Fresh graduates are now taking longer to secure full‑time positions, and workers who have been retrenched are finding it harder to get new jobs, according to Acting Minister for Manpower Jasmin Lau.

Retrenchments rose to 4,620 in the second quarter, the highest level since late 2020. The six‑month re‑entry rate for retrenched residents fell to 54.9% in Q2, down from 60.7% in the first three months. Degree‑holder share among retrenched residents increased from 51% in 2021 to 66.4% in 2025, Acting Minister for Manpower Jasmin Lau said.

Ms Lau explained that seasonal hiring patterns partly account for the slower re‑entry, but the drop also reflects softer demand in sectors such as manufacturing, information and communications, financial services and professional services. The decline was most pronounced among clerical, sales and service workers, tertiary‑educated residents and those under 30, making sector switches take more time and effort.

The Ministry of Manpower is responding by reviewing the Employment Act and the obligations around retrenchment benefits. Acting Minister for Manpower Jasmin Lau said the review will consider whether stronger employer obligations are needed, noting that about 88% of employers currently pay retrenchment benefits while some cite financial difficulty or the lack of a statutory requirement for not paying.

These trends show that both fresh graduates and retrenched workers are facing a tighter labour market, and policy adjustments aim to balance worker protection with business sustainability.