[SINGAPORE] Overall hiring sentiment in Singapore is set to cool in the fourth quarter, as employers take a cautious approach amid the global trade uncertainty, indicated a private-sector employment outlook survey.
Of the 524 employers that responded to workforce solutions company ManpowerGroup’s latest quarterly survey, only 37 per cent said they plan to hire in Q4. In the previous survey, 43 per cent of respondents said they planned to hire in Q3.
But fewer companies also expect to make cuts. Some 17 per cent anticipate a decrease in their staffing levels, marginally lower than the 19 per cent that said so in the previous survey.
About 45 per cent plan to maintain current staffing levels.
This brings Singapore’s net employment outlook (NEO) in Q4 to +20 per cent, indicating overall positive hiring intentions – but representing a fall of four percentage points, or 17 per cent, from Q3.
The NEO is the difference in the share of employers planning to hire and those expecting to make cuts.
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The Q4 figure is also nine percentage points or 31 per cent lower than the year-ago period, when it was +29 per cent.
And it is the lowest figure since Q3 last year, when it was also +20 per cent.
Singapore’s NEO peaked in Q3 2022 at +40 per cent, the highest score recorded since the survey started.
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The worsening sentiment in Singapore is in line with the broader global trend. The global NEO is +23 per cent for Q4, representing a drop of 8 per cent, or two percentage points, year on year.
The United Arab Emirates has the highest score at +45 per cent, while Argentina has the lowest at +5 per cent. Hong Kong’s score is the lowest in the region at +6 per cent.
The survey found that the top reason why Singapore employers are maintaining staffing levels in Q4 is that their existing teams are sufficient to meet business goals.
Respondents also reported no major planned projects or expansions, and said they are adopting a wait-and-see approach amid the economic uncertainty.
Those that are hiring are doing so because company growth is driving job creation or new ventures require new roles.
Employers that expect staff cuts, meanwhile, cite reasons such as economic challenges and market shifts lowering job demand.
Sectoral bright spots
Hiring prospects are brightest for Singapore’s transport, logistics and automotive sector, which has a NEO score +48 per cent for Q4. Singapore has the world’s second-highest NEO for this sector and beats the global average by 24 percentage points.
The figure is also 18 percentage points higher than the Q3 score and four percentage points higher than the same period a year ago.
Linda Teo, country manager of ManpowerGroup, said the strong momentum is largely driven by Singapore’s strategic role as a logistics hub, but added that it is unclear if the momentum will be sustained as global trade dynamics continue to evolve.
Healthcare and life sciences is the next brightest spot in Singapore at +38 per cent, although it dimmed slightly compared with the previous quarter.
Financials and real estate has the weakest outlook at +10 per cent, plunging from a score of +62 per cent in the same period last year. In Q3, the score was +19 per cent.
Hiring challenges
The survey also asked employers how they are navigating talent challenges.
About a third of them use temporary or contract workers for specialised short-term tasks or seasonal or surge support. In contrast, about 30 per cent of them rely on full-time staff for these.
Meanwhile, half the employers cited attracting qualified candidates as a top challenge with talent acquisition, followed by difficulties in filling complex technical roles.
Some 56 per cent of employers identified work-life balance and workload as their most effective retention strategy. This is especially prominent in the financials and real estate sector, where two-thirds of employers prioritise talent retention.
