SINGAPORE: While Singapore’s job market held out in 2025, albeit with some anxieties over fresh graduate employment, jobseekers are expected to enter a cautious hiring market in 2026, analysts said.
Giving their take on the 2026 job outlook, analysts anticipated more selective, skills-based recruitment in the year ahead instead of broad headcount expansion. Some also foresaw a further shift towards contract roles as employers remain cost-conscious.
Singapore’s economy grew 4.8 per cent in 2025, beating expectations in a year that saw resident employment continue to grow and the proportion of workers in permanent roles hit a record high.
While the growth figure signals overall economic health, hiring confidence going into 2026 is still impacted by geopolitical tensions, inflationary pressures and supply chain risks, said Ms Linda Teo, country manager of ManpowerGroup Singapore.
“Against this backdrop, hiring is likely to be selective, focused on roles and skills that support digitalisation and structural transformation,” she said.
ManpowerGroup’s survey of about 500 employers found a net employment outlook of 15 per cent for the first quarter of 2026 – the lowest since the first quarter of 2022.
This figure refers to the difference between the percentage of employers expecting to increase their staff sizes (32 per cent) and those anticipating staff reductions (18 per cent), after seasonal adjustment. A lower number indicates weaker hiring intentions.
Ms Teo anticipated many organisations combining a core team of permanent employees with on-demand contract or freelance talent, in order to balance the needs for agility and cost efficiency.
Echoing this, Robert Walters Singapore country manager Kirsty Poltock said the workforce will see permanent roles matched with an increasing number of contract positions and project-based hiring.
Maybank Securities economist Brian Lee expected employment to grow by about 60,000 jobs in 2026, similar to a forecast of 65,000 jobs for 2025, as economic growth slows from last year’s “exceptional” pace.
“Labour demand should remain supported in 2026 given the resilient economy, although we don’t expect a pickup in employment growth as employers remain cautious due to lingering global trade and geopolitical uncertainties,” he said.
DBS Bank senior economist Chua Han Teng expected the overall unemployment rate in 2026 to rise slightly to a “still low” 2.2 per cent, from a projected 2 per cent in 2025.
Layoffs are likely to be contained, with firms more likely to adjust headcount gradually as the labour market remains tight in certain areas, he said.
In terms of wages, cost management is expected to remain a priority in 2026, and wage increments for those with jobs will therefore remain measured, the experts added.
“With revenues potentially coming under pressure, firms will probably choose to manage costs through downward wage flexibility and modest wage growth,” added Mr Chua.
What this means for the labour market is more targeted hiring, geared towards productivity and efficiency gains as well as innovation, according to recruitment experts.
Randstad Singapore country director David Blasco said this is likely to manifest in higher expectations from employers.
“Employers are hiring, but they are increasingly shifting entry-level roles away from routine tasks toward higher-value, technical-specific positions that can drive innovation in a digital-first environment,” he said.
However, the 2026 picture is not completely bleak, as there are many industries that are still in need of talent, experts said.
There is a sharper focus on roles that directly support growth and transformation, according to Mr Nilay Khandelwal, Michael Page’s senior managing director of Singapore and India.
This is particularly so in artificial intelligence-linked manufacturing, finance, healthcare and critical infrastructure, he said.
As for financial and insurance services and health and social services, official data showed that these industry sectors led growth in resident employment in the last quarter of 2025. Non-resident employment grew mainly in construction and manufacturing.
There were high vacancies for professionals, managers and executives (PMEs) in the information and communications, health and social services, and transportation and storage sectors due to digitalisation, ageing and logistics needs.
Looking ahead, observers saw similar trends for hiring in 2026. Across the board, they anticipated strong hiring in financial services and the digital economy.
ManpowerGroup’s employer survey found that the finance and insurance sector and information sector had the strongest hiring intentions in the first quarter of 2026. Ms Teo said this is driven by business expansion and efforts to enhance workforce diversity.
Robert Walters’ Ms Poltock expected very high demand for talent in the accounting and finance, banking and financial services, human resources and business support, sales and marketing, and technology and transformation sectors.
“Banking and finance are starting to see AI applications go from pilot phases to actual implementation, and various industries across the board are seeing AI usage increase.
“With that comes the increase in demand for professionals who are able to navigate and balance between AI usage and business needs,” she said.
Maybank’s Mr Lee expected higher employment growth in services, particularly finance and hospitality. He pointed out the government’s S$5 billion Equity Market Development Programme may catalyse jobs in the financial sector, including for fresh graduates.
Hiring is also likely to be strong in construction, given a huge pipeline of projects, while the ongoing AI boom may benefit the information and communications and electronics manufacturing sectors, he added.
Aon’s Asia Pacific director for talent advisory Sara Tiew singled out the asset management industry, where demand for talent in investment, client management, risk and compliance roles is expected to remain.
In the technology sector, digitalisation and AI adoption are fuelling demand for talent in AI, software engineering, cybersecurity and data analytics, she added.
For Randstad’s Mr Blasco, the digital economy is still a “powerhouse” creating high-value jobs, with engineering, financial services and life sciences proving especially resilient.
“We are seeing high demand for robotics and automation engineers, specialists in green financing and sustainable investing, and biomanufacturing technicians. Cybersecurity and enterprise software also remain high-priority areas,” he said.
“These sectors are doing well because they are central to Singapore’s strategy of producing high-value, tech-driven solutions for a global market.”
Michael Page’s Mr Khandelwal highlighted electronics, semiconductors and advanced manufacturing among the sectors where Singapore already has deep capabilities and will continue to lead.
“AI server demand, chip production and high-end precision manufacturing remain structural global drivers, and Singapore’s ecosystem is well positioned to capture continued growth,” he said.
He also pointed to healthcare and life sciences, noting that ageing, biomanufacturing, precision medicine and research and development remain core national priorities where continued investment fuels hiring.
Hiring will likely be weaker in sectors that depend heavily on global demand or discretionary spending, said Persol Singapore’s managing director and country head Foo See Yang.
These include some export-focused manufacturing areas, parts of traditional retail and general office support roles, he said.
Employers in these sectors are using more automation, shared services and contract staff, as well as replacing only essential roles and combining similar functions, leading to fewer vacancies and more competition for each job, said Mr Foo.
Robert Walters’ Ms Poltock agreed on softer hiring for back-office roles as well as in consumer-facing sectors like traditional retail, parts of the food and beverage industry and lifestyle services.
Consumer-facing sectors are grappling with high rental costs, rising manpower costs and tighter margins that limit their ability to grow headcount, she said.
With the exception of the electronics sector, manufacturing was still singled out by several experts who agreed that export-oriented segments may experience weaker hiring in 2026.
“Global demand remains uneven, and firms in these sectors tend to manage uncertainty by controlling headcount and investing more in automation rather than labour expansion,” said Ms Poltock.
She also painted a “more nuanced picture” in the technology sector, with subdued hiring for generalist and “non-core tech roles” and higher demand for specialised roles.
“Companies are increasingly focused on (return on investment), leading to fewer roles that do not directly support revenue growth or transformation priorities,” she said.
Similarly, Randstad’s Mr Blasco observed that employment in outward-oriented sectors like general professional services and some areas of technology has eased.
“The ‘weakness’ here isn’t necessarily a lack of business, but rather a structural shift where routine administrative tasks are being automated or moved to shared services,” he said.
The top PME vacancies in 2025 were for teaching and training professionals, commercial and marketing sales executives and software, web, multimedia and game developers and designers, according to Manpower Ministry data.
Candidates job-hunting in 2026 can now expect longer hiring cycles, recruiters said. Many firms have increased their interview stages from three to as many as five rounds, according to Michael Page’s Mr Khandelwal.
He also advised job-switching candidates to calibrate their salary expectations as pay bumps after a change of job have moderated to about 5 to 15 per cent. There may be higher ranges for niche or scarce skillsets.
Coupled with more selective employers, most recruiters expected this to continue the trend of “job hugging” they have observed among workers.
“In 2026, job changes will likely be more thoughtful as people choose roles that offer real skills growth, learning opportunities, or a better culture fit, rather than just higher pay,” said Persol’s Mr Foo.
Those looking for permanent jobs were advised to stay open to contract positions as a starting point.
ManpowerGroup’s Ms Teo said project-based or contract roles are becoming more common for accessing specialised skills.
“In many cases, strong performance in these roles can lead to permanent opportunities, offering a practical route to long-term employment,” she said.
Recruiters encouraged jobseekers to “future-proof” themselves through continuous learning, proactively developing in-demand skills like digital literacy, data analytics and AI-related competencies.
But it is equally important to demonstrate softer skills like adaptability, versatility, readiness to contribute, collaboration and problem-solving, they said.
“My best advice is to focus on what makes you uniquely human, so qualities like creativity, empathy, and critical judgment. Because as AI takes over replicable tasks, these traits become exponentially more valuable,” said Randstad’s Mr Blasco.
He also encouraged candidates not to be discouraged by job postings that seem to have “unrealistic” skills requirements, based on findings from Randstad’s 2026 talent outlook and expectations survey.
“Forty per cent of your peers feel the same way, so focus on demonstrating your transferable skills and your ability to ‘unlearn and learn’,” he said.
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Giving their take on the 2026 job outlook, analysts anticipated more selective, skills-based recruitment in the year ahead instead of broad headcount expansion. Some also foresaw a further shift towards contract roles as employers remain cost-conscious.
Singapore’s economy grew 4.8 per cent in 2025, beating expectations in a year that saw resident employment continue to grow and the proportion of workers in permanent roles hit a record high.
While the growth figure signals overall economic health, hiring confidence going into 2026 is still impacted by geopolitical tensions, inflationary pressures and supply chain risks, said Ms Linda Teo, country manager of ManpowerGroup Singapore.
“Against this backdrop, hiring is likely to be selective, focused on roles and skills that support digitalisation and structural transformation,” she said.
ManpowerGroup’s survey of about 500 employers found a net employment outlook of 15 per cent for the first quarter of 2026 – the lowest since the first quarter of 2022.
This figure refers to the difference between the percentage of employers expecting to increase their staff sizes (32 per cent) and those anticipating staff reductions (18 per cent), after seasonal adjustment. A lower number indicates weaker hiring intentions.
Ms Teo anticipated many organisations combining a core team of permanent employees with on-demand contract or freelance talent, in order to balance the needs for agility and cost efficiency.
Echoing this, Robert Walters Singapore country manager Kirsty Poltock said the workforce will see permanent roles matched with an increasing number of contract positions and project-based hiring.
Related:
Maybank Securities economist Brian Lee expected employment to grow by about 60,000 jobs in 2026, similar to a forecast of 65,000 jobs for 2025, as economic growth slows from last year’s “exceptional” pace.
“Labour demand should remain supported in 2026 given the resilient economy, although we don’t expect a pickup in employment growth as employers remain cautious due to lingering global trade and geopolitical uncertainties,” he said.
DBS Bank senior economist Chua Han Teng expected the overall unemployment rate in 2026 to rise slightly to a “still low” 2.2 per cent, from a projected 2 per cent in 2025.
Layoffs are likely to be contained, with firms more likely to adjust headcount gradually as the labour market remains tight in certain areas, he said.
In terms of wages, cost management is expected to remain a priority in 2026, and wage increments for those with jobs will therefore remain measured, the experts added.
“With revenues potentially coming under pressure, firms will probably choose to manage costs through downward wage flexibility and modest wage growth,” added Mr Chua.
What this means for the labour market is more targeted hiring, geared towards productivity and efficiency gains as well as innovation, according to recruitment experts.
Randstad Singapore country director David Blasco said this is likely to manifest in higher expectations from employers.
“Employers are hiring, but they are increasingly shifting entry-level roles away from routine tasks toward higher-value, technical-specific positions that can drive innovation in a digital-first environment,” he said.
Related:
STRONGER JOB DEMAND IN GROWTH AREAS
However, the 2026 picture is not completely bleak, as there are many industries that are still in need of talent, experts said.
There is a sharper focus on roles that directly support growth and transformation, according to Mr Nilay Khandelwal, Michael Page’s senior managing director of Singapore and India.
This is particularly so in artificial intelligence-linked manufacturing, finance, healthcare and critical infrastructure, he said.
As for financial and insurance services and health and social services, official data showed that these industry sectors led growth in resident employment in the last quarter of 2025. Non-resident employment grew mainly in construction and manufacturing.
There were high vacancies for professionals, managers and executives (PMEs) in the information and communications, health and social services, and transportation and storage sectors due to digitalisation, ageing and logistics needs.
Looking ahead, observers saw similar trends for hiring in 2026. Across the board, they anticipated strong hiring in financial services and the digital economy.
ManpowerGroup’s employer survey found that the finance and insurance sector and information sector had the strongest hiring intentions in the first quarter of 2026. Ms Teo said this is driven by business expansion and efforts to enhance workforce diversity.
Robert Walters’ Ms Poltock expected very high demand for talent in the accounting and finance, banking and financial services, human resources and business support, sales and marketing, and technology and transformation sectors.
“Banking and finance are starting to see AI applications go from pilot phases to actual implementation, and various industries across the board are seeing AI usage increase.
“With that comes the increase in demand for professionals who are able to navigate and balance between AI usage and business needs,” she said.
Related:
Maybank’s Mr Lee expected higher employment growth in services, particularly finance and hospitality. He pointed out the government’s S$5 billion Equity Market Development Programme may catalyse jobs in the financial sector, including for fresh graduates.
Hiring is also likely to be strong in construction, given a huge pipeline of projects, while the ongoing AI boom may benefit the information and communications and electronics manufacturing sectors, he added.
Aon’s Asia Pacific director for talent advisory Sara Tiew singled out the asset management industry, where demand for talent in investment, client management, risk and compliance roles is expected to remain.
In the technology sector, digitalisation and AI adoption are fuelling demand for talent in AI, software engineering, cybersecurity and data analytics, she added.
For Randstad’s Mr Blasco, the digital economy is still a “powerhouse” creating high-value jobs, with engineering, financial services and life sciences proving especially resilient.
“We are seeing high demand for robotics and automation engineers, specialists in green financing and sustainable investing, and biomanufacturing technicians. Cybersecurity and enterprise software also remain high-priority areas,” he said.
“These sectors are doing well because they are central to Singapore’s strategy of producing high-value, tech-driven solutions for a global market.”
Michael Page’s Mr Khandelwal highlighted electronics, semiconductors and advanced manufacturing among the sectors where Singapore already has deep capabilities and will continue to lead.
“AI server demand, chip production and high-end precision manufacturing remain structural global drivers, and Singapore’s ecosystem is well positioned to capture continued growth,” he said.
He also pointed to healthcare and life sciences, noting that ageing, biomanufacturing, precision medicine and research and development remain core national priorities where continued investment fuels hiring.
Related:
WEAKER HIRING IN EXPORT-ORIENTED, CONSUMER-FACING SECTORS
Hiring will likely be weaker in sectors that depend heavily on global demand or discretionary spending, said Persol Singapore’s managing director and country head Foo See Yang.
These include some export-focused manufacturing areas, parts of traditional retail and general office support roles, he said.
Employers in these sectors are using more automation, shared services and contract staff, as well as replacing only essential roles and combining similar functions, leading to fewer vacancies and more competition for each job, said Mr Foo.
Robert Walters’ Ms Poltock agreed on softer hiring for back-office roles as well as in consumer-facing sectors like traditional retail, parts of the food and beverage industry and lifestyle services.
Consumer-facing sectors are grappling with high rental costs, rising manpower costs and tighter margins that limit their ability to grow headcount, she said.
With the exception of the electronics sector, manufacturing was still singled out by several experts who agreed that export-oriented segments may experience weaker hiring in 2026.
“Global demand remains uneven, and firms in these sectors tend to manage uncertainty by controlling headcount and investing more in automation rather than labour expansion,” said Ms Poltock.
She also painted a “more nuanced picture” in the technology sector, with subdued hiring for generalist and “non-core tech roles” and higher demand for specialised roles.
“Companies are increasingly focused on (return on investment), leading to fewer roles that do not directly support revenue growth or transformation priorities,” she said.
Similarly, Randstad’s Mr Blasco observed that employment in outward-oriented sectors like general professional services and some areas of technology has eased.
“The ‘weakness’ here isn’t necessarily a lack of business, but rather a structural shift where routine administrative tasks are being automated or moved to shared services,” he said.
NAVIGATING THE JOB HUNT
The top PME vacancies in 2025 were for teaching and training professionals, commercial and marketing sales executives and software, web, multimedia and game developers and designers, according to Manpower Ministry data.
Candidates job-hunting in 2026 can now expect longer hiring cycles, recruiters said. Many firms have increased their interview stages from three to as many as five rounds, according to Michael Page’s Mr Khandelwal.
He also advised job-switching candidates to calibrate their salary expectations as pay bumps after a change of job have moderated to about 5 to 15 per cent. There may be higher ranges for niche or scarce skillsets.
Coupled with more selective employers, most recruiters expected this to continue the trend of “job hugging” they have observed among workers.
“In 2026, job changes will likely be more thoughtful as people choose roles that offer real skills growth, learning opportunities, or a better culture fit, rather than just higher pay,” said Persol’s Mr Foo.
Related:
Those looking for permanent jobs were advised to stay open to contract positions as a starting point.
ManpowerGroup’s Ms Teo said project-based or contract roles are becoming more common for accessing specialised skills.
“In many cases, strong performance in these roles can lead to permanent opportunities, offering a practical route to long-term employment,” she said.
Recruiters encouraged jobseekers to “future-proof” themselves through continuous learning, proactively developing in-demand skills like digital literacy, data analytics and AI-related competencies.
But it is equally important to demonstrate softer skills like adaptability, versatility, readiness to contribute, collaboration and problem-solving, they said.
“My best advice is to focus on what makes you uniquely human, so qualities like creativity, empathy, and critical judgment. Because as AI takes over replicable tasks, these traits become exponentially more valuable,” said Randstad’s Mr Blasco.
He also encouraged candidates not to be discouraged by job postings that seem to have “unrealistic” skills requirements, based on findings from Randstad’s 2026 talent outlook and expectations survey.
“Forty per cent of your peers feel the same way, so focus on demonstrating your transferable skills and your ability to ‘unlearn and learn’,” he said.
Continue reading...