More contract hiring, higher foreign labour costs: The trends shaping Singapore’s manpower landscape in 2026
Gloomier hiring sentiment persists despite economy ending year on better-than-expected note
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[SINGAPORE] A rise in contract or project-based roles is among several trends expected to shape the labour market in 2026, as hiring sentiment cools sharply in the uncertain economic climate, said watchers.
Chua Han Teng, DBS senior economist, said: “Firms are likely holding a prudent stance for 2026, due to still-elevated global economic and trade policy uncertainties, even with some de-escalation in tariff tensions since Liberation Day.”
He expects Singapore’s overall unemployment rate to inch up marginally to a “still-low 2.2 per cent” in 2026, from 2 per cent in 2025.
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