Singapore retrenched PMETs face prolonged job search: 1 in 5 still jobless after 2 years; 4 in 10 take 25% pay cuts when they return for work

Summary

• One in five retrenched resident professionals, managers, executives and technicians (PMET) stayed unemployed two years after losing their jobs.

• Four in 10 PMETs who returned to work earned less than before, with a median wage reduction of 25%.

• Singapore recorded 4,620 retrenchments in the second quarter of 2026, the highest quarterly total since the fourth quarter of 2020.

SINGAPORE: Retrenchment can end with a new job, but the road back may come with a lower salary. In Singapore, one in five retrenched resident professionals, managers, executives and technicians (PMET) remained unemployed two years after losing their jobs.

Among those who found work again, four in 10 earned less than before. Their median pay cut was 25%, according to figures shared by Acting Minister for Manpower (MOM) Jasmin Lau in Parliament on Oct 6.

There were 4,620 retrenchments in the second quarter, up from 3,830 in the first. It was the highest quarterly total since the fourth quarter of 2020, Vulcan Post reported (Oct 6), citing the Business Times.

Older PMETs face a harder return to work

About seven in 10 retrenched resident PMETs returned to employment within 12 months. This figure rose to around eight in 10 within two years.

Among those who found jobs, six in 10 earned more than before their retrenchment at both milestones.

Age and education shaped these outcomes. Workers in their 40s and 50s made up more than half of those retrenched. Degree holders also accounted for a rising share, increasing from 51% in 2021 to 66.4% in 2025.

By contrast, workers with secondary education or below returned to work faster than the overall group.

Financial services recorded the lowest six-month re-employment rate most frequently over the past 14 quarters, followed by wholesale trade.

AI isn’t yet the main explanation

Workers’ Party MP He Ting Ru asked whether artificial intelligence (AI) was driving the rise in retrenchments.

Ms Lau responded that the effects of AI were difficult to separate from business changes and restructuring. Ministry of Manpower surveys found that only a small minority of firms adopting AI had cut staff. More firms had created new roles or redesigned existing jobs.

Business restructuring stayed the main driver of retrenchments, Ms Lau said.

Career support helps, but job security isn’t guaranteed

Around six in 10 jobseekers who received career-matching services found employment within six months. Nine in 10 Career Conversion Programme participants were still employed 24 months after joining.

Among mature participants, close to nine in 10 remained employed 12 months after completing the programme.

However, retraining alone cannot protect older workers from future job losses, particularly in sectors undergoing rapid change. A tripartite workgroup involving the Ministry of Manpower, the National Trades Union Congress and the Singapore National Employers Federation is studying ways to support senior workers.

Retrenchment benefits may face stricter rules

About 88% of employers that filed mandatory retrenchment notifications in 2025 paid retrenchment benefits. Among workers who received none, close to 80% came from firms with fewer than 200 employees.

Such benefits aren’t legally required in Singapore. The Government and its tripartite partners are reviewing whether employers should face stronger obligations under the Employment Act.

One option under consideration is administrative action against employers that can afford benefits but refuse to pay in serious cases.

Singapore needs to protect workers without placing unnecessary strain on firms. But when experienced workers can spend years seeking a new job, practical career support and fair treatment during retrenchment become essential.

Finding work again should offer a fresh start, not leave people counting the cost of losing their old one.