Nearly Half of Singapore Employees Fear AI and Cost-Cutting Will Cost Them Their Jobs

Nearly half of Singapore workers expect their jobs to be affected by restructuring, automation or cost-cutting in 2026, according to Morgan McKinley's latest Workplace Trends Report. At 49%, the figure far exceeds the global average of 37%, signalling that job insecurity in Singapore is running well ahead of sentiment in other developed markets surveyed.

The finding lands against a mixed labour market backdrop. Singapore's total employment rose by 9,400 in Q1 2026 — the 18th consecutive quarter of growth since late 2021 — but larger employers have grown markedly more cautious. Ministry of Manpower data shows retrenchments climbed to their highest quarterly level since 2023, while job vacancies have been declining, pointing to a cooling hiring environment beneath the headline expansion numbers.

The report, based on a late-2025 survey of 2,799 employees and 214 employers across multiple markets, also revealed that Singapore is one of the world's most office-centric workforces. Some 37% of employees here work from the office five days a week — more than double the global average of 17% and second only to Hong Kong at 60%. Yet globally, only 9% of workers would choose full-time office work if given the option, suggesting a persistent gap between corporate policy and employee preference in Singapore.

Among employees who fear job loss, 85% said they would start looking for a new role, while 64% said they would invest in new skills or additional qualifications — a pattern that suggests upskilling and career mobility are being treated as primary defences against AI-driven disruption. The technology sector's ongoing restructuring, including recent layoffs at Shopee, TikTok, and other major Singapore employers, has likely amplified the sense of vulnerability even among workers whose roles are not directly threatened by automation today.

Why it matters for Singapore: The 12-point gap between Singapore's job-loss anxiety and the global average reflects a workforce that is more exposed to global tech restructuring and more aware of AI's accelerating capabilities. With 42.2% of Singapore workers in AI-exposed occupations — the highest share in ASEAN according to a separate ILO report released this week — the pressure on employers and policymakers to manage the transition transparently has never been greater. The Morgan McKinley data suggests Singaporeans are not waiting for reassurance; they are already planning their next move.