When retrenchment numbers rise, people do not only read the news as economic data. They read it through their own fears.
A worker may wonder whether their company is next. A mid-career PMET may wonder whether their experience is still valued. A fresh graduate may wonder whether entry-level jobs will become harder to secure. A parent may look at housing loans, school fees, ageing parents and retirement needs, then quietly ask: “What if I lose my job too?”
That question has become sharper because of artificial intelligence. AI is now part of many workplace conversations. It appears in business updates, software rollouts, job advertisements, productivity plans and restructuring exercises. For some people, AI feels exciting. For others, it feels like a warning that work can be changed, reduced or replaced before they are ready.
The anxiety is understandable. Work is not only a salary. It is also identity, routine, confidence, social standing and a way of providing for people we love. When work feels uncertain, the fear can become very personal.
This article is not written to alarm workers. It is also not written to offer easy reassurance. The more honest position is this: AI is changing work, but the impact is uneven. Retrenchments can rise even when total employment continues to grow. New jobs may be created, but that does not automatically mean every lost job is replaced by an equivalent role in pay, fit, dignity, seniority or career direction.
For someone who has already been retrenched, or who is afraid of being retrenched, that distinction matters.
What the latest retrenchment news tells us, and what it does not tell us
The Straits Times reported that retrenchments in Singapore rose in the second quarter of 2026, even as the labour market continued to add jobs. MOM’s advance data showed total employment growing, while retrenchments increased from the previous quarter. The rise was concentrated in selected outward-oriented sectors and driven mainly by business restructuring.
That is the labour market story. The human story is more complicated.
When we say employment grew, we should not assume that the new jobs are equivalent to the ones lost. A displaced PMET may not be able to move easily into a newly created role if the new role requires different skills, offers a different salary, sits in a different sector, or does not match the worker’s stage of life and family needs.
This is why some workers do not feel reassured by broad labour market numbers. They are not simply asking whether there are jobs somewhere in the economy. They are asking whether there is a realistic path for them.
That question deserves empathy. It also deserves a practical answer.
Do not reduce AI anxiety to a slogan
A popular saying in recent years is that AI will not replace people, but people who know AI will replace people who do not. It sounds neat, but it is too simplistic.
Some workers are not avoiding AI because they are lazy or unwilling to learn. They may be carrying caregiving duties, health concerns, fatigue, financial pressure or the fear that they are already being judged as outdated. Some may be in roles where the company has not provided proper training. Others may be in jobs where AI adoption depends more on management decisions, budgets, systems and organisational priorities than on an individual worker’s effort alone.
A better way to think about AI and work is not through slogans, but through the nature of the work itself.
A more useful framework: Matter-of-time, Unlikely AI and Human-only work
We can look at their work in three broad categories. This makes the issue more practical and less frightening.
(1) Matter-of-time work
These are tasks that AI may be able to replace or significantly reduce, but where it has not happened yet. The delay may be due to implementation timing, funding, organisational readiness, regulatory considerations or the company’s internal priorities.
This often includes work that is highly administrative, repetitive, rules-based or mainly technical in a narrow cognitive sense. Examples may include routine documentation, simple information processing, basic report preparation, standardised data entry, first-level drafting or checking work that follows predictable rules.
If much of your role sits here, the aim is not to panic. The aim is to prepare early. Ask yourself:
- Which of my current technical skills are transferable?
- Which new technical skills do I need to acquire?
- Which parts of my work can I learn to do better with AI tools?
- Which human skills will make me more useful even when technology improves?
- Where are the realistic job opportunities in my field or adjacent fields?
- What kind of work still fits my strengths, interests and stage of life?
This preparation requires mental flexibility, open-mindedness and self-awareness. It is not only about attending another course. It is about understanding where your value can move next.
(2) Unlikely AI work
Some work is harder for AI to replace because it depends on human interaction beyond the exchange of information. It involves reading the other person’s unspoken or under-spoken concerns, noticing emotions and behaviours, sensing what is not being said, and responding with empathy and judgement.
This includes work that requires trust, influence, persuasion, leadership, negotiation, caregiving, counselling, complex stakeholder management, conflict resolution and collaboration. In these situations, the worker is not simply processing information. The worker is engaging another human being.
A person doing this kind of work needs empathy, good communication, emotional maturity and the ability to lead or synchronise with others. These skills are not soft in the sense of being optional. In many workplaces, they are the skills that hold teams, clients, families and organisations together.
(3) Human-only work
Some work must remain human because it involves accountability and decision-making. AI may perform analysis, identify patterns and propose options. But when a decision affects people, money, safety, compliance, regulation, shareholders, boards, authorities or public trust, a human being remains answerable.
The law holds people and organisations accountable, not technology. This means good judgement, ethical reasoning and leadership remain important. In Singapore, this matters because many local SMEs, multinational corporations and international organisations operate under Singapore’s legal, regulatory and governance environment. That creates ongoing demand for human judgement and accountability, even when parts of the work are supported by AI.
Most PMET jobs contain all three categories to different degrees. Some tasks may be matter-of-time. Some may be unlikely to be replaced by AI. Some may be human-only because they involve judgement, leadership or accountability. The roles that are likely to remain more resilient are those connected to products or services that are still needed, and those with higher levels of human interaction, judgement and accountability.
The emotional impact: Why this feels bigger than a skills issue
It is tempting to respond to career uncertainty by telling people to reskill. Reskilling is important, but it is not the whole answer.
When someone has been retrenched, they may be grieving more than a job. They may be grieving a sense of identity, loyalty, routine, competence, social status and predictability. When someone has not been retrenched but sees colleagues being let go, they may experience fear, guilt, anger or demoralisation.
Some workers become quiet. Some become hyper-alert. Some check job portals late at night. Some lose sleep. Some become short-tempered with family. Some lose appetite or overeat. Some feel embarrassed to tell friends. Some keep trying to appear composed while carrying a private sense of panic.
These responses are not signs of weakness. They are signs that the person is trying to cope with uncertainty, threat and loss.
The crux is this: do not think you are alone. Reach out for help, especially to someone who can pace with you.
That last point matters. Advice can be useful, but not all advice is paced well. A person who has just been retrenched may not be ready to hear a long list of solutions on the first day. Someone overwhelmed by anxiety may not benefit from being told to simply move on, upskill or stay positive. Good support begins by meeting the person where they are, then helping them take the next manageable step.
What you can do now
Map your work honestly
Write down your main tasks. Then sort them into three columns: matter-of-time, unlikely AI and human-only. This simple exercise can reduce vague fear because it gives shape to what is changing.
Do not judge yourself harshly if many tasks fall under matter-of-time. That does not mean you have no value. It means your next step is to identify what can be transferred, upgraded or repositioned.
Learn AI where it improves your real work
You do not need to learn every AI tool. Start with one practical use case. Use AI to summarise notes, draft a structure, compare options, prepare a checklist, organise research or improve a repetitive process. Then practise reviewing the output with your own judgement.
The goal is not to let AI think for you. The goal is to become more confident using technology while keeping your professional responsibility intact.
Strengthen skills that depend on human judgement
Workers should continue to build skills that remain valuable when tasks change. These include communication, empathy, leadership, stakeholder management, ethical judgement, decision-making, conflict management and the ability to make sense of ambiguity.
For PMETs, the strongest career position is not merely knowing how to use tools. It is being able to combine technical fluency with maturity, perspective and accountability.
Update your career story before a crisis
- Many people update their resume only after they feel forced to. It is healthier to review your career story earlier. Ask:
- What problems do I help solve?
- What kinds of decisions do people trust me to make?
- What industries, clients or systems do I understand?
- What strengths have remained consistent across my career?
- What skills do I need to refresh?
- What roles may fit the next stage of my life?
Your value is not only your job title. It may also be your judgement, experience, relationships, resilience, ability to work with people and understanding of complex situations.
Seek career and emotional support together
Career coaching can help with skills, job search and planning. Counselling can help with fear, shame, grief, anxiety and confidence. For many retrenched or worried workers, both forms of support may be useful.
This is especially important when stress starts affecting sleep, mood, appetite, concentration, relationships or daily functioning. A worker who is emotionally overwhelmed may struggle to make good career decisions, even when the practical options are available.
What employers should remember
Restructuring is not only an operational event. It is also a human event.
Words like optimisation, transformation, productivity and restructuring may be accurate in a corporate presentation, but employees may hear a much harsher message. They may hear that they are no longer valuable. They may hear that their years of service no longer matter. They may hear that they are being quietly moved aside.
Employers cannot remove every difficult business decision. But they can communicate with clarity, empathy and respect. They can offer training early rather than after fear has already taken root. They can provide career transition support and mental health support. They can help managers have more humane conversations. They can avoid reducing people to cost lines.
If companies want workers to adapt to technology, workers also need to feel that they are being treated as people, not just resources.
When career anxiety needs professional support
Some worry during uncertain times is normal. It can motivate preparation. But support may be needed when worry becomes persistent, overwhelming or disruptive. Consider speaking with a counsellor or mental health professional if you notice:
- Poor sleep or frequent waking
- Loss of appetite or overeating
- Constant worry about retrenchment or AI
- Difficulty concentrating
- Loss of motivation
- Irritability or emotional outbursts
- Withdrawal from family or friends
- Physical tension, headaches or stomach discomfort
- Shame after retrenchment
- Feeling hopeless, trapped or unable to take the next step
Counselling offers space to slow down, separate facts from fear and rebuild steadiness. It can help a person process the loss of a role, understand what they are feeling, clarify what matters and take practical steps at a realistic pace.
Sometimes the first helpful sentence is not “I need to fix everything now.” It is simply, “I am scared, and I need someone to walk through this with me.”
Staying relevant without losing yourself
AI will continue to change work. Some tasks will shrink. Some roles will be redesigned. Some expectations will rise. Some workers will need to reskill, some will need to pivot, and some will need time to recover from the emotional impact of job loss.
But a person’s worth should never be reduced to one job title, one employer, one restructuring exercise or one technology shift.
The work ahead is to stay practical without panicking. Understand your exposure. Build transferable skills. Strengthen human judgement. Learn technology where it helps. Seek support early. And most importantly, do not go through career uncertainty alone.
How Promises Healthcare can support
Career uncertainty can affect mental health, sleep, confidence and relationships. Counselling can help individuals process work-related stress, retrenchment anxiety, career transitions and the emotional impact of uncertainty.
Kit Koh brings together mental health counselling, career counselling, organisational psychology and decades of business leadership experience across IT, fintech and hospitality. His work supports students, working adults, PMETs and individuals navigating anxiety, depression, work stress, caregiver fatigue, financial pressure and grief.
If work uncertainty has been weighing on you, speaking with a counsellor can help you regain clarity and take the next step with more steadiness.
Learn more about Kit Koh or arrange a confidential consultation with Promises Healthcare.
Frequently asked questions, and here’s Kit response!
Is AI taking away jobs in Singapore?
AI is changing tasks, workflows and employer expectations. The more practical concern is not whether every job will disappear, but which parts of a role are more exposed to automation and which parts still require human judgement, empathy and accountability.
Why are retrenchments rising if Singapore is still adding jobs?
A labour market can grow overall while some company’s restructure. New jobs may be created in different sectors, functions or skill areas, but they may not be equivalent to the jobs that were lost.
What should I do if I am worried AI will affect my job?
Map your tasks into matter-of-time, unlikely AI and human-only work. Then identify transferable skills, learn practical AI tools, strengthen human skills and seek career guidance early.
What kinds of work are harder for AI to replace?
Work that depends on empathy, communication, leadership, ethical judgement, accountability, decision-making, relationship-building and reading human emotions or unspoken concerns is generally harder for AI to replace fully.
Can career anxiety affect mental health?
Yes. Career anxiety can affect sleep, mood, appetite, concentration, confidence and relationships. If the worry becomes persistent or overwhelming, counselling can help you process the stress and take practical next steps.
How can counselling help with retrenchment or job insecurity?
Counselling provides a safe space to work through fear, shame, grief and decision fatigue. Career counselling can also help clarify strengths, values, options and realistic next steps during a transition.