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

Nearly half of Singapore's employers plan to maintain current staffing levels through the final quarter of 2026, according to a recent ManpowerGroup Employment Outlook Survey released on Tuesday. The survey found that the seasonally adjusted net employment outlook for Q4 2026 stands at 13%, unchanged from the previous quarter but down seven points compared to the same period last year. This softest hiring forecast since Q4 2021 highlights a growing selectivity among Singaporean firms.

Forty-seven percent of the 651 surveyed employers expect to keep headcount steady between October and December, up six percentage points from Q3. Thirty-two percent plan to add staff, down from 35%, while 19% anticipate reductions, and 2% remain undecided. Linda Teo, country manager of ManpowerGroup Singapore, noted that organizations are becoming more disciplined in allocating headcount, investing only where there is a clear business need.

The construction sector leads the hiring outlook at 22%, followed by finance and insurance (20%) and tech and IT services (17%). Sectors with weaker hiring intentions include information (7%) and professional, scientific, and technical services (6%).

Medium-sized companies with 10 to 49 employees reported the strongest hiring intentions (24%), while large enterprises with 5,000 or more employees had a cautious 2% outlook. The longer hiring timelines and candidate-job mismatches are becoming significant challenges for employers. A third of firms reported that filling vacancies takes longer than a year ago, with candidate-job mismatch cited as the top obstacle (43%), followed by a lack of required skills (35%) and local talent shortages (29%).

Despite the cautious hiring outlook, early-career hiring remains relatively stable, with 37% of companies increasing entry-level intake compared to last year, while 39% hold steady.