Projected Slowdown in Hiring and Wages for Singapore in 2026

Singapore, April 14, 2026 — The prospects for hiring and wage increases in Singapore are set to diminish next year as geopolitical tensions arising from the West Asia conflict dampen business sentiment. This forecast is detailed in the latest macroeconomic analysis released by the Monetary Authority of Singapore.

The central bank observed that businesses are expected to adopt a more conservative strategy regarding workforce growth. In contrast to 2025, salary hikes are projected to be more subdued as companies adapt to the precarious global economic landscape.

This evaluation is partially grounded in a business optimism index developed by the Singapore Commercial Credit Bureau, which reflects a slight drop in overall business confidence amid the ongoing conflict.

Employment rates are also anticipated to decline, particularly for non-resident employees, mirroring the general economic downturn. Nevertheless, employment for residents should remain steady, driven by demand in sectors such as healthcare, education, and public services.

The report pointed out persistent shortages in skilled positions, particularly in the tech and engineering fields. The rapid pace of technological growth is likely to keep demand for skilled labor strong in these essential sectors.

Industries facing pressures from rising energy expenses may witness a slowdown in hiring. Regardless, the labor market is expected to remain stable, with no significant upheavals foreseen in the near future.

On the wage front, the Monetary Authority of Singapore forecasts a moderation in nominal wage growth compared to the previous year. While ongoing commitments to salary increases and government initiatives such as the Progressive Wage Model will offer some cushioning, a prolonged economic downturn might lead to decreased hiring and possible layoffs.