Less than 2 in 5 Singapore employers are hiring in the next 3 months, but AI and technology sectors are still recruiting

Finance and real estate stood out for a different reason. It was the only major sector to post a negative outlook, with more employers expecting to reduce headcount than increase it. Hospitality and retail stayed flat.

Technology and information technology (IT), however, proved to be one of the most stable sectors. Its hiring outlook was unchanged from the previous quarter, bucking the trend of falling confidence.

Another area drawing attention was utilities and natural resources, where hiring expectations rose sharply. Although the sample size was relatively small, the increase comes as Singapore continues investing in clean energy and sustainability projects.

That trend aligns with comments made by the Minister of State for Trade and Industry Gan Siow Huang last year, when she said Singapore’s clean energy workforce could grow by about 60%, or roughly 1,000 workers, over the next decade.

AI skills are becoming a salary booster

Even as companies slow hiring, many are willing to pay more for workers with sought-after skills. The survey found that AI-related capabilities topped employers’ wish lists.

Around 66% of employers said they would offer higher salaries to workers with AI literacy skills, such as the ability to use AI tools effectively. Nearly as many were prepared to pay more for AI development skills, including building AI models and applications. Traditional IT and data skills are also highly valued.

The strongest appetite for AI literacy came from public-sector, health, and social-service employers, followed by professional services and technology firms. Demand for AI development expertise was especially strong among information sector employers, professional services firms and financial institutions. The findings suggest that employers are becoming more selective rather than simply hiring fewer.

Soft skills still matter: Employers still want people who can work with others

While technical skills may attract attention, two-thirds of employers surveyed said they would pay more for workers with strong critical-thinking and problem-solving abilities.

The same proportion valued communication, teamwork, and collaboration skills, while leadership capabilities ranked highly as well.

That sends a practical signal that AI skills can open doors, but employers still want people who can work with others, make sound decisions and adapt to changing situations.

There’s still some hope: It’s a slower job market, not a completely closed one

The survey provides insight into a labour market that is becoming more cautious rather than collapsing. Hiring plans have cooled, and some sectors are under pressure.

Yet technology, manufacturing and emerging clean energy fields continue to create opportunities. At the same time, employers seem to be willing to reward workers who invest in both technical and human skills.

For Singaporeans navigating a softer job market, the lesson is to keep learning, stay adaptable and build skills that solve real business problems. Companies may be hiring fewer people, but they are still searching for the right ones.

Read related: SG Ministry of Manpower wage report 2025: Which industries are workers’ salaries rising the fastest in Singapore