Employers putting more emphasis on skills and job-readiness
Employers in Singapore are being cautious in hiring new employees despite a tight talent market, according to a new report from Reeracoen and Rakuten Insight.
The report, which surveyed 375 hiring managers, revealed that only 23.2% feel very confident about finding qualified local talent amid high salary expectations (80.3%), skills mismatch (65.1%), and a lack of experienced candidates (56.3%).
Despite these challenges, employers remain selective when recruiting and are being cautious when evaluating mid-career candidates, applicants with career gaps, and those who have been unemployed for more than three months.
"Singapore's hiring landscape is changing quickly, and the data shows that employers are becoming more selective in how they assess readiness and skills," said Cheryl Ng, country director, Singapore, Rakuten Insight, in a statement.
The findings revealed that employers are putting more emphasis on candidates' skills, with 76.6% of hiring managers considering recent training, certifications, or skills development as essential for applicants.
Employers are also placing a high value on digital and AI skills, followed by project management, data literacy, technical certifications, and communication abilities, according to the report.
"Mid-career candidates and those returning to the workforce are evaluated not just by experience, but also by their recent learning efforts and job readiness," Ng said.
"These insights provide important direction for organisations looking to strengthen their hiring strategies and adapt to shifting workforce expectations."
Singapore's easing labour demand
Singapore's labour demand is expected to moderate in the early part of 2026, according to the country's Ministry of Manpower.
"Business expectations for 1Q 2026 point to fewer firms planning to hire or raise wages in the coming three months," the ministry said in its latest Labour Market Report.
This is in line with recent findings from ManpowerGroup that revealed Singapore's hiring sentiment dropping to a four-year low for the first quarter of 2026.
"Singapore's hiring outlook reflects a period of recalibration as employers adjust workforce strategies," said Linda Teo, Country Manager of ManpowerGroup Singapore, in a previous 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."
