Employers in Singapore take more selective approach to hiring in Q4 2026

Employers in Singapore are becoming more cautious and selective in their hiring decisions, with nearly half planning to keep headcount unchanged in Q4 2026, according to the latest ManpowerGroup Employment Outlook Survey.

The survey found that Singapore’s seasonally adjusted Net Employment Outlook (NEO) stands at +13% for Q4 2026, unchanged from the previous quarter but seven percentage points lower than a year earlier. The figure also trails the Asia-Pacific and Middle East (APME) regional average of +33% and the global average of +29%.

Among the 651 employers surveyed, 47% said they expect to maintain their current staffing levels in Q4, up from 41% in the previous quarter. Meanwhile, 32% plan to increase headcount, down three percentage points from the previous quarter, while 19% expect to reduce staffing levels. Another 2% remain uncertain about their hiring plans.

The findings suggest that employers are moving away from broad-based workforce expansion and instead focusing recruitment on roles that address specific business and capability needs.

“Organisations remain prepared to invest in talent where there is a clear business need, but many are becoming more disciplined in how they allocate headcount,” said Linda Teo, Country Manager of ManpowerGroup Singapore.

She added that employers are increasingly prioritising hires that support transformation, address critical capability gaps and strengthen long-term competitiveness as business priorities evolve and operating conditions remain uncertain.

Hiring activity remains strongest in trade and logistics, which recorded a hiring outlook of +22%, followed by finance and insurance at +20% and tech and IT services at +18%.

At the same time, employers are taking longer to fill some vacancies. One-third (33%) said it takes longer to fill roles than it did a year ago, while 42% reported no change and 24% said vacancies are being filled more quickly.

Candidate-job mismatch emerged as the leading obstacle among employers experiencing longer hiring timelines, cited by 43%. This was followed by a lack of candidates with the required skills (35%) and a shortage of qualified candidates in the local market (29%).

READ MORE: More employers in Singapore set to hold wages flat in 2027

Despite the more selective hiring environment, early-career talent remains part of workforce planning. Some 37% of employers reported increasing early-career hiring compared with a year ago, while 39% reported no change and 22% reported a decline.

Among employers reducing early-career hiring, AI-driven automation was the most commonly cited reason (38%), followed by cost pressures driving a preference for more experienced talent (34%) and an overall reduction in hiring activity (30%).

The survey indicates that while organisations are becoming more disciplined about headcount, they continue to invest in talent where it matters for future workforce needs.