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The employment situation in Singapore remains positive, although the job market is showing signs of cooling in another report. According to the latest Q3 release by ManpowerGroup Singapore, the Net Employment Outlook index dropped to just 13%, the lowest reading since 2022.
NEO is measured as the simple difference between the share of companies expecting to increase employment and those expecting cuts.
Of course, as always, these are only averages, and your situation will depend not only on the specific industry but also on the type and size of the company you work for or like.
Manufacturing leads the way, which is not surprising given the impact AI has had on demand for locally made electronics and semiconductors.
However, almost all other industries have experienced significant declines.
Although the IT sector is stable and optimistic, it is not immune to layoffs – like the latest round recently announced at Shopee.
Currently, Finance and Insurance sank into a bad position after losing by 13 points. It may seem like some of the most lucrative jobs in Singapore can be hard to come by this quarter.
It may be combined with the fact that many companies in this sector employ thousands of people.
Yes, you read that right: NEO scores for companies of 5000+ employees and above negative 26%, after dropping 29 points. Simply put, more employers are planning layoffs than new hires.
This is an alarmingly low reading, especially compared to the global average of 24%.
In fact, all companies hiring 50 pax or more report a significant decline in hiring sentiment, although no other group has sunk into negative territory.
Meanwhile, employment appears to be on the rise at the end, with a 42% gain in businesses under 10 and 34% in those over 10 but under 50. Both also recorded a strong positive shift ahead of Q3, which countered the negative sentiment of large businesses.
This is unlikely to bring comfort to those wary of potential layoffs at large employers, as small businesses rarely match pay and benefits, except, perhaps, for low-paid roles.
Compared to 2025, Singaporean employer sentiment has worsened on average, by 11 points. The worst performer in the world is the UAE, which should not be surprising given the war with Iran that has disrupted local business and led to thousands of people fleeing, with no set date for a return to normality.
But not all is bad in the world, as the UK, the US or Sweden report positive attitudes (among developed countries) despite the turmoil in the world.
That said, they all face much higher unemployment rates than Singapore (currently around 3% of residents), the US at 4.3%, the UK at around 5% and Sweden at 8.7%. Perhaps this explains why many companies expect their prices to increase soon, and Singapore is well known for its persistent talent shortage.
- Read other articles we have written on Singapore current affairs here.
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