment grew at a slower pace than in Q1, mainly driven by hiring in essential and public services. Employment growth was primarily led by non-residents, especially in the construction and manufacturing sectors.

Unemployment rates remained low and broadly stable, with the overall unemployment rate at 2% in June, unchanged from March. Resident unemployment held steady at 2.9%, while citizen unemployment dipped slightly to 3% from 3.1% in March.

MOM noted that ongoing restructuring in professional and knowledge-intensive sectors caused a notable rise in layoffs among degree holders in Q1, with retrenchments increasing sharply for this group. Quarterly retrenchment figures during the 2009 Global Financial Crisis and the COVID-19 pandemic ranged from 5,980 to 12,760 and 5,640 to 9,120 respectively.

The increase in retrenchments was concentrated in some outward-oriented sectors and driven primarily by business restructuring. Despite this, MOM said improvements in hiring and wage expectations, along with lower anticipated retrenchments, indicate resilient labour demand as companies remain cautious amid economic uncertainties.

To support fresh graduates facing employment challenges, MOM highlighted the Graduate Industry Traineeships (GRIT) scheme as an alternative pathway to gain industry-relevant skills and experience.

In view of global economic headwinds and rapid technological change, it is important for companies and workers to proactively and continuously upgrade their competitive capabilities.

Sources