Singapore’s hiring sentiments stable amid global uncertainty

Singapore’s labour market remains steady as employers adopt a cautiously optimistic stance, according to the latest ManpowerGroup Employment Outlook Survey. Despite a slight decline from the previous quarter, hiring plans for the next quarter suggest resilience in the face of global economic uncertainties.

Out of 525 employers surveyed in Singapore, 45% intend to increase headcount, 20% foresee staffing reductions, and 34% expect no change. After seasonal adjustments, the Net Employment Outlook (SEO)—an indicator of hiring sentiment—stands at +25%, down from 4% in the previous quarter and year-over-year.

The NEO is derived by subtracting the percentage of employers planning reductions from those anticipating increases, offering a snapshot of labour market trends.

Eight out of nine sectors surveyed expect to increase headcount, with the transport, logistics, and automotive sectors leading the charge. The sector’s NEO surged to +67%, marking a 22% increase from the prior quarter and 26% from Q1’2024. This is the highest recorded NEO for the sector since tracking began in Q1’2010 and positions Singapore as a global leader, outperforming the global average by 43 points.

Linda Teo, Country Manager of ManpowerGroup Singapore, attributed this growth to Singapore’s strategic importance in Asia. She explained that geopolitical tensions and shifts in trade routes, couples with the normalisation of shipments transiting through Singapore, are driving job creation in the sector. Teo noted that while hiring intentions have slightly slowed from the previous quarter, the local labour market remains resilient, serving as a source of stability during uncertain times.

The survey also highlighted encouraging progress in diversity and inclusion efforts within Singapore’s corporate landscape. A growing number of organisations are achieving or nearing gender equality, with 74% of employers reporting progress, compared to 55% in 2024. Additionally, 61% of organisations are advancing their pay equity initiatives, reflecting a 6% improvement from the previous year. These advancements are driven by strategies such as supporting employee wellbeing, fostering trust within teams, and implementing flexible work policies.

READ MORE: Singapore’s labour market sees growth and challenges in 2024

Teo emphasised that diversity and inclusion are now seen as essential to business success, rather than optional ideals. She noted that organisations are recognising the value of creating diverse and inclusive workplaces, which not only foster innovation but also enhance decision-making and drive better business outcomes.

Regionally, the Asia-Pacific continues to exhibit strong hiring sentiments, with the second-highest regional outlook globally at +27%. While hiring expectations in the region remain unchanged from the previous quarter, there has been a slight dip of three percentage points compared to the same time last year. India, China, and Singapore are leading the region, with the strongest hiring intentions reported in these markets. Conversely, Hong Kong remains the most cautious, with the lowest hiring outlook at just 6%.