Singapore’s hiring outlook slips to three-year low as employers brace for economic uncertainty

Hiring sentiment in Singapore is set to enter 2026 on a softer note, with employers signalling a more cautious approach to workforce planning. According to ManpowerGroup’s Employment Outlook Survey released this week, the Republic’s net employment outlook (NEO) for the first quarter of 2026 stands at +15%, its lowest point in three years.

The report highlights a five-point drop from the previous quarter and an 11-point decline compared with the same period last year. The NEO last touched this level in early 2022, underscoring how economic uncertainty, uneven global demand and ongoing business consolidation are shaping hiring plans.

Among the 504 organisations surveyed, almost half (46%) expect to keep their headcount unchanged. About one-third (32%) plan to add staff, while 18% anticipate reducing manpower. A small group, 4%, remain unsure, reflecting a wait-and-see stance as companies monitor global conditions.

Linda Teo, Country Manager of ManpowerGroup Singapore, said employers are becoming more deliberate in their decisions. “We’re seeing more companies choosing to hold steady while they observe how economic conditions unfold. Those that are hiring are doing so with clear priorities, whether that’s supporting growth areas, strengthening diversity efforts or maintaining an edge against competition,” she said.

The survey found that market restructuring, efficiency drives and the adoption of automation tools are key reasons behind the tempered outlook. Some firms are also right-sizing teams as part of broader strategic reviews.

At the same time, organisations still planning expansion say their focus is on new business lines, replacing recent departures and filling roles that have remained open longer than expected.

While hiring remains in positive territory, the tone for early 2026 signals a more grounded approach, one where stability, adaptability and cautious optimism shape workforce decisions.