Singapore’s labour market is bracing for a notable slowdown in early 2026, with new data signalling the weakest hiring sentiment in four years. ManpowerGroup’s latest Employment Outlook Survey, released on Tuesday (Dec 9), shows the Republic’s net employment outlook falling to 15 per cent for the first quarter of 2026, a level last seen in early 2022.

The figure represents a five-point dip from the previous quarter and an 11-point slide year-on-year, pulling Singapore well below the global average of 24 per cent. While the outlook remains in positive territory, the softer reading suggests employers are moving into a more cautious phase as they assess economic conditions.

The quarterly survey, which captures responses from 504 employers, indicates a clear shift toward stability rather than expansion. Nearly half of organisations (46 per cent) expect staffing levels to remain unchanged in Q1 2026, up sharply from 34 per cent a year earlier. Only 32 per cent plan to increase headcount, down from 45 per cent last year, while 18 per cent anticipate cuts. A small but rising share, 4 per cent, remain uncertain about hiring plans.

Linda Teo, Country Manager of ManpowerGroup Singapore, described the sentiment as a “period of recalibration,” noting that organisations are proceeding deliberately rather than pulling back entirely. “Employers are holding steady while waiting to see how global and regional conditions evolve. Those who are hiring are doing so more strategically, aligning decisions with business growth priorities, diversity commitments, and the need to stay competitive,” she said.

Among employers maintaining their workforce size, almost a quarter (23 per cent) say they are watching the economic environment before making further moves.

Economic caution remains the top reason for hesitancy, with 43 per cent of undecided employers citing uncertainty as they weigh their next steps.

The latest numbers suggest Singapore may enter 2026 with a labour market that is stable but subdued, as companies balance long-term talent needs with short-term caution.