Employers aiming to maintain current headcount levels, report finds
The hiring outlook of employers in Singapore saw a modest increase in the second quarter of 2026 as business confidence rebounds following strong AI momentum and other factors, according to a new report.
The National Business Survey from the Singapore Business Federation (SBF) revealed that the hiring outlook index went up by 1.2 points to 56.3 in Q2 2026.
This indicates a "slight improvement in businesses' employment expectations," according to the SBF.
"At this level, the index suggests that businesses generally intend to maintain current headcount levels, rather than pursue workforce expansion," it added.
Small and medium enterprises in Singapore led the national improvement with a slightly stronger hiring outlook growth of 1.4 points, while larger companies saw a broadly stable outlook growth of 0.1 points.
Hiring outlook by sector
By sector, hiring outlook was the strongest in Banking and Insurance, with 63.4 points. It is followed by the Health & Social Services (59.5 points) and then the Administration & Support Service Activities (59.5 points) sectors.
By contrast, the IT & Related Services sector saw the weakest hiring outlook with 53.9 points, following a 3.4-point drop from the first quarter.
The Hotels, Restaurants, and Accommodation sector also saw a significant 14.4-point decline in hiring outlook, leaving its score with a below average 55.0 points.
Rebound in business confidence
The modest growth in Singapore's hiring outlook comes amid a rebound in business confidence across employers, according to the SBF's report.
The Business Sentiment Index improved by two points to 53.3 points in the second quarter, rebounding from a decline in the previous one.
Business outlook improved, with just 32% of businesses expecting the economy to worsen over the next 12 months, falling from 41% in the first quarter.
The improvement in business sentiment comes amid resilient economic growth, according to the SBF. It was also attributed to the global AI investment boom being stronger than expected and the Middle East conflict's impact being less severe than anticipated.
"While external risks remain, businesses are demonstrating resilience, adapting to changing conditions, and positioning themselves for growth," said SBF chief executive officer Kok Ping Soon.
"Our focus must now be on helping companies strengthen their competitiveness, embrace innovation and capture new opportunities in a rapidly evolving global economy."
The SBF's report arrived ahead of Prime Minister Lawrence Wong's 2026 National Day Rally speech on August 23, where he is expected to address the nation and make key policy announcements.
