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Measures being studied include earlier job support, retrenchment benefits, and help for workers facing longer job transitions.
The Government is reviewing measures to strengthen support for retrenched workers as Singapore’s labour market shows signs of softening Jasmin Lau, Acting Minister for Manpower said in Parliament on 6 October.
This comes as retrenchments in Singapore rose to 4,500 in Q2 2026, an increase from 3,830 in Q1. The increase was largely driven by business reorganisation or restructuring.
Acting Minister Lau said the Government is working with tripartite partners to support retrenched workers in re-entering employment. Upon receiving retrenchment notifications or early retrenchment alerts, the Task Force for Responsible Retrenchment and Employment Facilitation reaches out to affected employees to offer employment facilitation support.
Financial support during job search
Acting Minister Lau said the initial job search can be difficult, especially for lower- to middle-income workers with heavy financial responsibilities.
The SkillsFuture Jobseeker Support Scheme provides temporary financial support to involuntarily unemployed individuals while they actively seek employment and participate in job search and career-related activities.
As businesses restructure and jobs transform, some job seekers may also need to consider career switches, which require more substantial reskilling.
They can participate in Career Conversion Programmes, the Mid-Career Pathways Programme and SkillsFuture Career Transition Programmes.
Support for longer employment transitions under review
While the labour market remains resilient, there are signs of softening, the Acting Minister pointed out. The Government is therefore comprehensively reviewing its measures to see how support for workers can be strengthened.
Specifically, tripartite partners are studying measures to ensure workers are treated fairly when retrenchments occur. This includes looking at the payment of retrenchment benefits and earlier access to employment facilitation services, so workers can receive support at the earliest opportunity.
The Government is also looking at how to support workers who face longer transitions back into employment, including older workers and those in sectors undergoing significant restructuring.
This work is being taken forward through various reviews, including the ongoing Employment Act review and the Tripartite Work Group on Senior Employment.
As the reviews continue, Acting Minister Lau stressed that the focus is on strengthening support for workers at different stages of a retrenchment, from accessing employment support early to navigating longer transitions back into work.
ALSO READ: Retrenchments in Singapore rose to 4,500 in Q2 2026
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