Slowdown in Hiring and Wages Anticipated for Singapore in 2026

Singapore, April 14, 2026 — A deceleration in hiring and wage growth is on the horizon for Singapore in 2026, largely due to geopolitical uncertainties arising from the conflict in West Asia, which is affecting overall business confidence. This assessment is articulated in the latest macroeconomic review by the Monetary Authority of Singapore.

The central bank indicated that businesses are expected to adopt a more cautious stance regarding workforce expansion. Salary increases are projected to be subdued compared to 2025 as companies navigate a more unpredictable global economic landscape.

This outlook is informed by a business optimism index from the Singapore Commercial Credit Bureau, which revealed a modest decline in business sentiment during the conflict period.

Employment growth is also anticipated to diminish, particularly among non-resident workers, reflecting the broader economic slowdown. Conversely, resident employment is expected to hold steady, bolstered by demand in domestic sectors such as healthcare, education, and public administration.

The report also noted persistent shortages in skilled professions, particularly within technology and engineering sectors. Continuous advancements in technology are fueling demand for skilled labor, thereby sustaining recruitment in these essential fields.

Industries more vulnerable to rising energy costs may see a further dip in hiring. Nevertheless, the overall labor market is forecasted to maintain a balanced state, with no significant disruptions expected in the near term.

Regarding wages, the Monetary Authority of Singapore predicts a moderation in nominal wage growth relative to 2025. While established salary increases and government-backed programs like the Progressive Wage Model are likely to provide some stability, a lengthy economic downturn could threaten recruitment rates and potentially lead to job losses.