Singapore jobs growth accelerates in Q3 despite rising retrenchments

Singapore's labour market showed mixed signals in the third quarter, with total employment expanding even as worker separations reached levels not seen since 2018, Ministry of Manpower data revealed.

The advance figures highlight a paradox facing Singapore's economy: while businesses continue to add headcount overall, mounting uncertainty is prompting companies to shed workers at an accelerated pace. The rise in retrenchments reflects growing caution among employers navigating inflation, global supply chain disruptions, and weakening external demand.

The concurrent employment gains suggest that job creation in expanding sectors continues to outpace losses, though the widening gap between hiring and dismissals points to structural shifts within the economy. Some industries are shedding roles while others recruit, indicating a reshuffling of the workforce rather than broad-based labour market weakness.

Economists have warned that the uptick in retrenchments may signal deteriorating business sentiment in coming months. If the trend persists, it could dampen wage growth and consumer spending, further complicating Singapore's economic recovery prospects as the city-state heads into the final quarter of the year.