Singapore employers grow selective as nearly half plan to hold headcount steady in Q4: survey

[SINGAPORE] Employers in Singapore are taking a more selective approach to recruitment for the final quarter of 2026, with nearly half planning to maintain current staffing levels rather than pursuing broad workforce expansions.

The latest ManpowerGroup Employment Outlook Survey released on Tuesday (Sep 8) indicated that Singapore’s seasonally adjusted net employment outlook stands at 13 per cent for Q4 2026.

The outlook remains unchanged from the previous quarter but marks a seven-point decline compared with the same period last year.

The 13 per cent figure represents the softest hiring forecast since Q4 2021 when the outlook was negative 2 per cent.

Singapore’s hiring sentiment also lags behind both the regional average for the Asia-Pacific and Middle East (33 per cent) and the global average (29 per cent).

Of the 651 employers surveyed in Singapore, 47 per cent expect to keep headcount unchanged between October and December, up six percentage points from 41 per cent in Q3.

Meanwhile, 32 per cent plan to add staff (down from 35 per cent), 19 per cent anticipate reductions, and 2 per cent remain undecided.

“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.

“Rather than pursuing broad-based workforce expansion, employers are increasingly prioritising hires that support transformation, address critical capability needs and strengthen long-term competitiveness.”

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Sector breakdown and company size

By industry, trade and logistics led the pack at an outlook of 22 per cent, followed closely by finance and insurance (20 per cent), and tech and IT services (17 per cent).

Conversely, sectors such as information (7 per cent) and professional, scientific and technical services (6 per cent) reported weaker hiring intentions.

Medium-sized companies with 10 to 49 employees posted the strongest hiring intentions (24 per cent), whereas large enterprises with 5,000 or more employees reported a cautious 2 per cent outlook.

Hiring timelines and early-career trends

As companies tighten hiring criteria, finding suitable candidates is taking longer. A third of employers reported that filling vacant roles takes longer than it did a year ago, while 42 per cent noted no change in timelines.

Among firms experiencing hiring delays, the top obstacle cited was candidate-job mismatch (43 per cent), followed by a lack of candidates with required skills (35 per cent) and local talent shortages (29 per cent).

Early-career hiring remains relatively stable, with 37 per cent of companies boosting entry-level intake compared to last year and 39 per cent holding steady.

However, among the 22 per cent of employers who reduced early-career hiring, key drivers included AI-driven automation reducing entry-level tasks (38 per cent), cost pressures favouring experienced talent (34 per cent), and overall hiring pullbacks (30 per cent).

“Employers are navigating a hiring environment where finding the right candidate is becoming increasingly complex,” said Teo.

“As skill requirements evolve and expectations on both sides of the hiring process shift, achieving the right match is taking longer for some organisations. At the same time, continued demand for early-career talent suggests employers remain focused on building sustainable talent pipelines and developing the skills they will need in the years ahead,” she added.