11-9-2024 (SINGAPORE) The employment landscape in Singapore appears to be brightening as the year draws to a close, with a recent survey revealing a marked increase in hiring intentions among local employers. This surge in optimism marks the first positive shift in sentiment for 2024, offering a glimmer of hope for job seekers in the city-state.
According to a comprehensive poll conducted by recruitment firm ManpowerGroup, a significant 46% of companies surveyed are planning to expand their workforce in the fourth quarter of 2024. This figure stands in stark contrast to the 36% of employers who intend to maintain their current staffing levels and the 17% anticipating a reduction in their workforce.
The survey, which canvassed 525 Singapore-based employers in July, focused on hiring plans for the October to December period. The resulting net employment outlook – a key indicator of hiring optimism – stands at an impressive 29% after seasonal adjustments. This represents a notable 9 percentage point increase from the third quarter of 2024, effectively halting a three-quarter streak of declining sentiment.
However, it’s worth noting that despite this encouraging uptick, the fourth-quarter figure still lags 7 percentage points behind the same period in 2023, suggesting a degree of caution remains in the market.
Linda Teo, ManpowerGroup Singapore’s country manager, offered a measured perspective on the findings. “We find ourselves at a crucial juncture where the economy and job market could either trend towards recovery or face further headwinds,” she remarked. “Given Singapore’s open economic structure, the sustainability of this hiring optimism amidst global uncertainties remains to be seen.”
The survey results paint a picture of broad-based optimism, with hiring intentions positive across eight of the nine sectors analysed. The finance and real estate sector emerges as the most bullish, boasting a remarkable net employment outlook of 64% – a staggering 49 percentage point increase from the previous quarter and 18 percentage points year-on-year.
This surge in the finance and real estate sector is partly attributed to the growing emphasis on quantum and artificial intelligence technologies within financial institutions, which is expected to drive job creation. Notably, nearly 90% of employers in this sector reported difficulties in sourcing skilled talent, highlighting a potential skills gap in these emerging areas.
The communication services sector also witnessed a dramatic improvement, with hiring expectations soaring to 35% in the fourth quarter from a previous negative outlook of -33% in Q3.
Conversely, the energy and utilities sector appears to be bucking the positive trend, with employers signalling intentions to reduce headcount. The sector’s net employment outlook plummeted to -30% from 20% in the third quarter.
In a regional context, Singapore’s outlook appears robust. ManpowerGroup’s broader survey of 41 markets in the Asia-Pacific region places Singapore’s hiring intentions behind only India (37%) and China (27%), while Hong Kong employers reported the most cautious outlook at 8%.
The survey also delved into other aspects of employer sentiment, revealing that a majority of Singapore employers feel they hold the upper hand in negotiations regarding pay, work location, and flexible hours. In terms of employee retention strategies, 61% of employers are focusing on improving work-life balance, 50% are investing in manager training to better support workers, and 48% are actively working to reduce employee stress levels.
