A recent survey by the Singapore National Employers Federation (SNEF) shows that many employers are preparing for a cautious year ahead, with a significant number planning to freeze hiring in 2026. The survey, conducted from June 25 to August 15, gathered responses from about 240 employers representing more than 120,000 workers. According to SNEF, nearly three in five employers expect to freeze headcount next year as business conditions continue to remain uncertain.
The survey results revealed that 72 per cent of employers are experiencing uncertain business prospects in 2025, a noticeable increase from 58 per cent in 2024. With this rise in uncertainty, 58 per cent of employers said they intend to freeze hiring in 2026, compared to 50 per cent the year before. SNEF also highlighted that smaller employers are more likely to freeze headcount, with 63 per cent of them planning to do so. At the same time, the proportion of employers planning to reduce headcount remains similar to last year, with larger companies being the ones more likely to cut staff.
The survey also looked at wage expectations and HR priorities. Close to 48 per cent of employers plan to moderate wages or freeze pay for the 2025/2026 financial year, a rise of 10 percentage points compared to the previous year. SNEF said, “This indicates more caution in wage outlook among employers, particularly among small and medium-sized employers.”
Main Manpower Challenges Identified
Employers identified rising manpower costs as the biggest challenge they anticipate facing over the next 12 months. Other key challenges included the difficulty of attracting and retaining professionals, managers, executives and technicians (PMETs), as well as the shortage of highly skilled local talent.
To address these manpower issues:
- 62 per cent of employers planned to offer competitive salary and benefits packages, a decrease from 70 per cent in 2024.
- Some employers also planned to focus on upskilling or reskilling employees to support changing business needs.
- Interest in flexible work arrangements dropped significantly, from 49 per cent in 2024 to 30 per cent in 2025.
Support for Lower-Wage Workers Remains Strong
Despite the cautious outlook, many employers still intend to support lower-wage workers. According to SNEF, 96 per cent of employers who employ lower-wage workers plan to give them built-in wage increases, saying it reflects their commitment to uplifting this group. Nearly 40 per cent of employers also intend to give higher increments to lower-wage workers compared to others, while 33 per cent expect to give similar increments across all employees.
SNEF Chief Executive Officer Hao Shuo commented on the overall mood of employers. He said, “Employers are navigating 2026 cautiously, in view of rising costs of doing business and uncertainties in the overall global economy.” He added that “many employers continue to invest in their people, especially lower-wage workers, as such investments ultimately help them build a stronger, more resilient, and future-ready workforce that can help businesses capture new opportunities in uncertain times.”
Mr Hao also encouraged employers to follow the latest National Wages Council guidelines “so that wage adjustments are fair and sustainable”.
