Singapore employers hiring ‘carefully’ amid tight talent market

Singapore’s employers are increasingly cautious in hiring, even as the city-state maintains a low unemployment rate of around 2.1%, according to a new report nby Reeracoen and Rakuten Insight.

The study titled, 'Singapore Hiring Manager Survey Report 2025–2026', which collected responses from 375 hiring managers across industries, including HR professionals and final decision-makers, found that only 23.2% feel very confident about finding qualified local talent. Among the key findings: High salary expectations (80.3%), skills mismatches (65.1%), and a shortage of experienced candidates (56.3%) were cited as the top barriers. Limited interest from jobseekers was also noted by 40.5% of respondents.

Despite these challenges, employers remain selective in recruitment, particularly when evaluating mid-career candidates, applicants with career gaps, and those unemployed for more than three months. Career gaps continue to be a significant hurdle, with 63% of employers hesitant to hire candidates who have been out of work for over three months.

“Singapore's hiring landscape is changing quickly, and the data shows that employers are becoming more selective in how they assess readiness and skills,” said Cheryl Ng, Country Director, Singapore, Rakuten Insight. 

“Mid-career candidates and those returning to the workforce are evaluated not just by experience, but also by their recent learning efforts and job readiness. These insights provide important direction for organisations looking to strengthen their hiring strategies and adapt to shifting workforce expectations.”

The report highlights a shift toward skills-based, human-centric hiring, with 76.6% of respondents stating that recent training, certifications, or skills development are essential in evaluating candidates. Digital and AI skills top the list of priorities, followed by project management, data literacy, technical certifications, and communication abilities.

“Across Asia, hiring is shifting toward a skills-based, human-centric approach,” said Kenji Naito, Group Chief Executive Officer, Reeracoen Group. “This study highlights the need for companies to evaluate potential not only by job history, but also by motivation, effort, and adaptability. At Reeracoen, we are committed to bridging the trust gap between employers and jobseekers.”

Recruitment agencies continue to play a crucial role in Singapore’s hiring landscape. More than 76% of employers rely on agencies to shortlist candidates, helping reduce mismatches and hiring delays, particularly for hard-to-fill roles.

“Singapore’s rapid digital transformation continues to widen the gap between employer expectations and jobseeker readiness,” said Shoichi 

Sunaga, Branch Manager, Reeracoen Singapore. “Employers increasingly value preparation, skills evidence, and proactiveness. Jobseekers who lack recent activity or training often struggle to demonstrate immediate value, highlighting opportunities for companies, agencies, and policymakers to support fairer hiring evaluations and re-entry pathways.”

Hiring Outlook for 2026

The cautious hiring approach aligns with Singapore’s broader labour market outlook. The Ministry of Manpower expects labour demand to moderate in early 2026, noting that fewer firms plan to hire or raise wages in the coming months.

Similarly, ManpowerGroup reported that hiring sentiment for Singapore has dropped to a four-year low for the first quarter of 2026. “More employers are focused on maintaining staffing levels or holding off on decisions while monitoring economic conditions,” said Linda Teo, Country Manager, ManpowerGroup Singapore. “Those still hiring are doing so strategically, driven by growth needs, diversity priorities, and the need to remain competitive.”

The findings suggest that while job opportunities remain, candidates, particularly mid-career professionals, will need to demonstrate continuous learning, adaptability, and relevant digital skills to stay competitive in Singapore’s evolving job market.