The city’s hiring outlook is at a five-year low
Employers in Singapore become more cautious about hiring in the third quarter of 2026.
According to ManpowerGroup’s latest Employment Outlook survey, only 35% of employers in Singapore plan to increase their headcount between July and September. Meanwhile, 41% expect no change in staffing levels, while 22% expect to cut staff.
Based on responses from 599 employers, Singapore’s Net Employment Outlook (NEO) for Q3 2026 came in at 13%, down 11% quarter-on-quarter and year-on-year. This marks a soft hiring outlook from Q4 2021, when NEO stands at 2%.
(Note: NEO is calculated by subtracting the percentage of employers who expect to reduce the number of people they plan to hire.)
Singapore’s hiring outlook also lags behind both the global average of 26% and the Asia-Pacific region average of 28%.
Of employers who plan to keep staffing levels the same, 38% said the current workforce is sufficient to meet business needs. Another 27% said they have stopped hiring until there is more clarity on the economic situation.
“Employers in Singapore are taking a cautious approach to hiring this quarter, with many opting to hold off on hiring until there is more clarity on the country’s conditions,” said Linda Teo, country manager of ManpowerGroup Singapore.
Outlook for all key industries
Despite weak hiring sentiment, many industries in Singapore are still recording positive NEOs for Q3 2026, indicating that more employers plan to hire rather than downsize.
The Manufacturing sector reported a strong hiring outlook across 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%, indicating that more employers expect to cut jobs rather than add them. The Hospitality and Retail sector posted a low NEO of 0%, although ManpowerGroup noted that the result was based on a relatively small sample size.
Quarter by quarter, hiring sentiment is weakening across almost every industry. Many sectors saw their NEOs drop by double-digit percentages, reflecting growing caution among employers amid continued economic and global uncertainty.
The Technology and IT sector was the exception, as its hiring outlook remained unchanged compared to the previous quarter, making it the most stable sector in the survey.
Another highlight was Utilities and Natural Resources, where NEO jumped 34 percentage points quarter-on-quarter. Although ManpowerGroup cautioned that the sector’s sample size was relatively small, the increase comes amid Singapore’s continued progress in clean energy development.
Last October, Trade and Industry Minister Gan Siow Huang said the clean energy workforce is expected to grow by 60 percent – or about 1,000 workers – over the next decade, highlighting the sector’s long-term growth prospects.
AI skills are paying off
Amidst the challenging job situation, Teo added that hiring decisions are becoming more selective, with companies prioritizing a “skills-based approach.”
AI-related skills are high on the list of skills employers are willing to pay a premium for.
According to the survey, 66% of Singaporean employers said they would offer higher wages for AI literacy skills, such as being able to use AI tools effectively. 64% will pay more for AI modeling and application development skills, while 56% cite general IT and data skills.
By sector, employers in the public sector, health and social services are the most likely to pay a premium for AI literacy skills (78%), followed by technology, science and technology services (72%) and technology and IT services (69%).
For AI modeling skills and application development skills, employers in the information and technology, scientific and technological services sector were the most willing to pay more, with both industries recording 76%. Finance and insurance companies followed at 71%.
Employers also value interpersonal and interpersonal skills, with 66% saying they would pay more for critical thinking and problem solving. The same proportion will pay for communication, cooperation and collaboration, followed by leadership and the power of social influence at 64%.
The findings suggest that while employers may be scaling back their hiring plans, they remain willing to invest in workers with the necessary technical and transferable skills.
- Read other articles we have written on Singapore current affairs here.
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