Hiring cools as employers chase AI skills

Firms remain eager to pay high wage premiums for proven AI literacy.

Employers reported lower hiring sentiment for the third quarter of 2026, with the majority expecting to maintain their current staff count.

The latest ManpowerGroup Employment Outlook Survey showed that hiring sentiment declined in the third quarter of 2026. The seasonally adjusted Net Employment Outlook (NEO) settled at +13%, its lowest level since the fourth quarter of 2021, when the Outlook stood at -2%.

“Singapore’s Outlook is also below the Asia Pacific and Middle East regional average (+28%) and the global average (+26%),” the report noted.

Asked about their hiring plans, 41% of the 599 Singaporean employers surveyed said they expect to maintain current staffing levels. Another 35% plan to increase headcount, 22% expect a decrease, and the remaining 2% are uncertain about staffing changes.

“Employers in Singapore are taking a more cautious approach to hiring this quarter, with many choosing to hold steady on headcount until there is greater clarity on geopolitical conditions,” said Linda Teo, country manager of ManpowerGroup Singapore. 

She said hiring decisions are becoming more selective and deliberate, with investment increasingly directed toward skills that deliver the greatest impact.

The survey also found that employers remain willing to pay for a premium for artificial intelligence (AI) and critical thinking skills.

“The continued willingness to pay a premium for AI and critical thinking capabilities reflects a skills-based approach to hiring, as organizations focus on strengthening productivity, efficiency, and long-term competitiveness even as overall hiring sentiment softens,” Teo said.

The survey found that 66% of employers said they are willing to pay a premium for AI literacy skills, whilst 64% cited AI model and application development skills. Traditional IT and data skills followed, with 56% reporting a willingness to pay more for these capabilities.

A separate report by General Assembly found that 95% of employers still face tech hiring challenges. The gap is most acute in data-related roles, with 58% of employers citing data analytics and data science as the hardest roles to fill.

Meanwhile, Aon’s Human Capital Trends 2026 report said that 42% of employers in Singapore said they have deployed AI, whilst 38% are piloting it. However, only 24% said they can recruit and retain enough talent with AI skills.

“What is clear from the latest findings is how deliberately employers are directing their talent investment. Organizations are placing greater emphasis on building capability in areas that support transformation and execution,” Teo said.

“This reinforces the importance of a human-first, digital-always approach—centering workforce strategy on people, whilst leveraging technology to amplify human capability,” she added.