Hiring outlook improves in Q2 despite economic uncertainty

Net Employment Outlook for Q2 stands at +27%,  a 2-point QoQ increase.

Singapore’s hiring landscape remains steady despite ongoing global economic uncertainty, as employers continue their recruitment efforts.

According to the latest ManpowerGroup Employment Outlook Survey, the country’s Net Employment Outlook (NEO) for Q2 2025 stands at +27%, marking a 2-point increase from Q1 2025 and a 3-point rise compared to the same period last year.

Business expansion remains the key driver of hiring activity, with 41% of employers planning to recruit due to company growth.

The Healthcare & Life Sciences sector leads hiring demand, reporting a 49% NEO, up 9 points from the previous quarter and 13 points year-on-year (YoY. The Transport, Logistics & Automotive industry, whilst experiencing a 31-point quarterly decline, still reflects a 21-point increase compared to last year.

Meanwhile, Information Technology (27%) and Financials & Real Estate (29%) maintain a stable employment outlook.

However, some industries, such as Energy & Utilities (8%) and Consumer Goods & Services (18%), face hiring slowdowns, with both sectors showing notable YoY declines.

Beyond business expansion, employers are hiring to meet the growing demand for specialised skills and technological expertise.

The need to remain competitive is pushing companies to recruit for tech-driven roles (33%), whilst backfilling vacant positions (32%) and adapting to evolving service needs (31%) are also contributing factors.

The Transport, Logistics & Automotive sector (56%) is at the forefront of job creation due to technological advancements, followed closely by Financials & Real Estate (35%).

Despite strong hiring sentiment, some employers anticipate workforce reductions, citing economic challenges (39%), restructuring (36%), and automation replacing jobs (31%) as key concerns.

Larger organisations continue to demonstrate the strongest hiring intentions, with companies employing 1,000–4,999 workers (40%) leading the way, whilst smaller businesses with fewer than 10 employees (29%) report the weakest outlook.

Singapore’s +27% NEO places it amongst the stronger labor markets globally, closely aligning with the global Net Employment Outlook of +25%.