Employers in Singapore take cautious hiring stance as global trade uncertainty persists

Employers in Singapore are navigating a cooling job market with a cautious approach to hiring and a growing reliance on flexible workforce strategies, according to the latest ManpowerGroup Employment Outlook Survey.

The survey, which polled 524 employers on their Q4 2025 hiring plans, revealed a Net Employment Outlook (NEO) of +20%, a decline of 17% from Q3 2025 and 31% year-on-year, signalling a more tempered hiring sentiment amid ongoing global trade uncertainties.

The NEO, a key indicator of labour market trends calculated by subtracting the percentage of employers anticipating staff reductions from those planning to hire, showed that 45% of employers in Singapore intend to maintain current staffing levels, 37% plan to hire, and 17% expect to reduce headcount in the final quarter of 2025.

Employers cited several reasons for maintaining staffing levels. Over a third (38%) believe their current teams are sufficient to meet business goals, while 29% noted a lack of major projects or expansions. Another 29% are prioritising staff retention, and an equal percentage are adopting a wait-and-see approach due to economic uncertainty.

Linda Teo, Country Manager of ManpowerGroup Singapore, commented, “Employers in Singapore are taking a measured approach to hiring amid ongoing global trade uncertainties. Many are choosing to maintain current staffing levels, confident that their existing teams can meet business goals while they monitor economic developments.”

Despite the overall softening hiring sentiment, Singapore’s transport, logistics, and automotive sector remains a bright spot, ranking second globally for employment expectations and surpassing the sector’s global average by 24 points. This strength is attributed to Singapore’s pivotal role as a global logistics hub, which sustained momentum depends on evolving global trade dynamics.

The survey also highlighted a strategic shift towards workforce flexibility. Nearly a third of employers (32%) are utilising temporary employees for specialised short-term tasks, closely aligning with the 29% relying on permanent employees for similar roles. Temporary employees are also increasingly used for seasonal or surge support (34%), compared to 30% for permanent employees. However, the core functions such as operational support (59%), administrative tasks (51%), and customer service (51%) continue to rely heavily on permanent employees.

However, attracting qualified candidates remains a significant hurdle, with 50% of employers identifying it as their top challenge, followed by difficulties in filling complex technical roles (34%) and improving candidate experience (30%). Despite these challenges, 58% of employers expressed confidence in their hiring processes, with only 5% rating them as poor.

READ MORE: Organisations in Singapore brace for slower hiring and wage growth

Retention strategies are also evolving, with 56% of employers emphasising work-life balance and manageable workloads as the most effective approach. This focus is particularly pronounced in the financial and real estate sectors, where 67% of employers prioritise work-life balance to retain talent.

“We’re seeing a shift in how Singapore’s employers are approaching workforce planning,” Teo added. “The growing use of temporary talent alongside continued reliance on permanent employees reflects a strategic rebalancing—one that blends stability with flexibility to help organisations stay competitive in today’s volatile environment.”

Across the Asia-Pacific and Middle East, hiring outlooks remain robust, with the region leading globally at +28%, unchanged from the previous quarter and up 22% year-over-year. The UAE (+45%) tops global rankings, followed by India (+40%) and China (+34%). Hong Kong (+6%) remains the region’s most cautious market.