Town-state’s hiring outlook has fallen to a five-year low
Singapore employers are turning extra cautious on hiring for the third quarter of 2026.
In response to ManpowerGroup’s newest Employment Outlook Survey, solely 35% of employers in Singapore plan to extend headcount between Jul and Sept. In the meantime, 41% anticipate no change to staffing ranges, whereas 22% anticipate lowering their workforce.
Primarily based on responses from 599 employers, Singapore’s Internet Employment Outlook (NEO) for Q3 2026 got here in at 13%, down 11 proportion factors each quarter-on-quarter and year-on-year. This marks the softest hiring outlook since This fall 2021, when the NEO stood at -2%.
(Notice: The NEO is calculated by subtracting the proportion of employers anticipating to cut back headcount from these planning to rent.)
Singapore’s hiring outlook additionally lagged behind each the worldwide common of 26% and the Asia-Pacific regional common of 28%.
Amongst employers planning to maintain staffing ranges unchanged, 38% mentioned their present workforce was ample to fulfill enterprise wants. One other 27% mentioned they have been holding off on hiring till there may be larger readability on financial situations.
“Employers in Singapore are taking a extra cautious method to hiring this quarter, with many selecting to carry regular on headcount till there may be larger readability on geopolitical situations,” mentioned Linda Teo, nation supervisor of ManpowerGroup Singapore.
Outlook throughout key industries
Regardless of the weaker total hiring sentiment, most industries in Singapore nonetheless recorded constructive NEOs for Q3 2026, indicating that extra employers plan to rent than scale back headcount.
The Manufacturing sector reported the strongest hiring outlook amongst all industries surveyed.
On the different finish of the spectrum, the Finance and Actual Property sector was the one main trade to file a adverse NEO of -2%, signalling that extra employers anticipate to chop jobs than add them. The Hospitality and Retail sector posted a flat NEO of 0%, although ManpowerGroup famous that the consequence was based mostly on a comparatively small pattern dimension.
Quarter-on-quarter, hiring sentiment weakened throughout nearly each trade. Most sectors noticed their NEOs fall by double-digit proportion factors, reflecting rising warning amongst employers amid ongoing financial and geopolitical uncertainty.
The Expertise and IT sector was the exception, with its hiring outlook remaining unchanged from the earlier quarter, making it probably the most secure sector within the survey.
One notable outlier was Utilities and Pure Assets, the place the NEO jumped by 34 proportion factors quarter-on-quarter. Whereas ManpowerGroup cautioned that the sector’s pattern dimension was comparatively small, the rise comes amid Singapore’s continued push in direction of sustainability and clear vitality growth.
Final October, Minister of State for Commerce and Trade Gan Siow Huang mentioned the clear vitality workforce is predicted to develop by 60%—or round 1,000 employees—over the following decade, highlighting the sector’s longer-term development potential.
AI abilities repay
Amid the difficult job panorama, Teo added that hiring selections have gotten extra selective, with corporations prioritising a “skills-based method.”
AI-related abilities topped the record of competencies that employers are keen to pay a premium for.
In response to the survey, 66% of Singapore employers mentioned they’d provide greater pay for AI literacy abilities, reminiscent of the power to make use of AI instruments successfully. 64% would pay extra for AI mannequin and utility growth abilities, whereas 56% cited conventional IT and information abilities.
Sector-wise, employers within the public sector, well being and social companies have been the most probably to pay a premium for AI literacy abilities (78%), adopted by skilled, scientific and technical companies (72%) and tech and IT companies (69%).
For AI mannequin and utility growth abilities, employers within the info sector {and professional}, scientific and technical companies have been probably the most keen to pay extra, with each industries recording 76%. Finance and insurance coverage companies adopted at 71%.
Employers additionally worth interpersonal and comfortable abilities, with 66% saying they’d pay extra for vital considering and problem-solving. The identical proportion would pay a premium for communication, collaboration and teamwork, adopted by management and social affect capabilities at 64%.
The findings counsel that whereas employers could also be slowing their hiring plans, they continue to be ready to spend money on employees with in-demand technical and transferable abilities.
Learn different articles we’ve written on Singapore’s present affairs right here.
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