Extent to Which Retrenchments among Degree Holders are Associated with Business Restructuring and Technological Change, and Most Affected Occupations

Ms Cassandra Lee asked the Acting Minister for Manpower given the rise in retrenchment incidence among degree holders from 2.6 to 3.1 per 1,000 employees in the first quarter of 2026, whether the Ministry has assessed (i) the extent to which these retrenchments are associated with business restructuring, technological change or AI adoption and (ii) which occupational groups are most affected.

The Ministry does not track the reasons for retrenchment by specific educational groups such as degree holders. In the first quarter of 2026, business reorganisation or restructuring remained the predominant reason for retrenchments, accounting for 74% of all retrenchments. Reorganisation or restructuring may include reasons, such as technological change or artificial intelligence adoption, amongst other things.

In 1Q 2026, professionals, managers, executives and technicians (PMETs) continued to have the highest retrenchment incidence at 2.6 retrenched per 1,000 resident employees; compared with 0.7 retrenched per 1,000 for clerical, sales and service workers; and 0.3 retrenched per 1,000 for production and transport operators, cleaners and labourers. However, it is important to note that these rates, including those for PMETs, remain within the non-recessionary range observed between 2015 and 2019.

We will continue to review how our data collection can better capture the drivers of retrenchment across different educational and occupational groups.