Retrenchments in Singapore have risen sharply in the second quarter of 2026, according to the latest Labour Market Report from the Ministry of Manpower. Some 4,620 were retrenched in the latest quarter, marking the fourth consecutive quarter of rising retrenchments. Equally concerning is the evidence that we’ve reached a record-low re-entry rate of 54.9% in the first six months among retrenched residents in the past decade. This means retrenched workers are taking longer to secure new employment.
This means the first month after losing your job is more crucial than ever. What you do in the first 30 days after retrenchment can determine how quickly you bounce back financially, emotionally, and professionally.
#1 Understand Your Retrenchment Package
Your employer should provide you with a written retrenchment notice that highlights your legal entitlements following the retrenchment. This should indicate your notice period, which should be at least as long as the statutory notice periods under the Employment Act
You should receive your final salary, including the amount earned during the notice period, and any amounts for unutilised benefits or annual leave. You should also receive CPF contributions for the wages earned during the notice period.
While employers are not legally required in Singapore to provide retrenchment benefits, many also provide some form of compensation depending on factors such as length of service.
Ensure all entitlements and benefits are fair and reasonable before you sign any agreement with your employer. You may wish to obtain independent legal advice before deciding whether you want to accept the terms, as you will be legally bound to the terms once you sign the agreement. When in doubt, simply don’t sign the letter.
#2 Apply For Government Support
Introduced in 2024, the SkillsFuture Jobseeker Support scheme offers up to $6,000 over 6 months to eligible individuals who have lost their jobs and are actively job searching. Participants of this scheme will receive guided support for relevant job search activities and earn points, redeeming payouts once they reach monthly targets.
The SkillsFuture Jobseeker Support scheme is for Singapore Citizens and Permanent Residents, aged 21 years and over. Other eligibility criteria include earning $5,000 or less in the past 12 months, property with an Annual Value of $31,000 or less, and had to be employed for at least 6 months in the past 12 months.
Other forms of government support come in the form of job matching and training opportunities at the Employment and Employability Institute (e2i) and career conversion programmes organised by the newly merged Skills & Workforce Development Agency (SWDA).
#3 Reassess Your Finances
With cash flow a high priority during this period, it’s good practice to review your spending and cut discretionary expenses. Ensure you’re still budgeting for essentials like food and healthcare, but perhaps consider pausing spending on subscriptions, private hire rides and eating out at higher-end restaurants.
If you’ve been paying your monthly mortgage out of pocket, consider switching to paying it from your CPF savings for now. While using CPF funds has an opportunity cost, it is a temporary setback, and having that extra cash for daily expenses is worth it for your peace of mind.
#4 Update Your Resume And LinkedIn Profiles
This is a good opportunity to treat the retrenchment as a reset. Regardless of your work experience, it’s always a good habit to ensure your resume is up to date. The same is true for your LinkedIn profile, just in case there are headhunters looking for someone with exactly your skill set.
As part of your resume update, be sure to highlight transferable skills and any recent achievements, and consider how you can apply yourself to growth industries such as AI and technology.
Of course, don’t forget to toggle the “Open To Work” indicator on LinkedIn.
#5 Network, Network, Network
In the working world, it’s not just about who you know, but who knows you. Take the opportunity to reconnect with others within the industries of your choice who may be able to refer you to possible open roles. Attend industry events, seminars and other networking opportunities and discreetly explore potential collaborations.
No role is too insignificant, and a small freelance or contract project might be the perfect way to demonstrate your skill set. The first 30 days are prime for reestablishing visibility in your availability and what you bring to the table.
#6 Upskill Strategically
If you are above 40, this might also be a good time to utilise the SkillsFuture Credit (Mid-Career) of $4,000 under the SkillsFuture Mid-Career Training Allowance scheme. Learning new skills will improve your employability opportunities, and these courses are available on a full-time or part-time basis.
#7 Explore Alternative Income Streams
This period is also a good time to explore different roles and income streams. Consider freelancing or gig work – everything from writing and design to tuition classes, delivery or private hire driving. These part-time roles will sustain your cash flow and alleviate your financial concerns.
#8 Take Care Of Your Mental Health
Last but definitely not least, do keep your mental health at the forefront of this whole process. Retrenchment can sometimes feel like a vast unknown, and the stress and anxiety can sometimes overwhelm unexpectedly.
Establish good lifestyle routines to keep your body and mind fit during this time, and make sure you get a healthy mix of exercise, sleep, and social interaction. Remember that being retrenched never reflects your self-worth or should be seen as a failure on your part.
