Post by : Shakul

Singapore, April 14, 2026 — Hiring activity and wage growth in Singapore are expected to slow in 2026 as geopolitical uncertainty linked to the West Asia conflict weighs on business confidence. This outlook was highlighted in the latest macroeconomic review by the Monetary Authority of Singapore.

The central bank noted that companies are likely to take a more cautious approach toward manpower expansion. Compared to 2025, salary increments are expected to be more moderate as firms adjust to a less certain global economic environment.

This assessment is partly based on a business optimism index compiled by the Singapore Commercial Credit Bureau, which showed a slight decline in overall business sentiment during the conflict period.

Employment growth is also projected to ease, particularly among non-resident workers, aligning with the broader economic slowdown. However, resident employment is expected to remain stable, supported by demand in domestic-oriented sectors such as healthcare, education, and public administration.

The report also highlighted ongoing shortages in skilled roles, especially in technology and engineering sectors. Rapid technological advancements continue to drive demand for skilled workers, helping to sustain hiring in these critical areas.

Sectors that are more exposed to rising energy prices may experience a slowdown in recruitment. Despite this, the overall labor market is expected to remain balanced, with no major disruptions anticipated in the short term.

On wages, the Monetary Authority of Singapore expects nominal wage growth to moderate compared to 2025. While pre-committed salary increases and government-backed initiatives like the Progressive Wage Model will provide some support, a prolonged economic slowdown could lead to weaker hiring and potential job losses.

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