Commentary: What happens after retrenchment may matter more than the headline number

Commentary: What happens after retrenchment may matter more than the headline number


Consider, for illustration, a professional earning S$8,400 a month, the 2025 median for full-time employed resident PMEs, excluding employer CPF contributions. Suppose the worker is retrenched and, six months later, finds a job paying S$6,000, roughly what a PME at the 25th percentile earns.

Employment statistics would record a successful re-entry. However, the worker has gone six months without a salary, potentially offset by retrenchment benefits or other financial support, and now faces substantially lower monthly earnings.

Re-employment, therefore, tells us whether someone found another job, but less about how much of the economic loss from retrenchment has been recovered.




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