Singapore Hiring Intentions Cool to Late-2021 Levels, but AI and Tech Roles Remain in Demand
Source: The Independent Singapore
Singapore hiring confidence has fallen to its weakest level since late 2021, with just 35 percent of employers planning to increase headcount in the third quarter of 2026. But beneath the cautious headline numbers lies a clear exception: employers are still aggressively competing for.
Singapore hiring confidence has fallen to its weakest level since late 2021, with just 35 percent of employers planning to increase headcount in the third quarter of 2026. But beneath the cautious headline numbers lies a clear exception: employers are still aggressively competing for AI-literate talent, with 66 percent willing to pay a salary premium for workers who can effectively use AI tools. The findings come from ManpowerGroup Singapore Employment Outlook Survey, which gathered responses from 599 employers across the city-state between April and May 2026.
The Net Employment Outlook — the share of employers planning to hire minus those expecting reductions — dropped 11 percentage points quarter-on-quarter to 13 percent, significantly below the Asia-Pacific average of 28 percent. This marks the weakest hiring outlook since the tail end of the pandemic-era labour market disruption in late 2021. The manufacturing sector posted the strongest hiring intentions of any industry, while financial services and real estate was the only major sector to report a negative outlook, with more firms planning cuts than hires.
Technology and information technology hiring held steady quarter-on-quarter, making it the most stable sector in the survey. The data paints a picture of a labour market that has become more selective but remains open: 41 percent of employers plan to maintain current staffing levels, while 22 percent anticipate reductions. Among those holding steady, 27 percent said they were delaying hiring decisions until economic conditions become clearer, according to Linda Teo, Country Manager of ManpowerGroup Singapore.
Beyond AI literacy, employers continue to value traditional soft skills. Some 67 percent said they would pay more for candidates with critical thinking and problem-solving abilities. Communication, teamwork, and collaboration were also highly ranked, signalling that AI proficiency alone is insufficient. The survey notably found that AI development skills — building models and applications — are in strongest demand within the information sector, professional services, and financial institutions.
Why it matters for Singapore: The cooling hiring climate reflects broader global economic uncertainty, but the sustained premium on AI skills confirms a structural shift in Singapore labour market. Workers who combine AI literacy with strong critical thinking and communication abilities will command the highest premiums. The Government upskilling push through SkillsFuture and the recently launched AI4SGA initiative arrives at the right moment, as Singapore positions itself to supply the AI-fluent workforce that employers across every sector are demanding.