According to the Ministry of Manpower (MOM) in Singapore, the number of layoffs nationwide in the second quarter reached 4,620, a month-on-month increase of about 20.6% from 3,830 in the first quarter, marking the highest level since Q4 2020 (5,640) and a new high since the peak of the pandemic.

The increase in layoffs is mainly concentrated in export-oriented industries, including manufacturing, information and communication, and financial services. The Ministry attributed the primary cause to business restructuring and structural adjustments by companies, rather than an overall economic recession; the layoff rate rose from 1.6‰ in the previous quarter to 1.9‰.

In contrast to the rise in layoffs, Singapore's overall job market continues to expand—total employment increased by 11,400 in the second quarter, achieving positive growth for 19 consecutive quarters, while local resident employment growth slowed to 2,200, with the unemployment rate remaining stable at 2%.

Indicators for re-employment in the labor market have also weakened— the re-employment rate within six months after layoffs dropped to 54.9%, a significant decline from 60.7% in the previous quarter, while the 12-month re-employment rate remained at 69.8%; this data indicates that even though overall job supply is still growing, the time it takes for the unemployed to find new jobs is lengthening.

The Ministry's July business expectations survey shows a "positive but cautious" outlook—more companies indicated a willingness to hire in the next three months, but the proportion of companies planning to raise salaries has slightly decreased; job vacancies in the financial services and information and communication sectors have also shown a decline, indicating that the structural cooling of the labor market is not limited to layoff data alone.

From a market mechanism perspective, the three sectors most affected by layoffs—manufacturing, information communication, and financial services—are precisely the industries most sensitive to external demand and global capital flows in Singapore. This reflects that global trade frictions, AI-driven organizational restructuring, and changes in the interest rate environment are first being transmitted to Singapore's local job market through these export-oriented sectors, while employment of non-local workers in domestic demand-driven industries like construction continues to grow, highlighting a divergence in economic internal and external dynamics.

Source: Public Information