Fewer Singapore firms plan job cuts, but skills mismatch a growing concern: AmCham survey

[SINGAPORE] Most employers in Singapore plan to keep headcount steady, but a growing mismatch in skills is making it harder to hire, a survey by the American Chamber of Commerce in Singapore (AmCham) has found.

In AmCham’s 2026 Manpower Survey, developed with Gallup, 46 per cent of respondents cited skills mismatch as a key manpower challenge, up from 34 per cent in 2025.

Meanwhile, 41 per cent of respondents reported difficulty hiring local talent.

The findings were released on Wednesday (Nov 11) at AmCham’s annual Human Capital Conference.

On hiring plans, 61 per cent of respondents plan to maintain headcount and 26 per cent expect to expand. Another 13 per cent are planning reductions, down from 22 per cent in 2025.

Artificial intelligence is shaping how firms respond to productivity and skills issues, the survey showed. About 68 per cent of respondents expect AI to raise employee productivity, and 80 per cent are already upskilling existing staff.

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Among those anticipating AI-driven changes to job skills, 90 per cent see upskilling as the answer.

Access to foreign talent also remains a concern. Only 35 per cent of respondents said that they are confident they can get all the talent they need under the Complementarity Assessment Framework, which governs Employment Pass applications.

Cost of living is also a factor, with 75 per cent citing it as a key consideration when relocating senior global talent to Singapore.

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On workplace arrangements, 66 per cent of respondents prefer hybrid or flexi-place work. Most – 71 per cent – said that they are very confident about complying with the Workplace Fairness Act.

AmCham CEO Dr Lei Hsien-Hsien noted that the results underline the need to invest in talent development and lifelong learning.

“Singapore’s continued competitiveness depends on developing a workforce with the skills, adaptability and regional experience to meet evolving business needs,” she explained.

She added that the chamber works with businesses, policymakers and educators to strengthen talent pipelines. In 2025, AmCham committed to supporting four convocation awards through 2028 for graduates of the Singapore University of Social Sciences.

Gallup regional director Kanika Singh, who presented the findings, said that upskilling investments will pay off only if company culture supports them and managers are equipped to drive them.

“The effectiveness of those investments will rely on how well the organisation’s culture enables them,” she pointed out, adding that Gallup is working with firms in Singapore on culture and manager capability.

The survey suggests that employers are not retrenching, but they are finding it harder to hire people with the right skills. That makes retraining existing staff a key part of how firms plan to manage their workforce.