Singapore employers willing to pay premium for AI skills amid softer hiring sentiment: survey
Singapore employers are scaling back hiring plans for Q3 2026, with a net employment outlook of 13%, the lowest since late 2021, but remain willing to pay premium salaries for AI and critical thinking skills. The survey by ManpowerGroup highlights a cautious hiring approach, with 66% of firms offering higher pay for AI literacy and 64% for AI model development expertise, particularly in sectors like public services, tech, and healthcare.
Singapore’s hiring sentiment has weakened significantly, with employers reducing headcount growth projections for the third quarter of 2026. According to ManpowerGroup’s latest Employment Outlook Survey, the net employment outlook (NEO) among 599 employers stands at 13%, an 11-point drop from the previous quarter and year, marking the lowest hiring forecast since Q4 2021. The NEO is calculated by subtracting the percentage of employers planning staff reductions from those hiring, with 35% of firms expecting to increase headcounts, 41% anticipating no change, and 22% forecasting staff cuts. Despite the cautious outlook, employers are prioritizing high-impact skills, particularly in artificial intelligence (AI). Sixty-six percent of firms are willing to pay a premium for AI literacy skills, such as using AI tools, while 64% will offer higher salaries for AI model and application development expertise. Traditional IT and data skills remain in demand, with 56% of employers valuing them. The public sector, health and social services, and tech and IT services are the most eager to invest in AI talent, with premiums ranging from 69% to 78%. Industry hiring intentions vary, with manufacturing leading at a 25% NEO, though down slightly from previous periods. The information sector saw a sharp decline, dropping 34 points to 7%, while tech and IT services remained stable at 18%. Linda Teo, ManpowerGroup’s country manager, noted that employers are adopting a more selective and deliberate hiring approach, waiting for clearer economic conditions before expanding headcounts. The survey highlights a shift toward skills-based hiring, with companies focusing on AI and critical thinking to drive productivity. Among firms maintaining current staffing levels, 38% believe their workforce is sufficient, while 27% are waiting for economic clarity before hiring. The cautious stance reflects broader uncertainty, particularly around geopolitical conditions, influencing hiring decisions across industries.
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