New Initiatives for Worker Support Amid Job Market Shifts

SINGAPORE – The Ministry of Manpower (MOM) is set to implement new strategies aimed at providing enhanced support for workers, particularly fresh graduates and those in career transitions. Acting Manpower Minister Jasmin Lau emphasized the need for these initiatives in response to shifting job market dynamics.

Longer Traineeships Ahead

In a recent interview, Lau highlighted plans to extend and structure traineeships for recent graduates, ensuring they are better prepared for the workforce. Although unemployment rates remain low and graduates have favorable outcomes, with most securing jobs in less than six months, the landscape is changing. There are signs of slower hiring practices and an increase in retrenchments.

Retrenchments rose to a preliminary figure of 4,800 in the third quarter of 2026, up from 4,620 in the previous quarter, marking the highest level since the pandemic began. Despite these alarming numbers, Lau reassured that the current figures do not indicate an imminent economic recession but rather a transition within the workforce.

Focus on Career Transitions

Lau pointed out that while job vacancies remain robust, particularly in construction and marine sectors, there are significant challenges in other industries, especially for professionals, managers, executives, and technicians (PMETs). Alarmingly, PMETs now represent 90% of retrenched workers, a stark rise from previous years.

“The job market is not going to return to a time of long-term stability where employees remain in the same roles for decades,” Lau said. Current growth opportunities lie within sectors like financial services and advanced manufacturing, which are experiencing rapid changes influenced by global economic factors.

Adapting to Market Needs

As the landscape shifts, workers are facing longer job search durations. Recent statistics reveal that only 54.9% of retrenched workers found new jobs within six months, marking a decline from 64.6% ten years ago. This troubling trend underscores the necessity for the government to adapt its support systems to cater to individuals transitioning between industries.

In response, MOM is also exploring ways to relax eligibility criteria for existing support schemes, allowing older workers greater access. Plans are underway to enhance the Graduate Industry Traineeships (GRIT) program, introducing features such as mentorship, recognized certifications, and guaranteed employment upon completion.

Continued Legislative Reviews

The ministry is also undertaking a comprehensive review of the Employment Act, considering whether to make retrenchment benefits mandatory for employers capable of offering them. However, Lau indicated that the government is cautious about introducing rigid laws that could deter companies from hiring altogether.

The primary goal of these measures is to foster a balanced approach that secures jobs for workers while ensuring businesses can thrive. Striking this balance is crucial, as excessive regulation could lead firms to move towards contract roles instead of permanent employment, undermining job security for workers.

With a clear focus on creating policies that support both employees and employers, the Manpower Ministry aims to inspire confidence among workers regarding their future employment prospects. “Jobs are deeply tied to livelihoods and the hope of families. A thriving business environment is essential to provide those jobs,” concluded Lau.