Disclaimer: Unless otherwise stated, any opinions expressed below belong solely to the author. Data sourced from the Ministry of Manpower.
Yesterday I reported some positive news from the local labour market, which still has around 40,000 vacancies for PMET candidates available. Today, I’m afraid, it’s time to balance it out with some negative findings, also from data published by the Ministry of Manpower.
As ever, the economic situation within the country differs greatly between industries.
Some are booming, pulling the country ahead, while some are falling behind, and their plight is often absent from the news headlines. This is especially true today, as the staggering boom in artificial intelligence (AI) has boosted local manufacturing sectors, raising the average GDP growth up to 6%.
Singapore is reported to be a huge success story, posting economic performance comparable to or even better than that of developing countries.
But not all is rosy on the island, as the examples of the industries struggling this year reveal. Please note that the following numbers include all workers, local and foreign:
Net change in employment in 2026, by industry
| Industry | Change in the first half of 2026 |
|---|---|
| Food & Beverage Services | -3,400 |
| IT & Other Information Services | -1,700 |
| Wholesale Trade | -1,100 |
| Accommodation | -800 |
| Paper / Rubber / Plastic Products & Printing (Manufacturing) | -700 |
| Retail Trade | -600 |
| Transport Equipment (Manufacturing) | -500 |
| Legal, Accounting & Management Services | -400 |
| Insurance Services | -200 |
| Other Professional Services | -100 |
| Air Transport & Supporting Services | -100 |
| OTHER | -700 |
| TOTAL | -10,300 |
The top entry on this list is a surprise to nobody.
The Food & Beverage sector is known to have been suffering in recent years, with hundreds of restaurant closures amid pressures from rising rents and inflation on one end, and limited willingness for customers to pay enough to offset these rising costs on the other (as well as some predatory competition from China).
But the situation is the worst it has been since the pandemic.
Throughout 2024 and 2025, employment in F&B services remained relatively stable, but this year’s slump has already wiped out virtually all the jobs added all the way back to 2023. In terms of labour, F&B is where it was at the end of 2022, when it was still emerging from the pandemic crisis.
That said, it’s quite likely that the majority of the workers affected are non-Singaporean (though Singaporeans have to accept a shrinking selection of food venues).
What’s more concerning is the IT sector’s slide, despite other data suggesting it’s doing well.
Shrinking IT
With close to 4,000 vacancies, it appears to be pretty strong, remaining open to qualified candidates. And yet, the number of people it employs in Singapore keeps shrinking.
This year’s drop of 1,700 jobs follows 3,700 lost in 2025. Since Q4 of 2024, the total fall in IT employment has reached around 6,200 positions—and we know that those are some of the best-paying ones in Singapore.
So, on the one hand, tech appears to be booming and looking for more people and, on the other, we’re seeing it getting rid of workers at the highest pace on record.
Clearly, the AI revolution has eaten into the profession, as companies move priorities from employing the best talent to deploying the most capable AI solutions—and paying for that investment through headcount cuts.
It’s hard to say whether the large number of advertised vacancies is due to skill mismatch in the age of AI or whether they are ghost offers that never really get filled.
Not even corporate workers are safe
While posting much smaller losses, it’s worth noting that even those in roles established around local corporations in legal, management, accounting or insurance services cannot feel too comfortable about their employment.
Excluding architecture and engineering, professional services have posted a drop of 700 jobs in the first half of the year.
While it may seem small, it’s equivalent to a pretty big company going completely out of business and taking all of its people. And, unfortunately, it’s also a part of a longer trend, as the sector had lost a total of 2,200 jobs in the 18 months up to Jun 2026. It’s not an isolated stumble.
It’s hard to say if that too is a result of AI, but this trend deserves attention, as next to IT and Finance, those tend to be well-paying jobs that many Singaporeans are interested in.
As you can see, the biggest tech revolution of our time might have boosted Singapore’s economy sky high, but not everybody was lucky enough to secure a ticket for the ride.
- Read other articles we’ve written on Singapore’s job landscape here.
Featured Image Credit: Hongwei Fan/ Unsplash
