SNEF poll: Over half of employers in Singapore freezing hiring or moderating wages

Summary

• A SNEF survey found 54% of employers don't plan to increase headcount in 2027, while 51% expect to freeze or moderate wages.

• The survey covered more than 300 companies employing nearly 160,000 workers across 20 industries between June and August 2026.

• Rising manpower costs remained the top business challenge, cited by 83% of employers, up from 79% in 2025.

SINGAPORE: Singapore’s employers are feeling a little better about business prospects, but they aren't exactly rushing to hire or open their wallets.

More than half of firms surveyed by the Singapore National Employers Federation (SNEF) don't plan to increase headcount in 2027. Half also expect to freeze or moderate wages.

The survey gathered responses from more than 300 companies across 20 industries. Together, they employ nearly 160,000 workers across small, medium-sized, and large firms.

Business outlook improves, but unevenly

There are some brighter signs. The share of employers expecting uncertain business prospects in 2027 fell to 63%, from 72% in 2026.

About 65% also expected their companies to perform well in 2026, up from 63% in 2025. Still, SNEF indicated conditions vary sharply between sectors.

Export-focused industries are seeing stronger demand linked to overseas markets and technology. Retail and food and beverage businesses face weaker consumer demand and higher operating costs.

Small and medium-sized firms reported more uncertainty and weaker performance. They were also more likely to freeze or moderate wages.

Hiring plans are cautious

About 54% of employers don't plan to increase headcount next year. That figure was 58% in last year’s survey.

There is some movement in the other direction. Some 40% plan to hire in 2027, up from 33% planning to hire for 2026. Only 6% expect to reduce headcount, down from 8% previously, based on a report by Vulcan Post.

Pay plans tell a similar story. Some 51% expect wage moderation or freezes, compared with 48% for 2026.

Among firms employing lower-wage workers, 86% still plan built-in wage increases in 2027. The remaining 14% plan freezes, while none plan wage cuts.

Costs and skills stay on employers’ minds

Manpower costs stayed the biggest challenge, with 83% of employers citing them. That was up from 79% in 2025. Concerns about upskilling and reskilling costs also rose, from 23% to 30%.

At the same time, fewer firms reported trouble finding professionals, managers, executives and technicians. The share fell to 41% from 47%.

SNEF Council Vice-President Kuah Boon Wee said labour pressure had eased somewhat, but cost pressures and uncertainty still weighed on employers.

Mr Kuah also pointed to continued investment in workforce skills, job redesign and AI as ways to lift productivity.

For workers, however, a better outlook doesn't automatically mean bigger pay cheques or more jobs, as employers are still counting every dollar.

The sensible path is to keep building useful skills while businesses find ways to raise productivity without simply passing costs on to workers.