Singapore employers delay recruitment amid geopolitical and trade-related uncertainty

Singapore’s labour market remains resilient, but businesses are turning more cautious on hiring as the ongoing Middle East crisis and rising global trade fragmentation drive up costs and deepen economic uncertainty, the Ministry of Manpower (MOM) said in Parliament on Wednesday.

Responding to questions from Members of Parliament including Yip Hon Weng, Liang Eng Hwa and Choo Pei Ling, the ministry said energy-intensive industries and outward-oriented sectors have been the most affected by higher energy costs linked to the Middle East conflict.

The Government noted that export-driven sectors were already facing pressure from longer-term global trade fragmentation, with the latest geopolitical tensions compounding operational and business challenges.

“While the labour market remains resilient for now, businesses have become more cautious in their hiring plans amid the heightened uncertainty,” MOM said.

According to MOM survey data, the proportion of firms planning to hire over the next three months fell sharply from 54.6% in February 2026 to 44.6% in March 2026.

However, the ministry pointed to “early signs of stabilisation” in April, supported by indicators from the Economic Development Board and the Department of Statistics suggesting that hiring sentiment could improve over the longer term.

The softer outlook has raised concerns over employment prospects for graduates and mid-career workers amid reports that companies are deferring recruitment and trimming benefits to manage rising operating costs.

The Government did not identify specific groups of workers most vulnerable to prolonged trade fragmentation but said support measures remain available through Workforce Singapore and SkillsFuture Singapore. 

Jobseekers can access career matching services, reskilling initiatives and transition programmes aimed at helping workers move into new roles.

MOM added that it stands ready to introduce further support measures for jobseekers if labour market conditions weaken further.