Graduate job hunt lengthens, retrenched workers' re-entry rate falls: Jasmin Lau
Acting Minister for Manpower Jasmin Lau told parliament on 6 Oct that fresh graduates are taking longer to secure full-time jobs, while the six-month re-entry rate for retrenched residents dropped to 54.9% in Q2 2026. Degree holders now account for 66.4% of retrenched residents, up from 51% in 2021,
Fresh graduates are taking longer to secure full-time jobs, and retrenched workers are also finding it harder to land new roles, reflecting softer hiring conditions in Singapore's labour market, Acting Minister for Manpower Jasmin Lau said in parliament on Tuesday (6 Oct).
Retrenchments rose to 4,620 in the second quarter of the year, the highest level since late 2020. The six-month re-entry rate for retrenched residents fell to 54.9 per cent in Q2 2026, down from 60.7 per cent in the first three months of the year. Ms Lau noted that while seasonal hiring patterns partly explain the decline, the rate is lower than in previous years and shows a broader downtrend.
The decline in re-entry was most pronounced among clerical, sales and service workers, tertiary-educated residents and those aged below 30. It was observed across industries, with larger decreases among those previously employed in manufacturing, information and communications, financial services and professional services. Degree holders remained the largest group among retrenched residents, their share rising from 51 per cent in 2021 to 66.4 per cent in 2025.
Ms Lau said the Ministry of Manpower is monitoring fresh graduate employment closely, especially for the 2026 cohort, whose six-month employment outcomes will be available soon. She pointed to the Graduate Industry Traineeships that struggling fresh graduates can apply for, along with career services from the Skills and Workforce Development Agency.
On retrenchments, Ms Lau highlighted that financial services recorded the lowest six-month re-entry rate most often over the past 14 quarters, followed by the wholesale trade sector. She said the statistics show there is no single experience of retrenchment: some workers move into new jobs quickly, while others face greater difficulties because of their skills, occupation, age or previous sector.
The Manpower Ministry and its tripartite partners are reviewing the Employment Act, including retrenchment benefits, which are not currently a statutory requirement. Around 88 per cent of employers paid retrenchment benefits to employees; among those who did not, one in five cited financial difficulties. The review will cover whether stronger obligations on employers are warranted and whether administrative action should be taken against employers who refuse to pay despite having the financial ability. Ms Lau stressed the need to balance worker protections with maintaining reasonable business costs.
On the impact of AI on retrenchments, Ms Lau said it is not yet clear, as it is difficult to isolate the specific effect of AI adoption from broader business transformation. MOM surveys indicate that only a small minority of firms adopting AI have reduced headcount, with more creating new roles or redesigning jobs. The ministry will continue to monitor labour market conditions, including employment outcomes for Singaporeans and the foreign workforce.
