Singapore’s job market is poised for transformation in 2025, with 42% of employers planning to expand their permanent workforce, according to Jobstreet by SEEK’s latest Hiring, Compensation and Benefits report. The survey of 887 employers and HR professionals highlights a shift towards AI fluency, flexible work arrangements, and non-monetary benefits as key employment expectations.
AI skills have become a significant hiring consideration, with 54% of businesses prioritising them. However, only 15% currently utilise AI tools in recruitment, citing barriers such as perceived unnecessary use (51%), concerns over losing personalisation (44%), and lack of access to AI applications (40%). This gap presents an opportunity for employers to integrate AI and streamline recruitment processes.
The report also indicates a growing trend towards flexible work models, with SMEs leading the charge. More than one-third of employers are increasing their reliance on contract, part-time, and flexible roles, doubling from 15% in 2024. This shift aligns with Singapore’s GDP growth forecast of 1-3% for 2025.
Compensation strategies are evolving beyond base salary, with a focus on flexible work arrangements, mental health days, and family care. These benefits reflect a broader shift towards a human-centred employee experience.
Despite the growing prominence of diversity, equity, and inclusion (DEI), its implementation remains inconsistent. Only 40% of companies have formal DEI initiatives, with barriers including lack of regulatory push and unclear return on investment. However, DEI is increasingly important for attracting younger talent, with 62% of Gen Z jobseekers prioritising it in their employment decisions.
As Singapore’s job market adapts to digital disruption and changing workforce values, employers are encouraged to broaden recruitment strategies, offer competitive benefits, and prioritise AI literacy to remain competitive.
“`
