SINGAPORE – With every hire seen as a critical investment, Singapore’s labour market continues to encounter the challenges of a tight hiring environment.

Across industries, HR leaders are grappling with the dual pressures of attracting top talent and retaining key performers. The situation is particularly acute in Singapore, where a low unemployment rate and robust economic activity underscore a persistent war for talent. The latest ManpowerGroup Employment Outlook Survey paints a picture of cautious optimism amid this competitive landscape.

Singapore sees widespread optimism in hiring

While employers globally are adopting a “wait and see” stance amid geopolitical tensions and economic uncertainties, Singapore remains an outlier in resilience. The survey of 525 employers reveals that 45% plan to hire in the first quarter of 2025, while 20% anticipate reductions, resulting in a Net Employment Outlook (NEO) of +25%.

Though slightly weaker than last year, this figure remains a testament to the nation’s stable and dynamic labour market.

However, amid this overall optimism, one sector has emerged as a shining star: Transport, Logistics, and Automotive. With an NEO of +67%, this sector places Singapore at the top globally, far outstripping the global average by 43 points.

This stellar performance is underpinned by Singapore’s status as a critical hub in Asia, bolstered by shifts in trade routes and the normalisation of shipments post-pandemic.

Linda Teo, the country manager of ManpowerGroup Singapore, aptly notes that “Singapore’s role as a safe and reliable hub in Asia is becoming increasingly important.” Such economic shifts not only signal a bright future for certain sectors but also demand that HR leaders rethink strategies to adapt to these evolving trends.

The NEO for Transport, Logistics, and Automotive is the highest recorded since tracking began in 2010, underscoring a thriving sector.

This surge reflects Singapore’s unique ability to capitalise on its geographical and economic advantages, making it a critical node in global trade.

For HR professionals in the sector, the challenge lies in scaling talent pipelines to match this unprecedented demand while maintaining a focus on skills that align with technological advancements and sustainability.

While Transport steals the limelight, 8 out of 9 sectors in Singapore reported positive hiring intentions. This widespread optimism provides HR leaders with an opportunity to adopt strategic workforce planning, ensuring their organisations are future-ready in an unpredictable environment.

Also Read: Why Singapore is raising salary benchmarks for Employment Pass

Singapore’s progress in gender equality and pay equity

Beyond employment outlooks, the survey also sheds light on the strides organisations are making in diversity and inclusion (D&I). Progress in gender equality is particularly notable, with 74% of employers reporting they are either close to or have achieved gender parity – up significantly from 55% in 2024.

Similarly, 61% of companies are advancing their pay equity initiatives, marking a 6% improvement over the previous year.

These gains represent strategic imperatives for organisations to foster innovation and improve decision-making.

As Teo points out: “Diversity and inclusion are not just moral imperatives; they’re also smart business strategies.” Companies with robust D&I initiatives are better positioned to unlock the collective potential of diverse teams, leading to more innovative problem-solving and a stronger bottom line.

How leadership culture in Singaporean workplaces can inspire loyalty

The survey highlights the top strategies driving progress in recruitment and retention, including:

• Supporting employee well-being (43%)
• Fostering trusting relationships (43%)
• Measuring the impact of flexibility policies (41%)

These findings reflect a growing recognition that employee satisfaction is no longer a “nice to have” but a business imperative.

HR leaders must act as architects of organisational culture, building workplaces that not only attract talent but also inspire loyalty and engagement.

Regional comparisons: A balancing act across Asia-Pacific

Zooming out to the Asia-Pacific region, Singapore stands tall among hiring giants like India (40%) and China (29%), with a robust +25% NEO. Yet, the cautionary tale lies with Hong Kong, reporting a tepid +6%, reflecting the uneven recovery across the region.

For HR leaders, this proves the importance of benchmarking and adapting strategies to stay ahead in a region of diverse economic conditions.

Singapore’s resilience despite uncertainties

As Singapore braces for potential headwinds – ranging from global economic uncertainties to the implications of a Trump administration in the US – employers must strike a delicate balance between caution and ambition.

HR leaders are uniquely positioned to steer their organisations through these uncharted waters, acting as both strategists and stewards of culture.

As the labour market shifts, the findings of the ManpowerGroup survey serve as a compelling reason to re-examine data from the talent economy, turn insights into action, embrace diversity, and foster resilience.

In doing so, HR leaders can ensure their organisations not only weather the storm but emerge stronger on the other side.