Singapore's labour market stays resilient amid 'talent paradox'

Recruitment New report reveals softening hiring demand, more selective jobseekers in Singapore. Singapore's labour market remained resilient despite geopolitical tensions overseas, but experts are warning of an emerging 'talent paradox'. The latest Labour Market Advance Release showed that employment grew by 5,000 in the first quarter of 2026, extending its expansion for the 18th consecutive quarter. Employment growth was higher than the 2,300 recorded in the first quarter a year ago but less than the 17,700 recorded in the fourth quarter of 2025. The Ministry of Manpower (MOM) attributed this moderation to seasonal effects and a step-down from a high base. Unemployment rose slightly to 2.1% in March 2026, though it remained stable compared to 2.0% in December 2025. Retrenchments stayed low, with an incidence rate of 1.5 per 1,000 employees, unchanged from the fourth quarter of 2025. Businesses are expected to be cautious in hiring and wage plans amid increased economic uncertainty due to geopolitical tensions. Hiring intentions fell to 44.6%, and wage expectations declined to 25.4%. Job postings data from JobStreet by SEEK showed a slight rise quarter-on-quarter but remained below year-ago levels. The 'talent paradox' is characterized by a mismatch: job applications are concentrated in accounting, logistics, and operations, while hiring demand shifts toward specialized technical roles. Employers report receiving more applications but struggling to find the right candidates. Jobseekers are becoming more selective, prioritizing roles offering flexibility, stability, or purpose, even if it means trading down in title or pay. Employers are advised to tap into reskilling and upskilling schemes like the Career Conversion Programmes and Mid-Career Pathways Programme. The new SkillsFuture Workforce Development Grant (Job Redesign+) offers up to 70% funding support for workforce transformation projects, capped at $150,000 per enterprise, with higher support for SMEs.