Abstract
A SNEF survey discovered 54% of employers don’t plan to extend headcount in 2027, whereas 51% count on to freeze or average wages.
The survey lined greater than 300 corporations using practically 160,000 employees throughout 20 industries between June and August 2026.
Rising manpower prices remained the highest enterprise problem, cited by 83% of employers, up from 79% in 2025.
SINGAPORE: Singapore’s employers are feeling somewhat higher about enterprise prospects, however they aren’t precisely dashing to rent or open their wallets.
Greater than half of companies surveyed by the Singapore Nationwide Employers Federation (SNEF) don’t plan to extend headcount in 2027. Half additionally count on to freeze or average wages.
The survey gathered responses from greater than 300 corporations throughout 20 industries. Collectively, they make use of practically 160,000 employees throughout small, medium-sized, and huge companies.
Enterprise outlook improves, however erratically
There are some brighter indicators. The share of employers anticipating unsure enterprise prospects in 2027 fell to 63%, from 72% in 2026.
About 65% additionally anticipated their corporations to carry out nicely in 2026, up from 63% in 2025. Nonetheless, SNEF indicated situations differ sharply between sectors.
Export-focused industries are seeing stronger demand linked to abroad markets and know-how. Retail and meals and beverage companies face weaker client demand and better working prices.
Small and medium-sized companies reported extra uncertainty and weaker efficiency. They had been additionally extra more likely to freeze or average wages.
Hiring plans are cautious
About 54% of employers don’t plan to extend headcount subsequent 12 months. That determine was 58% in final 12 months’s survey.
There may be some motion within the different path. Some 40% plan to rent in 2027, up from 33% planning to rent for 2026. Solely 6% count on to scale back headcount, down from 8% beforehand, based mostly on a report by Vulcan Submit.
Pay plans inform the same story. Some 51% count on wage moderation or freezes, in contrast with 48% for 2026.
Amongst companies using lower-wage employees, 86% nonetheless plan built-in wage will increase in 2027. The remaining 14% plan freezes, whereas none plan wage cuts.
Prices and abilities keep on employers’ minds
Manpower prices stayed the largest problem, with 83% of employers citing them. That was up from 79% in 2025. Issues about upskilling and reskilling prices additionally rose, from 23% to 30%.
On the similar time, fewer companies reported hassle discovering professionals, managers, executives and technicians. The share fell to 41% from 47%.
SNEF Council Vice-President Kuah Boon Wee stated labour stress had eased considerably, however price pressures and uncertainty nonetheless weighed on employers.
Mr Kuah additionally pointed to continued funding in workforce abilities, job redesign and AI as methods to raise productiveness.
For employees, nonetheless, a greater outlook doesn’t mechanically imply greater pay cheques or extra jobs, as employers are nonetheless counting each greenback.
The wise path is to maintain constructing helpful abilities whereas companies discover methods to boost productiveness with out merely passing prices on to employees.
