Over half of employers plan hiring freeze, wage moderation despite better outlook: SNEF poll

A recent survey by the Singapore National Employers Federation (SNEF) reveals that over half of employers plan to halt hiring and possibly moderate wages in 2027, despite a modest improvement in their business outlook for the year. The survey, conducted between June and August 2026, polled 320 employers across 20 industries, employing nearly 160,000 workers.

While the business outlook for the year appears better, the SNEF noted that it remains highly uneven. Some sectors, supported by strong demand and technology advancements, are thriving, while others, particularly retail trade and food and beverage services, are struggling due to weaker consumer demand and higher operating costs.

This disparity highlights the K-shaped nature of Singapore's economy, where sectors heavily reliant on local demand and employing lower-wage workers face considerable business and manpower challenges.

The survey revealed a cautious approach to hiring, with 54% of employers planning no increase in headcount for 2027, down from 58% in the previous year. Nevertheless, a larger share of companies (40%) intends to hire in 2027, compared to 33% in 2026. Conversely, the number of employers planning headcount reductions (6%) has decreased from 8% in the last year's survey.

On the wage front, 51% of employers plan to implement wage moderation or freezes in 2027, up three points from 2026. The remaining 49% intend to raise wages, a slight decrease from 51% in 2026. However, this indicates ongoing caution among employers, especially smaller and medium-sized enterprises (SMEs). For those employing lower-wage workers, 86% plan to maintain or increase wages in 2027, down from 96% in 2026. Only 14% are considering a wage freeze for this group.