SINGAPORE – The hiring outlook in Singapore has dimmed slightly for the upcoming third quarter of 2025 with prevailing economic uncertainty prompting some employers to either shed workers or hire more selectively.
Almost seven in 10 of the 525 employers polled by recruitment firm ManpowerGroup reported that the uncertainty had a moderate or large impact on their hiring decisions for the next quarter.
The net employment outlook dipped a relatively modest 3 percentage points to 24 per cent after seasonal adjustment, according to findings in the ManpowerGroup’s quarterly employment outlook survey on June 10.
The net employment outlook is a measure of hiring optimism, defined as the percentage of companies surveyed that intend to take on new staff, minus the percentage that intend to downsize, in the upcoming quarter.
The latest figure, which was drawn from a poll conducted in April, is up 4 percentage points from the results posted for the same quarter a year ago, but is the lowest since then.
Of the employers polled, 43 per cent anticipate hiring more workers, while 19 per cent expect a decrease in head count and 38 per cent do not plan to hire more workers.
Company expansion is the top reason cited for hiring. Other common reasons include the need for the latest skills to stay competitive, and more expertise in view of technological advancements.
Out of those who anticipate reduced staff numbers, economic uncertainty was the most common reason cited, at 42 per cent, followed by adapting to market changes.
The healthcare and life sciences industry reported the brightest net employment outlook at 43 per cent, up 7 percentage points from the same time last year, but is down 6 points from a quarter ago.
The information technology industry notched a net outlook of 36 per cent, and the transport, logistics and automotive industry recorded a net outlook of 31 per cent.
Meanwhile, employers in communication services reported a net outlook of 21 per cent, as did energy and utilities employers, while “other” sectors came in at 27 per cent.
Employers in the “other” category include the government or public service; non-profits, non-governmental organisations, religious organisations or charities, and educational institutions.
Rounding off the list were the financials and real estate sector at 18 per cent after three consecutive quarters of decline, industrials and real estate at 14 per cent and consumer goods and services at 13 per cent.
In a reversal of fortunes, the net outlook for the energy and utilities sector continued its rebound out of the negative range seen two quarters ago.
Hiring expectations also varied with company size.
Those with under 10 employees reported a net outlook of 37 per cent. Companies with 250 to 999 employees posted a net outlook of 27 per cent.
Bigger companies with 1,000 to 4,999 employees reported the best net outlook at 41 per cent.
However, the figure plummets to 14 per cent for the largest firms with more than 5,000 employees, 16 per cent for small firms with 10 to 49 employees and merely 8 per cent for those with 50 to 249 employees.
Globally, the net outlook for the third quarter across 42 economies including Singapore clocked in at 24 per cent too, down 1 percentage point from a quarter back.
ManpowerGroup Singapore country manager Linda Teo said: “While the overall outlook has softened, a closer look reveals a more nuanced picture.
“Employers are holding on to their talent while strategically investing in future-proofing their workforces, adopting a wait-and-see approach to the global trade environment. This underscores a shift towards greater workforce agility – aligning talent investments with evolving market dynamics.”
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