MOM reviewing worker support measures as retrenchments hit highest level since 2020

Acting Minister for Manpower Jasmin Lau said the Ministry of Manpower (MOM) is reviewing worker support measures as retrenchments hit their highest level since 2020, during the COVID-19 pandemic.MOM's data showed that the number of retrenchments rose to 4,620 in the second quarter of 2026, which is about two retrenched workers per 1,000 employees, up from 3,830 retrenchments in the first quarter.Based on MOM's Labour Market Report released on Sept 21, the rise was driven by business reorganisation and restructuring in sectors such as manufacturing, information & communications and financial services.'Not clear' if AI is driving retrenchmentsDuring parliament on Tuesday (Oct 6), Lau said that it is unclear if retrenchments have been driven up by AI adoption.She said that the impact of AI adoption is difficult to isolate from broader business transformations and reorganisation, adding that the ministry’s surveys found that only a small minority of firms adopting AI have reduced headcounts, with more creating new roles or redesigning jobs.