54% of employers surveyed said they do not plan to increase headcount next year, down from 58% in 2025, according to a survey released on Thursday by the Singapore National Employers Federation (SNEF).
Meanwhile, 40% of companies intend to hire in 2027, up from 33% that had planned to do so in 2026. The share of respondents in this year’s survey planning to reduce headcount also fell to 6%, from 8% last year.
On wages, 51% said they plan to moderate wages or impose wage freezes in 2027, up three percentage points from the figure for 2026. The remaining 49% plan to raise wages, down from 51% previously.
“This indicates continued caution in the wage outlook among employers, particularly among small and medium-sized employers,” SNEF said in its annual wage and employment outlook survey.
Smaller employers generally remain more cautious than larger companies, SNEF said in response to a query from The Business Times.
“Small and medium-sized employers were more likely to report uncertain business prospects and poorer business performance, and were also more likely to implement wage moderation or wage freezes in 2027,” it said.
“In contrast, larger employers generally reported a more positive outlook and are not planning wage freezes.”
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Office workers walk out for a lunch break at Raffles Place financial business district in Singapore on May 10, 2022. Photo by AFP |
SNEF council vice-president Kuah Boon Wee said it is encouraging to note that many employers are continuing to invest in workforce capabilities, job redesign and AI adoption to strengthen productivity and competitiveness, according to The Straits Times.
“Nevertheless, labour market tightness has eased compared with a year ago as fewer companies reported difficulties in attracting and retaining professionals, managers, executives and technicians, and a shortage of local high-skilled talent in the next 12 months,” said SNEF.
The 2026 survey was conducted between June and August and received responses from 320 companies employing nearly 160,000 workers. The respondents represented 20 industries and companies of varying sizes.
Singapore ranked first in Asia and eighth globally in GDP per capita last year at $99,365, according to the International Monetary Fund.