MOM Reports Increase in Retrenchments for Q3, Yet Employment Outlook for Residents Remains “Healthy”

Despite a rise in retrenchments in Singapore due to a slowing global economy, the employment landscape remains positive for local residents, according to the Ministry of Manpower (MOM). MOM’s latest data, released on Oct 26, shows that retrenchments rose to 4,100 in Q3 2023 from 3,200 in the previous quarter, with most layoffs occurring in the wholesale trade sector.

At the same time, total employment has grown for an eighth consecutive quarter, adding 24,000 new positions, particularly in high-paying sectors like financial and professional services. However, due to the weaker economic outlook, hiring intentions have dipped, with only 42.8% of firms indicating plans to hire within the next three months, down from 58.2% in the previous quarter. Similarly, fewer firms plan to raise wages, dropping from 28% to 18%.

To support workers facing layoffs, MOM encourages both employers and employees to leverage available programs for upskilling and business transformation. As Prime Minister Lee Hsien Loong mentioned in his recent National Day Rally, temporary financial assistance will soon be available to retrenched workers to help them focus on skill development and securing long-term employment. More details about this support scheme will be announced later this year.