For many Singapore workers, the fear is not just about losing their jobs. It is about what happens after that.
Our mortgage still needs to be paid and our children’s expenses continue. Groceries, insurance premiums, utilities and transport costs do not stop. That is why job insecurity feels so personal. Even when the labour market looks stable overall, one retrenchment can throw a household’s finances off course.
In Singapore, this anxiety is increasingly tied to a bigger question: are we competing not just with one another, but with workers from around the world?
The Labour Market Looks Stable, But We Still Feel Exposed
Singapore’s labour market has remained relatively resilient.
According to MOM’s Labour Market Report for 4Q 2025, unemployment rates stayed low and stable in 2025, while total employment grew over the year. However, retrenchments rose to 14,490 for the full year, up from 13,020 in 2024. MOM also reported that the resident re-entry rate into employment within six months of retrenchment was 57.4% in 4Q 2025.
Singapore may not be facing a broad jobs crisis. But many of us can still feel vulnerable, especially in sectors affected by restructuring, outsourcing, automation or weaker business demand.
MOM’s advance release for 1Q 2026 also showed retrenchments remained low by historical standards at 3,700 for the quarter. Most retrenchments were due to business reorganisation or restructuring.
Why Foreign Manpower Remains A Sensitive Issue
Foreign manpower has long been a sensitive issue in Singapore because it affects jobs, wages, housing, infrastructure and national identity.
Singapore’s total population reached 6.11 million as of June 2025, up 1.2% from a year earlier, mainly due to growth in the non-resident population. Reuters also reported that the number of foreign workers rose to 1.91 million, with growth driven largely by construction, marine shipyard and domestic work.
Not every foreign worker is competing directly with local PMETs for the same jobs. Many Work Permit holders work in sectors such as construction, marine shipyard, process industries and domestic work. MOM’s workforce data also shows that Work Permit holders make up the largest share of Singapore’s foreign workforce, while Employment Pass and S Pass holders form a smaller proportion.
Still, the perception of competition is real.
For many local workers, especially PMETs, the concern is usually not whether Singapore needs foreign manpower. We know we do. The bigger concern is whether the system feels fair.
Are companies hiring fairly? Are Singaporeans getting meaningful career progression, or are wages being suppressed? Are local workers being replaced rather than complemented?
These questions shape how secure we feel about our income and employability.
Today, we may be competing with a regional team based elsewhere, a remote worker who can do the same job at lower cost, an outsourced vendor, software, AI tools, or a company restructure that shifts work to a lower-cost hub.
This is why the issue goes beyond a simple “locals versus foreigners” debate.
For many of us, the bigger challenge is that jobs have become more mobile. Work that once required someone in a Singapore office can now be done from Manila, Kuala Lumpur, Bengaluru, Ho Chi Minh City or anywhere with a laptop and internet connection.
Why Job Loss Feels Scarier In A High-Cost City
In Singapore, the margin for error can be thin.
A retrenchment can force us to dip into savings, delay CPF top-ups, surrender insurance policies, take on debt, or accept a lower-paying job simply to maintain cash flow.
For older workers, the impact can be more severe. Someone who retrenched in their 50s may find it harder to return to a similarly paying role. Even if they do find work, they may have to accept lower pay, contract work or a less senior position.
What We Can Do To Protect Ourselves
While we cannot control every hiring decision, we can work to reduce the financial damage if something goes wrong.
For some of us, a three-month emergency fund may not be enough. Those in volatile sectors, single-income households, older workers or people with dependants may need six to 12 months of essential expenses instead. This should cover non-negotiable costs such as mortgage payments, utilities, food, insurance and basic family expenses.
We should also avoid building our lifestyle around peak income. One common mistake during good years is assuming bonuses, commissions or high salaries will continue indefinitely. We should be careful about taking on large fixed commitments, such as a bigger home loan or car loan, based on our best income year.
A useful stress test is this: can our household still cope if income falls by 50%?
Upskilling should also be practical. It should not simply be about collecting certificates. We should ask whether a skill helps generate revenue, reduce costs, improve productivity, or make us harder to replace. Skills should also be transferable across companies or industries. A skill that only matters within one employer may not offer much protection during a retrenchment.
Networking matters too. Many of us only start networking after being retrenched, but by then it may already be too late. Staying in touch with former colleagues, recruiters, industry peers and clients while still employed can make a major difference if a job search suddenly becomes urgent.
We may not be able to control every restructure, hiring decision or economic cycle. But we can control how prepared we are. By keeping our finances resilient, our skills relevant and our networks active, we give ourselves a better chance of protecting our income, supporting our families and navigating a more competitive job market with greater confidence.
Read Also: High Pay But At What Cost? Why Singapore Workers Are Among Asia’s Most Unhappy
