Singapore job market: Hiring remains strong despite headwinds

The latest employment data from Singapore reveals a stable yet nuanced hiring environment. The overall hiring sentiment remains positive, but organisations are increasingly prioritising workforce stability amid economic normalisation and global uncertainty.

According to the latest ManpowerGroup Employment Outlook Survey, hiring intentions in the city-state have held steady, with employers demonstrating a mix of optimism and caution.

Of the 525 employers surveyed regarding their hiring plans for the upcoming quarter:

• 39% intend to recruit
• 12% foresee staff reductions

A notable 49% expect no change, underscoring a growing preference for workforce stability.

The Net Employment Outlook, a key indicator of hiring confidence, stands at +27% after seasonal adjustments – a two-point increase from the previous quarter and three points higher than the same period last year.

Also Read: 2 in 3 Singaporeans want to switch jobs

Sectoral shifts: Healthcare leads the charge

For the first time since early 2024, every industry in Singapore anticipates headcount expansion, a significant departure from past quarters.

Leading the hiring race is the Healthcare & Life Sciences sector, where the NEO has surged to +49%, a nine-point rise from the last quarter and 13 points higher than a year ago.

This makes Singapore the second most competitive market globally for healthcare hiring, surpassing the global average by 21 points.

Linda Teo, country manager of ManpowerGroup Singapore, observes:

Singapore’s hiring outlook reflects a stabilising labor market.

This is supported by stronger-than-expected economic growth in 2024. However, despite an improved overall outlook, a deeper analysis reveals a shift in employer sentiment.

“Fewer companies are planning to increase or decrease hiring, with nearly half (49%) now opting to maintain current workforce levels,” Teo said.

“This trend suggests a dual narrative where staffing levels are either normalising after postpandemic adjustments or employers are adopting a cautious ‘wait-and-see’ approach amid global trade tensions and economic uncertainties.”

The forces behind hiring and workforce reductions

The survey identifies three major drivers behind workforce expansion in Q2 2025:

• Company growth: 41% of employers cite expansion as the primary reason for adding staff.
• Evolving skill needs: 33% seek fresh talent to stay competitive.
• Technological advancements: 33% require additional expertise to navigate digital transformation.

Certain industries are experiencing heightened job creation due to technological advancements, particularly in:

• Transport, Logistics, and Automotive: 56% of employers in this sector plan to expand their workforce.
• Communication Services: 36% expect hiring growth.
• Consumer Goods & Services and Financials & Real Estate: Both report 35% hiring intentions.

On the flip side, economic headwinds continue to shape workforce reductions:

• Economic challenges: 39% of employers attribute staffing cuts to financial pressures.
• Restructuring and downsizing: 36% cite internal changes.
• Automation: 31% report job losses due to process automation.

Teo highlights the duality of technology’s impact on Singapore’s labour market. “Technological advancements, such as AI, are a key factor in reshaping Singapore’s workforce landscape,” she said.

“On one hand, the demand for specialised skills related to tech advancements drives job creation, prompting sectors such as transport, logistics, and automotive to innovate and create new roles.

“On the other hand, automation is also streamlining some functions. The dual impact where some jobs are lost while new ones are created, underscores the need for businesses to prioritise upskilling and strategic planning to thrive in an AI-driven economy,” Teo said.

Also Read: Half of Singaporean workers unhappy

Asia-Pacific hiring trends: A regional powerhouse

Beyond Singapore, the Asia-Pacific region continues to lead global hiring sentiment, reporting the strongest regional NEO at 30%, a three-point rise quarter-over-quarter and year-over-year.

India takes the top spot globally, with a NEO of 43%, signalling strong business confidence.

Tech-driven hiring remains a dominant theme across the region, with Taiwan (39%) and India (38%) leading in job creation linked to technological advancements.

Singapore’s hiring outlook presents two parallel narratives – one of growth and opportunity, particularly in tech-driven sectors, and another of cautious stability, as businesses hedge against global uncertainty.

As employers tread carefully, maintaining a future-ready workforce through upskilling and adaptability will be key to navigating economic shifts and technological disruptions.