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

Employers in Singapore are showing renewed confidence in hiring for Q2 2026, even as market volatility continues to influence workforce strategies, according to the latest ManpowerGroup Employment Outlook Survey.

The seasonally adjusted Net Employment Outlook (NEO) for Q2 2026 stands at +24%, rebounding from a two-quarter decline that saw the outlook fall from +24% in Q3 2025 to +14% in Q1 2026. Among the 538 employers surveyed, 45% plan to increase headcount, 33% intend to maintain current staffing levels, and 21% expect to reduce employees, while just 1% remain uncertain.

The information sector is leading the hiring charge, with 58% of employers planning to expand their workforce, resulting in a sector outlook of +41%. “The improvement in hiring sentiment this quarter reflects employers’ continued efforts to adapt to evolving business needs,” said Linda Teo, Country Manager of ManpowerGroup Singapore.

She noted that organisations are not only expanding into new areas but also actively seeking fresh skills to remain competitive. Technological advancements are particularly driving demand in the information sector, where organisations are deepening their focus on technology-led transformation and future capability building.

The survey also found that organisations in Singapore are increasingly turning to AI in their workforce strategies, with 82% of employers already using AI for recruitment, onboarding, or training. This places Singapore slightly above the regional Asia-Pacific and Middle East average of 81%, and well ahead of the global average of 67%.

READ MORE: Are skills defining success in Singapore’s 2026 workforce?

Adoption is strongest in utilities and natural resources, information, and manufacturing, while lower usage is seen in professional, scientific and technical services, the public sector and health and social services, and hospitality. Despite widespread adoption, only 4% of employers feel AI fully meets expectations in hiring and training, and 10% report no positive return on investment to date. Privacy and regulatory concerns, insufficient company training, and gaps in employees’ AI skills remain the most significant barriers.

“While many employers are already using AI in hiring and training, the next step is ensuring those tools deliver meaningful returns,” Teo said. “That means investing in workforce readiness today – from building AI literacy and strengthening governance to addressing privacy and skills gaps – so organisations are positioned to unlock greater value from AI in the months ahead.”

Across the Asia-Pacific and Middle East, the survey revealed a strong regional outlook of +38%, leading all global markets with a seven-point increase from the previous quarter. India (+68%) continues to anchor regional confidence and posted the highest outlook globally, while Vietnam, appearing for the first time in the survey, recorded a +47%. Hong Kong (+11%) remained the most cautious market, though it showed a nine-point improvement from the previous quarter.