Employers shake off early 2026 gloom as hiring plans rebound

The Information sector is leading the charge with a massive +41% outlook as firms double down on technology-led transformation.

Hiring sentiment improved in the second quarter (Q2) of 2026 as employers continue to navigate ongoing market volatility.

According to the latest ManpowerGroup Employment Outlook Survey, hiring sentiment rebounded in Q2, with the seasonally adjusted Net Employment Outlook (NEO) coming in at +24%. This follows a two‑quarter decline, with the outlook falling from +24% in the third quarter 2025 to +20% in the fourth quarter 2025, and +14% in the first quarter of 2026 before recovering.

Of the 538 employers surveyed about their Q2 hiring plans, 45% plan to increase headcount, 33% expect to maintain current staffing levels, 21% anticipate a decrease in staffing levels, and 1% are uncertain about staffing changes in the upcoming quarter.

The Information sector leads hiring intentions with 58% of employers planning to hire, resulting in a sector Outlook of +41%.

An earlier survey by the Singapore National Employers Federation said thet 58% of employers expect to hold headcount steady in 2026 compared with 50% a year earlier. This was amidst weak business sentiment, with 72% of employers reporting uncertain prospects, up from 58% in 2024.

“The improvement in hiring sentiment this quarter reflects employers’ continued efforts to adapt to evolving business needs,” said Linda Teo, country manager of ManpowerGroup Singapore.

“Whilst much of this momentum is being driven by companies expanding into new areas, organisations are also stepping up their search for fresh skills to maintain a competitive edge — especially in the Information sector, where advancements in technology are creating demand for new expertise and supporting stronger hiring intentions as firms deepen their focus on technology‑led transformation and future capability building,” she added.

The ManpowerGroup study saw that 82% of organisations are already using AI in hiring, onboarding, or training new workers. This places Singapore slightly above the regional average in Asia Pacific & Middle East (81%), and above the global average of 67%.

Across industries, AI usage is highest in Utilities & Natural Resources (89%), Information (87%), and Manufacturing (86%). At the same time, it is lowest in Professional, Scientific & Technical Services (76%), Public Sector and Health & Social Services (73%), and Hospitality (72%).

“Learning and development deliver the highest perceived return on investment from AI, cited by 32% of employers. Scheduling or forecasting (17%) and team performance (12%) follow,” the poll said.

However, the survey also reported that only 4% of organisations said AI fully meets expectations in hiring and training, whilst 10% report no positive return on investment to date.

Privacy and regulatory concerns (16%), insufficient company training (13%), and workers’ lack of AI skills (9%) are the barriers most frequently ranked as the number-one challenge to broader AI deployment,” ManpowerGroup said.