Employers in Singapore more optimistic about hiring, nearly half plan to raise headcount in Q4, survey shows

SINGAPORE — Things are looking up for job seekers here, with a poll of employers showing that nearly half plan to hire in the fourth quarter of 2024, the first uptick in sentiment for the year.

A total of 46 per cent of companies surveyed plan to increase their headcount, while 36 per cent plan to maintain their staffing levels and 17 per cent expect to have fewer staff, said recruitment firm ManpowerGroup on Sept 10.

The firm surveyed 525 Singapore employers in July about their hiring plans from October to December and calculated the net employment outlook, which is a measure of hiring optimism defined as the percentage of companies surveyed that intend to take on new staff, minus the percentage that intend to downsize.

The figure for the fourth quarter is 29 per cent after adjusting for seasonal changes. It is up 9 percentage points from the third quarter of 2024, and marks the first improvement after three consecutive quarters of decline.

However, the fourth-quarter figure is seven percentage points lower than that of the fourth quarter of 2023.

The mood may still sour.

ManpowerGroup Singapore country manager Linda Teo said: "We are at a tipping point where the economy and job market could either move towards recovery or face a further slowdown. Given Singapore's open economic landscape, it remains to be seen if hiring optimism will continue amid global uncertainties."

But for now, the optimism for the fourth quarter is broad-based, with employers in eight of nine categories expected to hire.

ManpowerGroup noted that the most competitive sector is finance and real estate, which has a net employment outlook of 64 per cent, up 49 percentage points from the previous quarter and 18 percentage points since the fourth quarter of 2023.

Nearly nine in 10 employers polled in this sector said they found it difficult to get the skilled talent they need.

The growing emphasis on quantum and artificial intelligence technologies within financial institutions is expected to fuel job creation in the sector, said Ms Teo.

Communication services also saw a big jump in hiring expectations to 35 per cent in the fourth quarter, from minus 33 per cent in the third quarter.

On the other hand, energy and utilities employers are planning to cut back, with the sector's net employment outlook dropping to minus 30 per cent, from 20 per cent in the third quarter.

Besides Singapore, India (37 per cent) and China (27 per cent) reported the strongest outlooks in the Asia-Pacific region, based on ManpowerGroup's wider survey of 41 other markets. The most cautious outlook of 8 per cent was reported by employers in Hong Kong.

The survey also looked at other aspects of employer sentiment and found that the majority of employers in Singapore felt they hold the power when it comes to negotiating pay, working location and flexible working hours.

As for how they intend to retain employees, 61 per cent are working to increase work-life balance, 50 per cent are training managers to better support workers and 48 per cent are seeking to reduce worker stress.

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This article was first published in The Straits Times. Permission required for reproduction.