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Resident employment growth continued to be driven mainly by essential and public services, while growth in outward-oriented sectors remained subdued.
Singapore's labour market continued to expand in the third quarter of 2026, with total employment increasing by 27,700, according to advance data released by the Ministry of Manpower (MOM) on 30 October 2026.
This was higher than the increase of 11,400 recorded in the previous quarter and 25,100 in the third quarter of 2025. Both resident and non-resident employment grew faster compared with the previous quarter.
However, employment growth remained uneven across sectors, with outward-oriented industries continuing to face subdued growth amid global economic uncertainty.
Resident employment supported by essential and public services
Resident employment growth continued to be driven mainly by essential and public services, while growth in outward-oriented sectors remained subdued.
Meanwhile, non-resident employment accounted for the majority of overall employment growth, with gains mainly coming from the construction and manufacturing sectors.
Unemployment rates edge up slightly
Singapore's overall unemployment rate remained unchanged at 2.0% in September 2026. However, the resident unemployment rate increased up to 3.0%, from 2.9% in August; while the citizen unemployment rate also increased slightly to 3.1%, compared with 3.0% in the previous month.
Retrenchments increase to 4,800 in 3Q 2026
The number of retrenchments rose to 4,800 in the third quarter of 2026, an increase from 4,620 in the second quarter. Despite the increase, the incidence of retrenchment remained unchanged at 2.0 per 1,000 employees.
Retrenchments continued to be elevated in selected outward-oriented sectors, with business reorganisation remaining the main reason for job cuts.
Hiring and wage expectations improve, but caution remains
Forward-looking indicators in September showed an improvement in employers' hiring and wage expectations.
The proportion of firms expecting to hire over the next three months increased from 30.5% in August 2026 to 42.3% in September. Meanwhile, the share of firms expecting to raise wages rose from 16.9% to 19.9% over the same period.
However, both figures remained below July's levels, suggesting that employers continued to exercise caution amid economic uncertainty.
The proportion of firms expecting to retrench workers also edged up, from 2.8% in August to 3.1% in September.
Together with the increase in actual retrenchments, this points to emerging weaknesses in parts of the labour market that warrant close monitoring.
Support available for employers and workers
Against a more uncertain global outlook and rapid technological change, MOM highlighted the need for companies to continue adapting and investing in their workforce, while workers keep their skills relevant.
Existing support measures include:
For employers: Employers can tap on the Career Conversion Programmes and Mid-Career Pathways Programme to support workers' reskilling and upskilling. The SkillsFuture Workforce Development Grant (Job Redesign+) also provides funding of up to 70% for workforce transformation and job redesign project costs, capped at S$150,000 per enterprise. Higher support levels are available for small and medium-sized enterprises (SMEs).
For workers: Singaporeans can access career guidance and job matching services through the Skills and Workforce Development Agency (SWDA) and NTUC's Employment and Employability Institute (e2i). Mid-career Singaporeans can also benefit from the SkillsFuture Level-Up Programme, which includes a S$4,000 SkillsFuture Credit (Mid-Career) top-up and a training allowance. Lower-wage workers can tap on Workfare Skills Support to strengthen their skills and improve career mobility.
For fresh graduates: The GRaduate Industry Traineeships (GRIT) programme provides fresh graduates with opportunities to gain industry-relevant skills and experience. Applications are open to the 2026 graduating cohort through MyCareersFuture and Careers@Gov.
For involuntarily unemployed individuals: The SkillsFuture Jobseeker Support scheme provides eligible individuals with temporary financial support of up to S$6,000 over six months while they actively search for a new job.
Full labour market report due in December
The full Labour Market Report Third Quarter 2026 is expected to be released in mid-December 2026.
It will provide a more comprehensive assessment of the labour market, including resident and non-resident employment breakdowns, sectoral employment data, job vacancies, labour turnover and re-entry rates among retrenched residents.
Find the full advanced release here.
ALSO READ: Singapore's economy grew 5.4% in Q3 2026, down from 6.2% in Q2
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