Four in ten employers plan to add jobs in 2025 amidst growth needs

76% of firms hiring are doing so to support business growth, whilst 46% are seeking candidates with new skill sets.

Despite macroeconomic uncertainty, 42% of Singapore employers plan to increase headcount in the first half of 2025, driven by business expansion and demand for new skills, according to a report from Jobstreet.

The report, which gathered responses from over 400 businesses, found that 76% of firms hiring are doing so to support business growth, whilst 46% are seeking candidates with new skill sets. This comes even as 21% of companies reported retrenchments in the past year.

Despite layoffs in some quarters, Singapore’s unemployment rate remained low at 1.9%, with over 60% of retrenched workers re-employed within six months.

Salary trends remain modest. The majority of employers (79%) offered a salary increment to employees in 2024, mostly in the range of 1% to 5%.

Promotions were also cautious. Around 54% of companies granted promotions, but most increases stayed within the same 1–5% range.

In terms of talent priorities, knowledge of AI is becoming a differentiator, with 54% of employers valuing it in job candidates.

However, the report observed a gap in adoption. Only 15% of organisations surveyed currently use AI tools in their hiring process, primarily for tasks such as screening and writing job advertisements.

As for benefits, companies are increasingly offering perks aligned with flexibility and wellness. 66% provide flexible work locations, and 49% offer flexible hours, whilst 67% cover medical insurance and 60% include dental.

Notably, diversity and inclusion efforts remain patchy. Only 42% of companies reported having DEI initiatives, with 25% admitting they had no such plans due to resource constraints or uncertainty over return on investment.