TLDR

• Retrenchment in Singapore, while at historically low levels, continues to affect workers across industries.
• The Ministry of Manpower (MOM) reported 3,200 retrenchments in Q2 2025, mainly in tech, finance, and certain manufacturing sub-sectors.
• For those impacted, support extends beyond job matching — it includes career advisory, reskilling programmes, and financial relief schemes. 

Navigating Retrenchment: Resources for Singaporean Workers

Retrenchment is never easy. While Singapore’s overall unemployment rate remains low at 2.1% in Q2 2025 (MOM), job losses from corporate restructuring, global headwinds, and technological shifts still affect thousands of workers each year.

Retrenchment is not just about finding the next job. It is about bridging financial needs, staying employable, and navigating the transition with confidence. Here’s a comprehensive look at the resources available.

Understanding the Current Landscape

The MOM Labour Market Report (Q2 2025) highlighted:

• 3,200 retrenchments in Q2, up slightly from Q1’s 2,800.

• Retrenchments were concentrated in information & communications, finance, and electronics manufacturing.

• PMETs (Professionals, Managers, Executives, and Technicians) continue to form the majority of those affected.

“While retrenchments have risen slightly due to ongoing restructuring, the overall labour market remains resilient,” said MOM in its August 2025 report.

Career and Employment Support

Singapore’s ecosystem for career recovery is extensive, with Workforce Singapore (WSG), SkillsFuture, and CDCs at the core.

Key Resources for Re-Employment

Financial Buffers and Relief

Retrenchment affects not just employment, but household finances. Singapore’s support framework includes both immediate relief and long-term buffers.

Key Financial Support Schemes

• Retrenchment Benefits: While not legally mandated, MOM’s guidelines recommend employers pay retrenched workers 2 weeks to 1 month of salary per year of service (Tripartite Guidelines).

• ComCare Short-to-Medium-Term Assistance (SMTA): Financial aid for low-income households facing sudden income loss.

• CPF Withdrawals: While CPF cannot be freely withdrawn before retirement age, retrenched workers may tap on CPF Education Loan Repayment Support or CPF Housing Loan Flexibility.

• NTUC Care Fund (e-Vouchers): Provides vouchers to union members facing retrenchment or financial hardship.

• Self-Employed Person Relief: Those who are self-employed and lose contracts may qualify for targeted support schemes.
  
  

Emotional and Community Support

Beyond finances and job search, retrenchment can carry emotional weight. Workers often benefit from:

• CDC community workshops for peer sharing.

• NTUC Career Navigator sessions with experienced counsellors.

• Employee Assistance Programmes (EAPs) if previously offered by employers.
  
  

What Retrenched Workers Should Do Immediately

1. Clarify benefits with HR: Ensure you receive all retrenchment benefits due.

2. Register with WSG/MyCareersFuture: Get matched with upcoming vacancies.

3. Tap on SkillsFuture credits: Consider reskilling early for growth industries.

4. Review financial position: Assess CPF, insurance, and savings.

5. Seek interim work if needed: Career Trial or part-time roles can provide a buffer.
   
   

Looking Ahead: Singapore’s Labour Market

While retrenchment numbers rose modestly in 2025, the government expects hiring demand in:

• Healthcare and aged care (due to ageing demographics).

• Green economy (sustainability and carbon management).

• Digital economy (AI, cybersecurity, and fintech).

Singapore’s strategy is not only to cushion retrenchment but to pivot workers into future-ready industries.

FAQs

1. How much retrenchment benefit am I entitled to?
   MOM guidelines recommend 2 weeks to 1 month of salary per year of service, though this is not legally mandated.
2. Can I claim unemployment benefits in Singapore?
   Singapore does not have a national unemployment insurance scheme, but retrenched workers can apply for ComCare SMTA and NTUC relief if eligible.
3. How do I apply for WSG support?
   You can visit WSG Career Centres, register on MyCareersFuture.sg, or approach your local CDC.
4. What if I am self-employed and lose contracts?
   You may be eligible for NTUC support schemes or transitional grants announced during downturns.
   
   

 

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