But new report notes 'dual narrative' in staffing Singapore's staffing levels
Hiring outlook in Singapore improved for the second quarter of 2025 to indicate a "stabilising labour market," according to the latest ManpowerGroup report.
Its latest Employment Outlook Survey revealed that the hiring outlook for the second quarter of 2025 hit 27%, strengthening by two percentage points since the first quarter of the year.
"Singapore's hiring outlook reflects a stabilising labour market, supported by stronger-than-expected economic growth in 2024," said Linda Teo, country manager of ManpowerGroup Singapore, in a statement.
Despite the improvement, the number of employers expecting to increase their headcount declined to 39%, down from 45% in the previous quarter.
On the other hand, those who are not expecting any changes reached 49%, up from 34% in the first quarter, according to the report.
"This trend suggests a dual narrative where staffing levels are either normalising after post-pandemic adjustments or employers are adopting a cautious 'wait-and-see' approach amid global trade tensions and economic uncertainties," Teo said.
"It's also important to note that this survey was conducted from 2 to 31 January 2025, prior to the release of Singapore Budget 2025, which may further shape hiring plans in the coming months."
Meanwhile, the top driver of staffing increases in Singapore is company expansion, as cited by 41% of the respondents.
A third of them also cited that they are hiring because they need the latest skills to stay competitive and recent tech advancements need more expertise. In fact, tech advancements are driving hiring for various sectors, including:
Transport, logistics, and automotive (56%)
Communication services (36%)
Consumer goods and services (35%)
Financials and real estate (35%)
Information technology (31%)
Healthcare and life sciences (31%)
Industrials and materials (24%)
Energy and utilities (22%)
On the other hand, tech is also cited as one of the reasons why employers are reducing their headcount, according to the report.
It found that 31% of employers are reducing some roles because of automation. This is the third-highest reason cited for role reductions, just behind economic challenges (30%) and restructuring (36%).
"Technological advancements, such as AI, are a key factor in reshaping Singapore's workforce landscape," Teo said.
"The dual impact where some jobs are lost while new ones are created, underscores the need for businesses to prioritise upskilling and strategic planning to thrive in an AI-driven economy."
