Singapore's Hiring Outlook Hits 5-Year Low as AI Reshapes Workforce
Source: Vulcan Post
Singapore's hiring outlook has dropped to its weakest level since Q4 2021, with only 35% of employers planning to hire in Q3 2026. Meanwhile, 66% of employers say they would pay a premium for AI literacy skills, underscoring how the AI shift is reshaping hiring priorities even as overall headcount stalls.
Singapore's hiring outlook has fallen to a five-year low, with only 35% of employers planning to increase headcount in the third quarter of 2026. The Net Employment Outlook (NEO) dropped to 13%, down 11 points from the previous quarter and from the same period last year, according to ManpowerGroup's latest survey of 599 employers. It's the weakest reading since Q4 2021, when the pandemic had pushed the outlook into negative territory.
The caution spans most sectors. Finance and Real Estate actually recorded a negative NEO of -2%, meaning more firms plan to cut staff than hire. The Technology and IT sector held steady — the only industry to maintain its outlook quarter-on-quarter — but overall, 41% of employers said they would keep headcount unchanged, with 27% specifically citing the need for greater clarity on economic conditions before committing to new hires.
Yet within that cautious picture, there is a clear bright spot: AI skills. 66% of Singapore employers said they would pay a premium for AI literacy — knowing how to use AI tools — and 64% would pay more for AI model and application development skills. The public sector and health services led in willingness to pay for AI literacy (78%), while information sector firms topped the list for AI development skills. This tracks with the broader trend of AI salaries in Singapore climbing 15-25% over the past year, even as overall wage growth has slowed to 4.9%.
Why it matters for Singapore: The data paints a two-speed labour market. Overall hiring is cooling as global uncertainty and restructuring take hold, but the AI segment is red-hot. For Singaporeans, the message is clear: AI literacy is no longer a nice-to-have. Employers are pulling back on general headcount while actively competing for AI talent at premium wages. The divide between those with AI skills and those without is becoming the defining axis of Singapore's job market.