SINGAPORE: Singaporean employers show increased optimism about hiring prospects in the final quarter of 2024.

However, the overall sentiment remains weaker compared to the same period in 2023, according to the latest data from the ManpowerGroup Employment Outlook Survey.

The survey, released on Sept 10, revealed that Singapore’s net employment outlook—calculated by subtracting the percentage of employers expecting to reduce staff from those planning to hire—rose to 29% for the fourth quarter of 2024.

This marks a notable nine percentage point improvement from the previous quarter. However, it is still seven percentage points lower than the outlook reported for the same period last year.

The survey, which polled 525 employers across various industries, indicated that 46% expect to increase their headcounts in Q4, while 17% anticipate reductions. About 36% of respondents expect no changes to their staffing levels, and 1% remain unsure about their hiring plans.

Hiring demand is anticipated to be strongest in certain sectors, with the finance and real estate industries leading the way—64% of employers in these sectors plan to add more staff.

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Transport, logistics, and automotive companies also expect a positive hiring trend, with 44% of employers in these industries indicating plans to expand their workforce. The industrial and materials sectors round out the top three, with a 39% hiring outlook.

On the other hand, the energy and utilities sector stands out with a net negative hiring outlook of -30%. This indicates that more employers in this sector plan to reduce headcounts rather than hire additional staff.

Hiring intentions also vary significantly depending on the size of the company. Medium-sized businesses with 250 to 999 employees appear the most optimistic, with 58% planning to increase their workforce.

Large companies with between 1,000 and 4,999 employees also show a strong hiring outlook, with 50% anticipating expansion.

In contrast, smaller companies, particularly those with 10 to 49 employees, are the least likely to hire in Q4, with only 4% indicating plans to do so. Similarly, only 8% of companies with over 5,000 employees expect to expand their workforce in the upcoming quarter.

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The survey also highlighted challenges faced by Singaporean employers in meeting their environmental, social, and governance (ESG) goals.

A significant 92% of employers reported that they do not have the talent necessary to achieve their ESG objectives, underlining the growing demand for skilled workers in sustainability roles.

In terms of inclusion, nearly half (47%) of the companies surveyed have formal LGBTQIA+ inclusion strategies in place, with another 25% currently in the process of developing such strategies.

As Singapore’s job market faces positive momentum and ongoing challenges, businesses across sectors and sizes must adapt their strategies to meet economic demands and broader societal expectations.