EMPLOYERS, especially those in the financials and real estate sector, are choosing to stay cautiously optimistic as Singapore’s economy gains momentum.
Hiring sentiment in Singapore remains relatively stable, with employers reporting a strong outlook for staffing levels in the first quarter of 2025, according to the latest ManpowerGroup Employment Outlook Survey which covered 42 countries.
In Singapore, 525 employers across nine sectors were asked about their hiring plans, with 45 per cent planning to hire, 20 per cent expecting staff reductions, and 34 per cent foreseeing no change in staffing levels for the next quarter.
Employers across eight sectors expect to increase headcount, with the transport, logistics and automotive sector leading, followed by healthcare and life sciences, and the financials and real estate sector in third place.
“The financials and real estate sector can be seen as a reflection of broader economic uncertainties, where companies typically opt to adopt a more cautious approach during uncertain times,” Linda Teo, country manager at ManpowerGroup Singapore, told The Business Times.
She noted that uncertainty surrounding global economic policies and potential market volatility likely influenced hiring sentiments in the sector, particularly given Singapore’s open economy and the timing of the survey in October 2024, before the US elections.
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“This cautious stance is further compounded by uncertainty around interest rates which, if raised, would increase borrowing costs and dampen demand in the property sector, potentially influencing hiring in related fields,” Teo added.
2025 employment outlook
Signalling a shift in employer sentiment, the financials and real estate sector recorded a net employment outlook (NEO) of 36 per cent. This marked a decline of 28 percentage points from the previous quarter and a three-percentage-point drop compared to the same period last year.
NEO is a widely used indicator of economic and labour market trends, calculated by subtracting the percentage of employers anticipating staffing reductions from those planning to hire.
Globally, the NEO for the financials and real estate sector stands at 33 per cent, reflecting a one-percentage-point increase from the previous quarter and remaining unchanged compared to the same period last year.
In Singapore, the overall NEO after seasonal adjustments is 25 per cent, representing a four-percentage-point decline from both the previous quarter and the same time last year.
“Despite a slight slowdown in hiring intentions from the previous quarter, the local labour market remains resilient, serving as a source of stability and consistency during these uncertain times,” said Teo.
Across the Asia-Pacific region, hiring managers forecast the second-strongest regional outlook, with a NEO of 27 per cent. This figure remained steady from the previous quarter, but decreased by three percentage points compared with the same period last year.
India (40 per cent), China (29 per cent) and Singapore (25 per cent) continued to report the strongest outlooks in the region. On the other hand, employers in Hong Kong had the most cautious outlook, at just 6 per cent.
Within the financials and real estate sector, employers in China were planning to hire at a significantly higher rate with a NEO of 53 per cent, the highest globally.
