Singapore hiring to slow in 2026 with 3-6% wage rises expected

Hiring in Singapore is expected to slow down in 2026. This is a change from the fast growth seen after the pandemic.
By Newsroom | Economy, Singapore |

Singapore's labour market, after a period of robust post-pandemic recovery, is signalling a shift towards stabilised growth, with forecasts pointing to a slowdown in hiring and more measured wage increases for 2026. The Monetary Authority of Singapore (MAS) review suggests global uncertainty, particularly concerning energy supplies, could temper expansion, while employers are increasingly opting for more flexible staffing models.

HIRING SEEN TO EASE AMID GLOBAL UNCERTAINTY

Hiring activity in Singapore is projected to ease in 2026. While the labour market has remained resilient, the MAS points to continued uncertainty over global energy supplies as a factor that could dampen the economic outlook. Some sectors, especially those exposed to rising energy costs, may scale back recruitment efforts.

This projected moderation follows a period of rebound, indicating a transition from rapid expansion to a more settled phase of growth.

  • Domestic-oriented services and modern services sectors were highlighted as key areas of growth, suggesting a continued focus on internal demand and evolving service industries.

  • Productivity gains within the services sector have, for now, helped to keep unit labour costs in check, limiting inflationary pressures.

  • However, an increasing preference for contract roles is emerging, with employers seeking agility and specialised skills while remaining cost-conscious. This trend is particularly noted in areas like cybersecurity and enterprise software, and also impacts manufacturing and general office support.

While overall hiring might slow, certain sectors are expected to see continued demand.

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  • Financial services and hospitality are anticipated to experience higher employment growth, according to some analysts.

  • However, even within these sectors, hiring priorities are evolving.

  • Contract hiring is becoming a more common strategy, driven by employers' need to mitigate the impact of higher foreign labour costs and to access specialised expertise for project-based work.

Compensation forecasts suggest a tempering of wage growth compared to previous expectations.

  • Most employers are planning pay rises within the 3% to 6% range for 2026.

  • A smaller proportion of employers, around 23%, are planning increases of 5% or more, a slight dip from the previous year.

  • For job seekers, expectations remain higher, with a significant majority anticipating pay increments exceeding 10% when switching roles.

  • Bonuses are also seeing a subtle shift, with a larger percentage of employers awarding a standard one-month bonus.

BACKGROUND: A SHIFT FROM RECOVERY TO RESET

The current outlook signifies a move from a post-pandemic recovery phase to what is being described as a 'reset' for Singapore's labour market. Historically, the nation's strategic advantages, including its pro-business policies and focus on education, have attracted multinational firms and regional talent. Now, the market is adapting to a more complex global landscape.

  • The digital economy continues to be a strong competitive advantage, attracting investment and creating high-value jobs.

  • Beyond salary, candidates are increasingly evaluating employers based on the quality of total rewards and workplace culture.

  • The need for reskilling and upskilling remains a critical factor for talent to stay competitive in the evolving job market.

Frequently Asked Questions

Q: Why is Singapore's job market slowing down in 2026?
Global uncertainty, especially with energy supplies, is making companies less sure about the economy. This means they might hire fewer people and give smaller pay raises.
Q: What will happen to wages in Singapore in 2026?
Most companies plan to give pay rises between 3% and 6% in 2026. This is slower than before. Some workers still expect more than 10% when changing jobs.
Q: Will all jobs in Singapore be affected the same way in 2026?
No, some areas like financial services and hospitality might still hire more people. However, many companies are using more contract workers to be flexible and save money.
Q: What should workers do in Singapore's changing job market in 2026?
Workers should focus on learning new skills to stay competitive. They should also look at the total benefits and company culture, not just the salary, when choosing a job.