The city-state’s hiring outlook has fallen to a five-year low
Singapore employers are turning more cautious on hiring for the third quarter of 2026.
According to ManpowerGroup’s latest Employment Outlook Survey, only 35% of employers in Singapore plan to increase headcount between Jul and Sept. Meanwhile, 41% expect no change to staffing levels, while 22% anticipate reducing their workforce.
Based on responses from 599 employers, Singapore’s Net Employment Outlook (NEO) for Q3 2026 came in at 13%, down 11 percentage points both quarter-on-quarter and year-on-year. This marks the softest hiring outlook since Q4 2021, when the NEO stood at -2%.
(Note: The NEO is calculated by subtracting the percentage of employers expecting to reduce headcount from those planning to hire.)
Singapore’s hiring outlook also lagged behind both the global average of 26% and the Asia-Pacific regional average of 28%.
Among employers planning to keep staffing levels unchanged, 38% said their current workforce was sufficient to meet business needs. Another 27% said they were holding off on hiring until there is greater clarity on economic conditions.
“Employers in Singapore are taking a more cautious approach to hiring this quarter, with many choosing to hold steady on headcount until there is greater clarity on geopolitical conditions,” said Linda Teo, country manager of ManpowerGroup Singapore.
Outlook across key industries
Despite the weaker overall hiring sentiment, most industries in Singapore still recorded positive NEOs for Q3 2026, indicating that more employers plan to hire than reduce headcount.
The Manufacturing sector reported the strongest hiring outlook among all industries surveyed.
At the other end of the spectrum, the Finance and Real Estate sector was the only major industry to record a negative NEO of -2%, signalling that more employers expect to cut jobs than add them. The Hospitality and Retail sector posted a flat NEO of 0%, though ManpowerGroup noted that the result was based on a relatively small sample size.
Quarter-on-quarter, hiring sentiment weakened across almost every industry. Most sectors saw their NEOs fall by double-digit percentage points, reflecting growing caution among employers amid ongoing economic and geopolitical uncertainty.
The Technology and IT sector was the exception, with its hiring outlook remaining unchanged from the previous quarter, making it the most stable sector in the survey.
One notable outlier was Utilities and Natural Resources, where the NEO jumped by 34 percentage points quarter-on-quarter. While ManpowerGroup cautioned that the sector’s sample size was relatively small, the increase comes amid Singapore’s continued push towards sustainability and clean energy development.
Last October, Minister of State for Trade and Industry Gan Siow Huang said the clean energy workforce is expected to grow by 60%—or around 1,000 workers—over the next decade, highlighting the sector’s longer-term growth potential.
AI skills pay off
Amid the challenging job landscape, Teo added that hiring decisions are becoming more selective, with companies prioritising a “skills-based approach.”
AI-related skills topped the list of competencies that employers are willing to pay a premium for.
According to the survey, 66% of Singapore employers said they would offer higher pay for AI literacy skills, such as the ability to use AI tools effectively. 64% would pay more for AI model and application development skills, while 56% cited traditional IT and data skills.
Sector-wise, employers in the public sector, health and social services were the most likely to pay a premium for AI literacy skills (78%), followed by professional, scientific and technical services (72%) and tech and IT services (69%).
For AI model and application development skills, employers in the information sector and professional, scientific and technical services were the most willing to pay more, with both industries recording 76%. Finance and insurance firms followed at 71%.
Employers also value interpersonal and soft skills, with 66% saying they would pay more for critical thinking and problem-solving. The same proportion would pay a premium for communication, collaboration and teamwork, followed by leadership and social influence capabilities at 64%.
The findings suggest that while employers may be slowing their hiring plans, they remain prepared to invest in workers with in-demand technical and transferable skills.
- Read other articles we’ve written on Singapore’s current affairs here.
Featured Image Credit: 2p2play via Shutterstock
