Written Answer to PQ on Drivers of degree holder retrenchments

NOTICE PAPER NO. 971 OF 2026 FOR THE SITTING ON 4 AUGUST 2026
QUESTION NO. 2434 FOR ORAL ANSWER

MP: Ms Cassandra Lee

To ask 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.

Answer:

The Ministry does not track the reasons for retrenchment by specific educational groups such as degree holders. In 1Q 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 AI adoption, amongst other things.

2 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.

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