In an more and more risky enterprise setting, extra employers are planning to freeze hiring and average wages in 2026, a survey by the Singapore Nationwide Employers Federation (SNEF) confirmed on Tuesday (Dec 2).
Out of 240 corporations polled, virtually three in 5 (58%) stated they plan to freeze hiring in 2026—up from 50% in 2024. Smaller employers had been much more cautious, with 63% indicating they’re prone to halt new hires.
Alternatively, round 8% of employers plan to scale back headcount, which has similarities to 2024’s 9%. Of this, 12% of bigger employers usually tend to scale back their headcount. Solely a 3rd of respondents plan to extend hiring.
These hiring choices come as enterprise sentiment weakens, with 72% of employers reporting unsure prospects this yr—a pointy rise from 58% in 2024.
Near 50% plan to train wage moderation or a wage freeze
Near half of the employers (48%) additionally plan to implement wage moderation or a wage freeze for FY2025/2026, a rise of 10% from the final monetary yr. Many indicated that they anticipate to grant smaller wage increments in comparison with final yr.
“This means extra warning in wage outlook amongst employers, significantly amongst small and medium-sized employers,” the federation added.
Most of those corporations (79%) cited rising manpower prices as a key problem, roughly in keeping with 2024’s 81%. As well as, 47% employers highlighted difficulties in attracting and retaining professionals, managers, engineers, and technicians, whereas 42% indicated a scarcity of high-skilled expertise.
To handle these obstacles, 62% of employers plan to supply a aggressive wage and advantages package deal. One other methodology of assuaging manpower challenges is upskilling/reskilling workers to fulfill evolving enterprise wants, with 45% employers doing so.
A smaller proportion of employers (30%) are additionally keen to supply extra versatile working preparations.
Companies are sustaining help for lower-wage staff
Regardless of the cautious outlook, SNEF highlighted that 96% of employers using decrease wage staff deliberate to supply them with built-in wage will increase within the coming yr, “reflecting continued employer dedication to uplift this body of workers.”
Practically 40% of employers meant to provide proportionally larger increments to lower-wage staff than to different workers, whereas 33% deliberate related increments for all workers. The rest indicated that different elements, akin to efficiency, can be extra vital than a differentiated wage improve based mostly on wage ranges.
“It’s heartening to see that many employers proceed to spend money on their folks, particularly lower-wage staff, as such investments finally assist them construct a stronger, extra resilient, and future-ready workforce that may assist companies seize new alternatives in unsure instances,” stated Hao Shuo, Chief Govt Officer of SNEF.
Employers had been additionally inspired to align their wage choices with the not too long ago launched Nationwide Wages Council Pointers, “in order that wage changes are truthful and sustainable,” Hao added.
- Learn different articles we’ve written on Singapore’s job market right here.
Featured Picture Credit score: Shadow_of_light/ depositphotos
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