Some key sectors observed quarterly increase in employment, while others saw a drop
Employment levels among Singapore-based firms dropped annually in the second quarter of 2026 as business optimism slides in the face of geopolitical uncertainty.
Data from the Singapore Commercial Credit Bureau (SCCB) found that employment levels moderated from +7.20 percentage points in Q2 2025 to +3.70 percentage points in Q2 2026.
This is despite a slight increase quarter-on-quarter from +2.96 percentage points in the first quarter of the year, according to the report.
Key sectors in Singapore also showed varying employment levels in the second quarter, with the financial, manufacturing, and wholesale sectors recording a quarterly increase.
On the other hand, the services and transportation sectors observed a quarterly drop, while the construction sector remained unchanged at 0 percentage points in Q2 2026.
Slipping business confidence
The findings come as optimism in the second quarter of 2026 softened in the wake of global geopolitical uncertainties, according to the SCCB.
Singapore's Business Optimism Index (BOI) deteriorated further to +4.10 percentage points in Q2 2026, down from the +4.30 percentage points logged a year ago.
Annually, the BOI also dropped from +5.20 percentage points in Q2 2025 to +4.10 percentage points in Q2 2026.
"Business optimism has softened for the second straight quarter, reflecting the cautious stance that many companies are now adopting amid heightened global geopolitical uncertainties," Audrey Chia, SCCB's chief executive officer, said in a statement.
"While key indicators remain expansionary, the marginal improvements suggest that firms are proceeding carefully as they navigate persistent geopolitical tensions, supply chain disruptions, and a more volatile external environment."
Chia added that their findings indicate businesses are facing increasing margin pressures even as demand stabilises.
"With heightened global uncertainties, businesses are adopting a more cautious stance in their investment and expansion decisions which could tamper growth in the short-term," the CEO said.
The ongoing conflict in the Middle East has triggered fuel price surges that have prompted changes in the way employers work in Asia, with some governments encouraging remote work policies to conserve fuel.
In Singapore, Manpower Minister Tan See Leng urged the public to conserve energy and use more energy-efficient appliances as global energy prices rise.
He assured, however, that Singapore's energy supplies remain secure.
"I want to assure all of our fellow Singaporeans that our energy is secure, even in the face of these disruptions," Tan said as quoted by The Straits Times.
