Singapore’s job market charters new waters in H1 2025 amidst the impact of the trade war and cost-cutting exercises
As the first half of 2025 unfolds, Singapore’s job market continues to chart new waters amidst ongoing global challenges, including the trade war and pressures to reduce costs. Despite these external hurdles, the employment landscape is showing resilience and adaptability. According to the Jobstreet by SEEK’s Hiring, Compensation and Benefits 2025 report, 42% of employers are planning to expand their permanent headcount in H1 2025, marking a significant increase from 32% in the latter half of 2024.
Economic uncertainty meets recovery in H1 2025
Although global economic uncertainty continues to loom, including the impact of the trade war and high operational costs, Singapore’s job market has demonstrated surprising resilience. The country’s Q4 2024 GDP growth of 5% and a more optimistic regional economic outlook have played a role in strengthening market confidence. Companies that previously restructured during tougher times are now looking to invest in key roles to drive business growth and innovation.
The Jobstreet report highlights that 76% of employers in Singapore are hiring to support business expansion, while 46% are adding new roles to meet the evolving skill demands. Meanwhile, 41% of employers are addressing high staff turnover by boosting recruitment efforts, signaling that despite a tight labour market, demand for talent remains robust.
Flexibility and agility: The new hiring norms
One of the most significant shifts in H1 2025 is the growing reliance on flexible workforce models. In the first half of this year, 31% of employers indicated they would be relying more on contract, part-time, or flexible hires—double the figure from 2024. This change is reflective of businesses seeking greater flexibility in workforce planning as they continue to navigate high operating costs and economic uncertainty.
AI skills: A core requirement in 2025 hiring
In H1 2025, the demand for AI skills in the hiring process has intensified. More than half of Singapore companies (54%) now consider AI knowledge a key criterion when hiring, with 19% listing it as a primary requirement. However, the integration of AI tools into recruitment processes has been slower than expected. Only 15% of companies have implemented AI-driven recruitment tools, with many citing concerns about losing the human touch (44%) and limited knowledge or access to AI technology (40%).
As digital transformation accelerates, HR functions are adopting more advanced technologies, including AI, automation, and analytics, to streamline processes and optimize talent management strategies.
Employee benefits and wellbeing take center stage
In H1 2025, the focus on employee benefits has shifted beyond just salary increases. In 2024, 79% of employers raised salaries and 76% awarded bonuses, but there is now an increasing emphasis on non-monetary benefits that promote wellbeing and work-life balance. Flexible work arrangements, mental health days, and family care support are becoming standard offerings as organizations aim to enhance employee satisfaction and retention.
Additionally, companies are aligning with Singapore’s policies to support working parents. In 2024, businesses introduced additional paternity leave (16%), family care leave (14%), and extended maternity leave (12%)—an ongoing trend that has carried into 2025.
Looking ahead: Navigating challenges and embracing change
As H1 2025 draws to a close, Singapore’s job market continues to navigate a complex global environment shaped by the trade war, cost pressures, and rapid technological change. While challenges persist, businesses are adopting more strategic and forward-thinking approaches to hiring, focusing on high-value roles that will shape the future of their organizations.
With increased demand for senior leadership, strategic HR roles, and tech-driven skills, companies are positioning themselves to thrive in an increasingly competitive and uncertain world. Flexibility in workforce models, a focus on AI integration, and an emphasis on employee wellbeing are all part of the blueprint for success in the months ahead.
