SINGAPORE: The city-state’s job market for the next quarter is a mix of optimism and caution, as businesses focus on workforce stability amidst a shifting global economy. The latest ManpowerGroup Employment Outlook Survey featured in an article from People Matters Global shows a steady hiring sentiment, though organisations are keeping a close watch on economic normalisation and external uncertainties.
The study, which surveyed 525 employers, reveals that 39% of businesses plan to hire in the next quarter, while 12% anticipate staff reductions. Interestingly, nearly half—49%—of employers expect no change in headcount, signalling a growing preference for maintaining workforce stability. The Net Employment Outlook (NEO), a key indicator of hiring confidence, stands at +27%, marking a two-point increase from the previous quarter and a three-point rise from the same time last year.
For the first time since early 2024, all industries in Singapore are forecasting headcount expansion, a significant shift in the hiring climate. The Healthcare & Life Sciences sector leads the charge, with an impressive NEO of +49%, reflecting a nine-point increase from the last quarter and a 13-point rise year-over-year. This makes Singapore the second most competitive market globally for healthcare hiring, surpassing the global average by 21 points.
Linda Teo, country manager for ManpowerGroup Singapore, underscores that Singapore’s hiring outlook is reflective of a stabilising labour market bolstered by stronger-than-expected economic growth in 2024. However, a deeper look at the data reveals a nuanced shift in employer sentiment, as fewer companies plan to increase or decrease their workforce. “Nearly half of the employers (49%) are choosing to maintain current staffing levels,” Teo notes, “which suggests that companies are either stabilising after post-pandemic adjustments or taking a more cautious ‘wait-and-see’ approach in the face of global economic uncertainties and trade tensions.”
The survey identifies three primary drivers of workforce expansion in Q2 2025:
- Company growth: 41% of employers are hiring to support business expansion.
- Evolving skill needs: 33% are recruiting to meet changing talent demands and remain competitive.
- Technological advancements: 33% are requiring specialised skills to navigate digital transformation.
Technological innovation continues to be a major catalyst for job creation, particularly in sectors such as transport, logistics, and automotive, where 56% of employers plan to expand their workforce. Other sectors like communication services (36%), consumer goods & services, and financials & real estate (35%) also report significant hiring intentions.
However, economic pressures are prompting workforce reductions. A considerable portion of employers (39%) cite financial challenges as the reason for staff cuts, while 36% point to restructuring and downsizing. Additionally, 31% report job losses driven by automation.
Teo emphasises the dual impact of technology on Singapore’s labour market. “Advancements in technology, especially AI, are reshaping the workforce,” she explains. “On one hand, the demand for specialised tech skills drives job creation, particularly in sectors like transport and logistics. On the other hand, automation is streamlining operations and leading to job reductions in some areas.” She adds that businesses must prioritise upskilling and strategic workforce planning to stay ahead in an increasingly AI-driven economy.
The broader Asia-Pacific region continues to outperform global hiring trends, with a regional NEO of 30%, a three-point increase from both the previous quarter and year-over-year. India stands out globally with a NEO of 43%, signalling strong business confidence in the region. Taiwan (39%) and India (38%) lead the way in tech-driven job creation, underscoring the growing demand for digital skills.
In Singapore, the employment outlook presents two concurrent narratives – one of growth and opportunity, particularly in technology-driven sectors, and another of cautious stability, as employers remain vigilant amid global economic uncertainty.
As businesses navigate this dynamic landscape, the key to thriving in the face of technological disruption and economic challenges will be fostering a future-ready workforce through continuous upskilling and adaptability.