1 in 2 Singapore employers to increase headcount in 2025: survey

Shortage of skilled talent still top barrier for recruitment

1 in 2 Singapore employers to increase headcount in 2025: survey

Nearly half of employers in Singapore are planning to increase their headcount in 2025, with demand growing for skilled professionals in finance and technology.

Randstad Singapore's 2025 Job Market Outlook and Salary Guide found that 49% of employers there are planning to hike their headcount this year, while 40% aim to maintain their current workforce.

According to the report, 45% of employers are expecting high hiring activity in sales and business development.

Nearly a quarter of employers (23%) also said they are prioritising recruiting tech talent, followed by 13% who are planning to invest in digital transformation and AI professionals.

David Blasco, country director at Randstad Singapore, said the country's digital transformation is creating unprecedented opportunities and challenges across sectors.

"As employers grapple with talent scarcity, we're witnessing greater demand for professionals skilled in AI, data analytics and digital infrastructure, alongside a strong focus on revenue generation and business development capabilities," Blasco said in a statement.

Challenges to hiring in Singapore

The strong hiring sentiments come despite 66% of employers saying there is a shortage of candidates with required skills.

This reflects the situation across the Asia-Pacific region, where a recent LinkedIn report found that there is an ongoing mismatch between the skills job applicants have and the skills required for a certain role.

"The dual pressures of technical advancement and commercial expectations are elevating hiring requirements for both technical expertise and business acumen, presenting new challenges in talent acquisition and development," Blasco said.

With talent limited, 38% of employers in Randstad's report said there is intense market competition for talent.

To address this, at least three in 10 employers said they will focus on internal promotions (30%) or increase their budgets for technical roles (38%).

Nearly half of the organisations also said they are projecting average salary increases of three per cent to five per cent this year in response to talent shortage.

WTW's latest Salary Budget Planning Report revealed that employers in Singapore are projecting to a four per cent salary budget increase rate.