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Singapore retrenchments rise to 4,800 in the third quarter as resident unemployment edges up

Published Data as of SingaporeMacro & households
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Key points

Implications for lenders

Lenders in Singapore may need to watch borrowers employed in services, where retrenchments rose to 4,000, and in outward-oriented sectors that MOM says are growing less. With the resident unemployment rate at 3.0% and more firms expecting job cuts, underwriting can give more weight to employer and sector stability, and collections teams can prepare hardship options for borrowers who lose their jobs.

Implications

ExecutivesBanks and lenders with Singapore consumer books may want to track retrenchment-linked hardship requests by sector, especially in outward-oriented services.
InvestorsRising retrenchments with low overall unemployment point to sector-specific rather than broad household stress so far; the December final data will show whether re-employment is slowing.
OperatorsCollections teams can expect more requests linked to job loss in affected sectors and may need clear restructuring options and income re-verification steps.

Facts

The Ministry of Manpower (MOM) published its Labour Market Advance Release for the third quarter of 2026 on 30 October 2026. All figures are preliminary; the full Labour Market Report is due in mid-December 2026.

Retrenchments rose to 4,800 in the quarter, up 180 from 4,620 in Q2 2026. 1 Services accounted for 4,000 (up from 3,580 in Q2 2026). 2 The retrenchment incidence was 2.0 per 1,000 employees, unchanged from Q2 2026. 3 MOM said business reorganisation remained the main driver of retrenchments.

Total employment, excluding migrant domestic workers, grew by +27,700, up from +11,400 in Q2 2026 and +25,100 in Q3 2025. 4 Non-residents accounted for most of the increase, mainly in construction and manufacturing; resident employment growth came mainly from essential and public services, while outward-oriented sectors such as information and communications, financial services and professional services grew less.

In September 2026 the seasonally adjusted overall unemployment rate was 2.0%, unchanged from August 2026. 5 The resident rate was 3.0% (up from 2.9% in August 2026) 6 and the citizen rate 3.1% (up from 3.0% in August 2026). 7

In MOM's survey of employers, 3.1% of firms expected to retrench in the next three months, up from 2.8% in August 2026. 8 The share expecting to hire rose to 42.3% (up from 30.5% in August 2026), 9 though MOM said hiring and wage expectations remained below July levels. MOM said the rise in expected and actual retrenchments indicates weaknesses in the labour market that should be monitored.

Analysis

Quarterly retrenchments have risen in each of the last five quarters on MOM's figures. Quarterly retrenchments stayed between 3,540–3,690 throughout 2025 10 and were 3,050 in the third quarter of 2024; 11 the advance estimate of 4,800 is the highest since late 2020, according to AsiaOne. The advance figure is not yet comparable with the final quarterly series and may be revised in December.

The pattern is one of job losses concentrated in some sectors while overall hiring continues: employment grew faster than in the previous quarter and the overall unemployment rate stayed at 2.0%. For household credit the resident and citizen rates matter more, because they cover most local borrowers; both rose by a tenth of a percentage point in September. Hong Kong's seasonally adjusted unemployment rate was 3.9% for July–September 2026, 12 so Singapore's labour market remains tighter, although the two rates are compiled on different bases.

Counterpoints and uncertainties

The figures are preliminary and MOM's full report in mid-December may revise them. Higher hiring intentions in September and continued employment growth could absorb retrenched workers quickly, which would limit any effect on loan repayments. The release does not give retrenchments by income level or the share of retrenched workers with consumer debt.

Key figures

  1. Retrenchments: 4,800 (up 180 from 4,620 in Q2 2026)
    Preliminary figure from MOM's advance release; the full Labour Market Report (expected mid-December 2026) may revise it.
    . Total retrenchments in the quarter, rounded to the nearest ten. Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  2. Retrenchments in services: 4,000 (up from 3,580 in Q2 2026)
    Preliminary figure from MOM's Labour Market Advance Release; the full Labour Market Report (expected mid-December 2026) may revise it.
    . Retrenchments in the services sector in the quarter, rounded (MOM, preliminary). Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  3. Retrenchment incidence: 2.0 per 1,000 employees (unchanged from Q2 2026)
    Preliminary figure from MOM's Labour Market Advance Release; the full Labour Market Report (expected mid-December 2026) may revise it.
    . Retrenchments per 1,000 employees in the quarter (MOM, preliminary). Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  4. Total employment change: +27,700 (up from +11,400 in Q2 2026 and +25,100 in Q3 2025)
    Preliminary figure from MOM's Labour Market Advance Release; the full Labour Market Report (expected mid-December 2026) may revise it.
    . Quarterly change in total employment excluding migrant domestic workers (MOM, preliminary). Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  5. Unemployment rate, overall: 2.0% (unchanged from August 2026)
    Preliminary figure from MOM's Labour Market Advance Release; the full Labour Market Report (expected mid-December 2026) may revise it.
    . Seasonally adjusted unemployment rate, overall, September 2026 (MOM, preliminary). Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  6. Unemployment rate, residents: 3.0% (up from 2.9% in August 2026)
    Preliminary figure from MOM's Labour Market Advance Release; the full Labour Market Report (expected mid-December 2026) may revise it.
    . Seasonally adjusted resident unemployment rate, September 2026 (MOM, preliminary). Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  7. Unemployment rate, citizens: 3.1% (up from 3.0% in August 2026)
    Preliminary figure from MOM's Labour Market Advance Release; the full Labour Market Report (expected mid-December 2026) may revise it.
    . Seasonally adjusted citizen unemployment rate, September 2026 (MOM, preliminary). Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  8. Firms expecting to retrench in the next three months: 3.1% (up from 2.8% in August 2026). Share of firms surveyed by MOM expecting to retrench in the next three months, September 2026. Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  9. Firms expecting to hire in the next three months: 42.3% (up from 30.5% in August 2026). Share of firms surveyed by MOM expecting to hire in the next three months, September 2026. Singapore labour market (MOM). Basis date: 30 Sep 2026. Source: NTUC, citing MOM Labour Market Advance Release 3Q 2026 (30 Oct 2026)
  10. Quarterly retrenchments range, 2025: 3,540–3,690. Lowest and highest quarterly retrenchments in 2025. Singapore labour market (MOM). Basis date: 31 Dec 2025. Source: MOM: Retrenchment Summary Table
  11. Retrenchments, Q3 2024: 3,050. Total retrenchments in the quarter. Singapore labour market (MOM). Basis date: 30 Sep 2024. Source: MOM: Retrenchment Summary Table
  12. Unemployment rate (seasonally adjusted, 3-month): 3.9% (up from 3.8% in June–August)
    Provisional figures for the three months July–September 2026, released by C&SD on 22 October 2026.
    . Seasonally adjusted unemployment rate for July–September 2026, C&SD. Hong Kong labour force. Basis date: 30 Sep 2026. Source: Dimsum Daily (2026-10-22): Hong Kong jobless rate edges up to 3.9% (citing C&SD provisional figures)

Sources

  1. MOM (2026-10-30): Labour Market Advance Release 3Q 2026primary
  2. NTUC (2026-10-30): 3Q 2026 Labour Market Advance Release: Singapore employment growth accelerates as retrenchments edge up
  3. AsiaOne (2026-10-30): Resident and citizen unemployment rates up slightly: MOM
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A Japanese version of this article is available: 日本語版

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