Singapore insurers face pressure as hiring outlook slips

Net Employment Outlook stands at +13% compared with +33% across Asia-Pacific and the Middle East.

Singapore’s more cautious approach to hiring could put pressure on insurers and employee benefits providers as employers become more selective about adding staff and take longer to fill vacancies, according to ManpowerGroup’s latest Employment Outlook Survey.

Singapore’s seasonally adjusted Net Employment Outlook (NEO) was +13% for the fourth quarter of 2026, unchanged from the previous quarter but down seven percentage points from a year earlier. 

The figure was also below the Asia-Pacific and Middle East (APME) average of +33% and the global average of +29%.

The survey of 651 Singapore employers found that 47% plan to keep their headcount unchanged in Q4, whilst 32% expect to increase staffing and 19% expect to reduce it. The remaining 2% were uncertain.

For insurers, the more selective hiring environment could affect demand for employer-sponsored benefits, particularly group health, life and other employee protection products, as companies reassess workforce costs and prioritise spending on critical roles.

The survey also found signs of a tighter labour market, with 33% of employers saying it is taking longer to fill vacancies than a year ago. 

Another 42% reported no change, whilst 24% said vacancies were being filled more quickly.

Amongst employers facing longer hiring times, 43% cited a mismatch between candidates and available jobs as the main challenge. 

This was followed by a lack of candidates with the required skills at 35% and a shortage of qualified candidates in the local market at 29%.

Employers that are filling roles at the same speed or faster cited better targeting of candidates at 27% and greater workplace flexibility at 23% as factors helping them recruit more quickly.

Despite the cautious hiring outlook, employers continue to invest in early-career workers. 

Some 37% said they had increased early-career hiring from a year ago, whilst 39% reported no change and 22% reported a decline.

Amongst employers reducing early-career hiring, AI-driven automation was the most commonly cited reason at 38%, followed by cost pressures leading companies to favour more experienced workers at 34% and an overall reduction in hiring activity at 30%.

“Organisations remain prepared to invest in talent where there is a clear business need, but many are becoming more disciplined in how they allocate headcount,” said Linda Teo, country manager of ManpowerGroup Singapore.

“Rather than pursuing broad-based workforce expansion, employers are increasingly prioritising hires that support transformation, address critical capability needs, and strengthen long-term competitiveness.”