Employers in Singapore hold firm on hiring but pay up for AI and critical thinking skills

Singapore’s hiring momentum has cooled sharply heading into Q3 2026, even as employers signal a clear willingness to pay more for AI and critical thinking capabilities, according to the latest ManpowerGroup Employment Outlook Survey.

The seasonally adjusted Net Employment Outlook (NEO) for Singapore stands at +13% for Q3 2026, down 11 points both quarter-on-quarter and year-on-year. It is the weakest reading since Q4 2021, when the outlook sat at -2%, and trails both the Asia-Pacific and Middle East regional averages of +28% and the global average of +26%.

Of the 599 employers surveyed about their Q3 hiring plans, 35% intend to increase headcount, 41% expect to maintain current staffing levels and 22% anticipate reductions, with the remaining 2% unsure. Among those holding steady, 38% said their existing headcount was sufficient to meet business goals, while more than a quarter (27%) reported waiting to see how the economy develops before committing – the second most cited reason for maintaining staff levels.

“Employers in Singapore are taking a more cautious approach to hiring this quarter, with many choosing to hold steady on headcount until there is greater clarity on geopolitical conditions,” said Linda Teo, Country Manager of ManpowerGroup Singapore. “This does not mean employers are standing still. Instead, hiring decisions are becoming more selective and deliberate, with investments increasingly directed toward skills that deliver the greatest impact.”

Manufacturing remained the strongest-hiring sector with an NEO of +25%, slipping one point quarter-on-quarter and two points year-on-year.

READ MORE: Singapore hiring sentiment rises in Q2 2026 amid AI adoption and skills demand

The survey also examined which capabilities employers would pay a premium for in the coming quarter. Among technical skills, AI literacy led at 66% followed by AI model and application development at 64% and traditional IT and data skills at 56%. Demand for AI literacy was highest in the Public Sector, Health and Social Services (78%); Professional, Scientific and Technical Services (72%); and Tech and IT Services (69%). For AI model and application development, employers in Information (76%); Professional Scientific and Technical Services (76%); and Finance and Insurance (71%) were most willing to pay more.

On the human side, critical thinking and problem-solving, communication, collaboration and teamwork topped the list, each cited by 66% of employers, with leadership and social influence close behind at 64%.

Teo said the findings pointed to a deliberate redirection of talent investment. “Organisations are placing greater emphasis on building capability in areas that support transformation and execution, particularly AI-related skills alongside core human strengths such as problem-solving, collaboration, and leadership. This reinforces the importance of a human-first, digital-always approach—centring workforce strategy on people, while leveraging technology to amplify human capability.”