HR demand in Singapore dips sharply towards end of 2025

Demand for human resources professionals in Singapore fell significantly in the final quarter of 2025, signalling a broader slowdown in hiring activity as employers adopt a more cautious stance heading into 2026.

According to the latest Hiring Lab Report from Indeed, job postings for HR roles declined by 34.7% between September 30 and December 31, 2025. This made HR the second-worst performing occupational group in the country during the period, surpassed only by childcare roles, which saw a steeper 59.4% drop in listings.

Indeed noted that the fall in HR demand is particularly noteworthy, as it may reflect companies pulling back on overall recruitment. “This decline in demand for human resource professionals will be one to watch, particularly given that drop-off might be a sign that businesses are looking to reduce overall hiring activity,” the report said.

The findings align with broader employer sentiment in Singapore. Recent surveys suggest organisations are becoming increasingly conservative in their workforce plans, with 58% of employers reportedly planning to freeze headcount in 2026.

“Employers are navigating 2026 cautiously, in view of rising costs of doing business and uncertainties in the overall global economy,” Hao Shuo, CEO of the Singapore National Employers Federation, said in a statement late last year.

The slowdown in HR hiring mirrors a wider decline in job postings across the Singapore labour market. While job listings remain 33% above pre-pandemic levels, they have been trending downward for the past three years.

In December alone, job postings dipped by 0.3%, marking the ninth consecutive monthly decline in 2025. By year-end, postings were 15.8% lower than at the start of the year.

Despite this sustained easing, Indeed described Singapore’s labour market as “incredibly tight.” The report attributed this to the scale of the post-pandemic hiring surge, which has helped keep unemployment low even as job creation slows.

“The post-pandemic job boom in Singapore was so large that even though job postings have fallen for the past three years, it’s still sufficiently high to keep the unemployment rate low,” the report noted.

While overall hiring momentum weakened, some sectors continued to see growth in the final quarter of 2025. Banking and finance led the way, with job postings rising 8.5% over the last three months of the year.

Scientific research and development followed with a 7.3% increase, while software development roles grew by 7.0%, underscoring continued demand for specialised and future-facing skills.

“Singapore finished the year as it started, with a very tight labour market but declining job creation,” the report said. “Job creation eased throughout the year and December was no exception. We expect this downward trend to continue in the near term.”

Alongside sectoral shifts, the report highlighted the growing influence of artificial intelligence on hiring patterns. Job postings mentioning generative AI increased 1.7 times over the year, with nearly one in five job ads in Singapore now referencing generative AI capabilities.

The occupations most likely to mention generative AI included Data and Analytics (60%), Software Development (48%), Scientific Research (37%), and Industrial Engineering (34%).

“Artificial intelligence continues to become more prominent across the Singapore economy, with demand for AI-related skills rising by the month,” the report said, adding that Singapore has emerged as one of the fastest adopters of AI tools among the markets Indeed operates in.

As organisations balance cost pressures with the need for advanced skills, the data suggests 2026 is likely to see a more selective hiring environment, one where growth persists in pockets, even as overall recruitment activity remains under pressure.