Retrenchment rates in Singapore tick up in Q4 2024, largely due to business reorganisation

Retrenchments in Singapore increased by 18% in Q4 2024, with 3,600 job cuts. While most layoffs stemmed from business restructuring, unemployment rates remained stable, reflecting a resilient labour market.

In Q4 2024, the number of retrenchments in Singapore rose to 3,600, up from 3,050 in Q3 2024. Despite the rise in retrenchment, the total annual retrenchments for 2024 were lower at 12,930 compared to 14,590 in 2023, with an incidence rate of 5.8 retrenchments per 1,000 employees (down from 6.7 in 2023). This is according to the Ministry of Manpower’s (MOM) Labour Market Advance Release – Fourth Quarter 2024. 

Which sectors were most affected?  

Per the report, the following sectors recorded the most retrenchment numbers: \

1) Services sector: Accounted for the bulk of retrenchments, with 2,800 job cuts. 

2) Manufacturing sector: Recorded 700 retrenchments 

3) Construction sector: Relatively few layoffs, with 100 cases reported.  

The main reason behind the retrenchments was business restructuring and reorganisation, as firms adjusted to evolving market conditions and technological advancements. Unlike previous economic downturns, these layoffs were not caused by or widespread business closures, MOM shared. 

Additionally, the retrenchment incidence rate fell, showing that businesses are taking a more measured approach to workforce adjustments. Meanwhile, growth sectors such as professional services, financial services, and health & social services continued to create opportunities for workers. 

Looking ahead, businesses are expected to remain cautious due to global uncertainties. However, there are reasons for optimism:  

1) Hiring plans: 46% of companies surveyed in December 2024 indicated plans to hire. 

2) Wage increases: 32% of companies planned to raise wages, up from 16% September 2024.  

While retrenchments increased in Q4 2024, MOM highlighted that the overall labour market remains stable, supported by strong demand in key industries. Key sectors continue to drive job creation, and businesses are adapting to long-term challenges with support for transformation and innovation.  

Infographic: MOM report 

Lead image / Ministry of Manpower Facebook