Survey shows rising uncertainty as businesses prepare for tighter budgets and cautious manpower decisions.
Singaporean employers are entering 2026 on guarded footing, with new survey findings revealing widespread plans for hiring freezes, moderated salary growth, and heightened concerns over rising manpower costs. The latest data from the Singapore National Employers Federation (SNEF) offers a clear snapshot of a labor market shaped by global uncertainty and tightening business conditions.
Employers Expect Tougher Business Conditions
Survey results from around 240 employers, collected between June 25 and August 15, highlight a sobering business outlook. Over 70 percent of companies foresee greater uncertainty in 2026, compared with 58 percent previously. A similar survey of 238 employers also revealed that 72 percent faced uncertain prospects in 2025, underscoring a trend of persistent instability.
Hiring Freezes Become the Default Strategy
Close to three in five employers, or 58 percent, are planning to freeze hiring in 2026. This marks a sharp climb from 50 percent in 2025 and signals the slowest manpower expansion pace in recent years. Larger firms with more than 200 employees are notably more inclined to reduce headcount, while smaller businesses with fewer than 50 staff lean toward freezing roles without layoffs.
Meanwhile, only a third of employers expect to increase hiring, and about 8 percent plan reductions, mirroring 2024 levels.
Rising Manpower Costs Remain the Top Challenge
Manpower costs continue to be the biggest strain, cited by 79 percent of employers. Other concerns include difficulties in attracting and retaining professionals, managers, engineers, and technicians, along with a shortage of high-skilled local talent. To cope, many companies are turning to upskilling and reskilling strategies to keep pace with evolving business demands.
Flexible Work Arrangements Lose Momentum
Despite earlier momentum for workplace flexibility, only 30 percent of employers are willing to provide additional flexible work options, down from 49 percent in 2024. More companies instead prioritize competitive salary and benefits packages, though even this figure dipped from 70 percent to 62 percent over the past year.
Wage Moderation Expected Across 2026
Wage growth is also tightening. Nearly half of employers, or 48 percent, plan to moderate wages or freeze salaries in the upcoming financial year, a notable rise from 38 percent previously. Companies expecting weaker performance in 2025 intend to issue smaller increments than those anticipating stronger results.
Lower-Wage Workers Still Prioritized
Despite overall caution, most employers remain committed to supporting lower-wage workers. An encouraging 96 percent of employers plan built-in wage increases for employees earning up to 2,700 Singapore dollars per month. Almost 40 percent will grant higher increments to lower-wage workers than to other staff, while 33 percent are planning similar adjustments across all employee groups. SNEF CEO Hao Shuo emphasized that such efforts build resilience and help businesses prepare for future opportunities.
The combined findings show a business landscape defined by caution, cost pressures, and changing talent dynamics. For both Indonesians observing Singapore’s economic direction and Singaporeans navigating the shifting job market, 2026 may bring slower hiring but continued emphasis on workforce development and support for lower-income groups. The evolving strategies reflect employers’ determination to remain stable and adaptable in a climate marked by global uncertainty.
Sources: Asia One (2025) , Straits Time (2025)
Keywords: Hiring Freeze Singapore, Wage Moderation 2026, SNEF Survey, Manpower Costs Singapore, Labor Market Uncertainty
