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As hiring sentiment softens, employers are taking a more selective approach to workforce planning, with greater focus on skills that strengthen productivity, efficiency, and long-term competitiveness.
According to ManpowerGroup's latest Employment Outlook Survey, employers in Singapore are taking a more cautious approach to hiring in Q3 2026, with 22% anticipating a decrease in staffing levels.
At the same time, 35% of employers plan to increase headcount, while 41% expect to maintain current staffing levels and 2% remain unsure about their hiring plans for the upcoming quarter.
Among employers expecting to keep staffing levels unchanged, more than a quarter (27%) said they are waiting to see how the economy evolves before making hiring decisions. This was the second most cited reason for holding headcount steady, after 38% of employers said their existing workforce is sufficient to meet business goals.
Linda Teo, Country Manager, ManpowerGroup Singapore highlighted that employers in Singapore are taking a taking a more cautious approach to hiring in Q3 2026, "with many choosing to hold steady on headcount until there is greater clarity on geopolitical conditions."
“This does not mean employers are standing still. Instead, hiring decisions are becoming more selective and deliberate, with investment increasingly directed toward skills that deliver the greatest impact."
"The continued willingness to pay a premium for AI and critical thinking capabilities reflects a skills-based approach to hiring, as organisations focus on strengthening productivity, efficiency, and long-term competitiveness even as overall hiring sentiment softens."
In addition to the above findings, the report revealed other key highlights, including:
Singapore’s Net Employment Outlook falls to lowest level since Q4 2021
Singapore’s seasonally adjusted Net Employment Outlook (NEO) for Q3 2026 stands at +13%, marking its lowest level since Q4 2021, when the Outlook stood at -2%.
The NEO is calculated by subtracting the percentage of employers expecting to reduce staffing levels from the percentage planning to increase headcount.
For Q3 2026, Singapore’s Outlook remains at +13% after seasonal adjustment, which removes predictable hiring patterns. Seasonally adjusted figures are used throughout the report unless otherwise stated.
Singapore’s Outlook is also below both the Asia Pacific and Middle East regional average of +28% and the global average of +26%.
Here are the employment outlooks across the Asia Pacific and the Middle East:
- The Asia Pacific and the Middle East (APME) region reports an Outlook of +28%, declining 10 points quarter-on-quarter and remaining stable year-on-year.
- India (+48%) continues to anchor regional confidence, despite a 20-point quarter-on-quarter decline. It also records the highest Employment Outlook globally in Q3 2026, alongside Puerto Rico (+48%).
- Hong Kong (-9%) remains the most cautious market in the region, following a 20-point quarter-on-quarter decline and a 17-point decrease year-on-year.
- Across the Asia Pacific & Middle East region, employers report a strong willingness to pay a premium for AI literacy skills (69%), as well as for communication, collaboration, and teamwork (74%).
Singapore employers prioritise AI, critical thinking and collaboration skills
Beyond hiring intentions, the survey also examined the technical and interpersonal skills that employers in Singapore are willing to pay a premium for in the coming quarter. The findings suggest that while companies are more cautious about overall headcount growth, they remain focused on investing in capabilities that can support transformation, productivity and execution.
AI-related capabilities lead technical skills demand. Two-thirds of employers in Singapore said they are willing to pay a premium for AI literacy skills, while 64% cited AI model and application development skills. This is followed by traditional IT and data skills, with 56% of employers reporting a willingness to pay more for these capabilities.
Employers in the public sector, health and social services sector are most willing to pay a premium for AI literacy skills, at 78%. This is followed by employers in professional, scientific and technical services at 72%, and technology and IT services at 69%.
For AI model and application development skills, willingness to pay a premium is highest among employers in information, and professional, scientific and technical services, both at 76%, followed by finance and insurance at 71%.
Soft skills are also commanding a premium. Employers are most willing to pay more for critical thinking and problem-solving, as well as communication, collaboration and teamwork, each cited by 66% of employers in Singapore. Leadership and social influence follow closely, with 64% reporting a willingness to pay a premium for these capabilities.
Teo said these findings point to a more deliberate and capability-led approach to workforce planning.
"Organisations are placing greater emphasis on building capability in areas that support transformation and execution, particularly AI-related skills alongside core human strengths such as problem-solving, collaboration, and leadership.
"This reinforces the importance of a human-first, digital-always approach—centering workforce strategy on people, while leveraging technology to amplify human capability," Teo stated.
READ MORE: Skills gaps in Singapore's workforce: Nearly 50% say these cause increased workload for other staff
Lead image & infographics / ManpowerGroup Singapore
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