New report marks 2026 as a 'period of recalibration' for employers
Hiring sentiment in Singapore has dropped to a four-year low as employers hold off on making staffing decisions due to economic conditions, according to ManpowerGroup's latest Employment Outlook.
Singapore logged a net employment outlook (NEO) of 15% for the first quarter of 2026, down by five points from the fourth quarter of 2025 and 11 points year on year.
This is also the country's lowest NEO since the first quarter of 2022, according to ManpowerGroup.
"Singapore's hiring outlook reflects a period of recalibration as employers adjust workforce strategies," said Linda Teo, Country Manager of ManpowerGroup Singapore, in a statement.
"More employers are focused on maintaining staffing levels or holding off on making staffing decisions while waiting to see how economic conditions evolve, while those hiring are doing so strategically, driven by organisational growth, diversity initiatives, and maintaining a competitive advantage."
Hiring plans in Singapore
The Net Employment Outlook represents the difference between the percentage of employers planning to increase and decrease staffing levels in the next quarter.
In Singapore, 46% of employers plan to keep staffing levels unchanged in the first quarter of 2026.
Another 32% plan to increase their staff between January and March, while 18% expect staff reductions.
Organisational growth emerged as the top reason (39%) why employers plan to expand their headcount in early 2026, according to the findings. Other reasons include:
- Diversity initiatives (34%)
- Competitive advantage (31%)
- New business areas (26%)
- Backfilling recent vacancies (26%)
Meanwhile, economic challenges emerged as the top reason (31%) for reducing headcount, the report revealed. Other factors include:
- Operational efficiency (30%)
- Restructuring (30%)
- Rightsizing (26%)
"Looking ahead, hiring sentiment is expected to remain measured as external pressures and softer global demand influence business confidence," Teo said.
A previous poll from the Singapore National Employers Federation has also indicated that more than half of employers plan to freeze headcount next year as they navigate 2026 cautiously.
To address manpower challenges, about two in three employers in a Singapore Business Federation survey have asked the government for a scheme in Budget 2026 to address costs. Another 46% have asked for measures to attract, develop, and retain the local workforce.
