When we hear about retrenchments, we usually think of businesses struggling during an economic downturn. For example, during the 2020 COVID-19 pandemic, the reasons were clear. Borders closed, travel stopped, and many businesses could no longer operate normally.
However, the latest retrenchment figures come against a different backdrop. Singapore’s economy grew by 5.4% year on year in 3Q2026, based on advance estimates. Yet MOM’s Labour Market Advance Release estimated that 4,800 workers were retrenched during the quarter, up from 4,620 in 2Q2026.
This would clearly be a concern for any worker. If retrenchments are rising while the economy is growing strongly and businesses are operating as usual, how much protection does a strong economy really offer our jobs? And how much worse could things get if a crisis does hit?
Retrenchments Have Reached Their Highest Quarterly Level Since 2020
An estimated 4,800 workers were retrenched in 3Q2026, the highest quarterly count since 4Q2020, when 5,640 workers were retrenched. Adding the first three quarters gives us about 13,250 retrenchments in 2026 so far.
| Year | Workers Retrenched From January To September |
|---|---|
| 2016 | 13,730 |
| 2017 | 11,040 |
| 2018 | 8,210 |
| 2019 | 8,020 |
| 2020 | 20,470 |
| 2021 | 6,510 |
| 2022 | 3,450 |
| 2023 | 11,130 |
| 2024 | 9,350 |
| 2025 | 10,800 |
| 2026 | 13,250 |
Source: MOM
Only two years over the past 10 years recorded more retrenchments over the same period: 2016, at 13,730, and 2020, at 20,470. In 2016, GDP growth was extremely low, and Singapore almost slipped into a recession. In 2020, the world experienced COVID-19.
The Economy Is Growing, But Some Jobs Are Disappearing
While retrenchments remain below pandemic levels, we should also consider the economic conditions driving them.
In October, MAS described economic activity in Singapore’s major trading partners as robust, supported by global AI-related investment. This means retrenchments are rising even without the widespread shutdowns that affected businesses during the pandemic or a recession.
MOM identified business reorganisation as the main driver of retrenchments. This can involve combining teams, centralising functions or changing the skills an organisation needs. Even a growing business may decide it needs fewer employees if it can harness AI.
Strong stock market performance also offers little assurance about our jobs. Global stock markets have been performing well, yet retrenchments in Singapore and overseas are still happening.
We Should Prepare Before The Economy Turns
For workers, the concern is that an industry can continue growing while demand for certain roles within it declines. Our employer may still be hiring, but the skills and experience it needs may differ from what we currently offer.
Keeping our skills relevant starts with understanding how our work is changing and where we can contribute as our organisation evolves. At the same time, building an emergency fund and keeping our financial commitments manageable gives us more time to find a suitable role if we lose our income. We should make these preparations while we are still employed, rather than wait for an economic downturn to remind us that our jobs may be at risk.
Read Also: Retrenchment vs Being Fired vs Asked to Resign: What’s The Difference In Singapore?
