1 in 5 retrenched PMET workers in S’pore still jobless after 2 years

One in five retrenched resident professionals, managers, executives and technicians (PMETs) remain jobless two years after losing their jobs, while four in 10 of those who return to work earn less than before, with a median pay cut of 25%.

Acting Minister for Manpower Jasmin Lau gave these figures in Parliament on Tuesday (Oct 6), according to The Business Times.

The figures come as retrenchments climb in Singapore. In Q2 2026, there were 4,620 retrenchments, the highest level since Q4 2020, up from 3,830 in Q1.

Who’s getting retrenched?

Overall, about seven in 10 retrenched resident PMETs re-entered employment within 12 months, rising to around eight in 10 within two years. This means around two in 10 remained out of work after two years.

Among those who found new jobs, six in 10 earned more than before at both the one- and two-year marks. However, those who took lower-paying jobs saw their wages fall by a median of around 25% from their pre-retrenchment levels.

However, re-employment outcomes varied by age and education level.

Those who were retrenched tended to be older and more highly qualified, with workers in their 40s and 50s making up more than half of the group. Meanwhile, the proportion holding degrees climbed sharply, from 51% in 2021 to 66.4% in 2025.

This pattern flipped for the less formally educated, where workers with secondary schooling or below bounced back faster than average, both in how quickly they found work and how likely they were to do so within six months.

Re-entry rates also varied across industries. Over the past 14 quarters, financial services most often recorded the lowest six-month re-entry rate for retrenched resident PMETs, followed by wholesale trade.

“These figures show that the experience of retrenchment is not the same for every worker,” Lau said. “Some are able to move into new jobs relatively quickly, while others may face greater difficulties because of their age, skills, occupation or the sector they were previously working in.”

Lau was responding to parliamentary questions on retrenchments. Nine Members of Parliament (MPs), including four labour MPs, had filed questions on the issue, touching on re-employment outcomes, retrenchment benefits and support for older workers.

Is AI to blame?

The weaker re-employment outcomes come as retrenchments rise in Singapore.

MOM’s labour market data, released on Sept 21, showed that 4,620 workers were retrenched in Q2 2026, the highest level since Q4 2020, up from 3,830 in Q1.

When Workers’ Party MP He Ting Ru asked whether retrenchments were being driven by artificial intelligence adoption, Lau said: “This is not clear at present, as it is difficult to isolate the specific impact of AI adoption from broader business transformation and reorganisation.”

Only a “small minority” of firms adopting AI had reduced headcount, Ministry of Manpower (MOM) surveys indicated, with more firms instead creating new roles or redesigning jobs.

Business restructuring remains the main driver of retrenchments, Lau added.

More than half of job seekers have benefited from career support services

As workers face a shifting job market, career support and reskilling programmes have helped some displaced workers return to employment.

About six in 10 jobseekers who received career-matching services found employment within six months, Lau said, while nine in 10 Career Conversion Programme (CCP) participants remained employed 24 months after joining.

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

However, Lau said completing a reskilling programme did not by itself insulate older workers from future retrenchment, particularly in rapidly transforming sectors.

Broader measures are being studied under the Tripartite Workgroup on Senior Employment, a joint effort by MOM, the National Trades Union Congress and Singapore National Employers Federation, with recommendations due later this year, she said.

MOM is in the process of reviewing The Employment Act

Around 88% of employers that submitted mandatory retrenchment notifications in 2025 paid retrenchment benefits.

Of the remaining 12%, about one in five cited financial difficulties, while others pointed to not being obliged to pay, or having provided other forms of support. Among retrenched workers who received no benefits, close to 80% were from companies with fewer than 200 employees.

While retrenchment benefits are not a statutory requirement, Lau said MOM and its tripartite partners are considering whether stronger obligations on employers are warranted as part of the ongoing Employment Act review. An update would be given “in due course”, she said.

The review was announced in March 2025, aiming to keep worker protections strong while preserving flexibility for businesses. The Act was last amended in 2019.

Responding to labour MP Yeo Wan Ling, who asked whether more could be done in cases where employers could afford retrenchment benefits but refused to pay, Lau said one option being considered is “administrative action” against employers in egregious cases, though she did not elaborate on what this could entail.

Tripartite partners also had to weigh stronger worker protections against reasonable business costs, Lau said.

“We do not want to inadvertently place more jobs at risk by imposing a rigid obligation on employers regardless of their situation.”

• Read other articles we’ve written on Singaporean businesses here.

Featured Image Credit: Hongwei Fan/ Unsplash