Singapore’s employment outlook has taken a hit, with the latest ManpowerGroup Employment Outlook Survey revealing a significant decline in hiring sentiment for Q3 2026. The Net Employment Outlook (NEO) stands at 13%, marking an 11-point drop both quarter-on-quarter and year-on-year. This figure is notably below the Asia Pacific and Middle East regional average of 28% and the global average of 26%.
The survey, which gathered responses from 599 employers across Singapore, highlights a growing demand for specific skills despite the overall softer hiring sentiment. Two-thirds of employers expressed a willingness to pay a premium for AI literacy skills, with 66% prioritising these capabilities. Similarly, 64% of employers are keen on investing in AI model and application development skills. Traditional IT and data skills also remain in demand, with 56% of employers ready to offer higher wages for these competencies.
In addition to technical skills, soft skills are highly valued. The survey indicates that 66% of employers are prepared to pay more for critical thinking and problem-solving abilities, as well as communication, collaboration, and teamwork skills. Leadership and social influence skills are also sought after, with 64% of employers willing to invest in these areas.
The Manufacturing sector leads in hiring intentions with an NEO of 25%, although this represents a slight decrease from previous quarters. As Singapore navigates these challenging times, the emphasis on AI and critical thinking skills suggests a strategic focus on future-proofing the workforce.
