Nearly 60% of employers considering hiring and pay freeze next year

SINGAPORE: Nearly six in ten employers are preparing to freeze hiring and pay raises next year amid mounting concerns over economic uncertainty, according to a new survey by the Singapore National Employers Federation (SNEF).

The survey, conducted between June and August this year and involving about 240 employers, found that 70% of respondents reported an uncertain business outlook in 2024, a sharp increase of 14 percentage points from last year. The gloomier sentiment appears to be shaping employers’ manpower decisions for the year ahead.

According to the findings, 58% of employers plan to freeze hiring next year. Smaller businesses are even more cautious, with 63% indicating they are likely to halt recruitment. Despite the slowdown in hiring intentions, the proportion of employers planning to reduce their workforce remains similar to last year, although larger companies are more inclined to carry out staff cuts.

Wage decisions are also tightening. Almost half of surveyed employers say they intend to adjust or freeze salaries, an increase of 10 percentage points compared with last year. Even so, most employers indicate they will continue to raise wages for low-wage workers.

Rising labour costs emerged as the top human resource concern for employers in the coming year. Other key challenges include attracting and retaining professionals, managers, executives and technicians, as well as a shortage of highly skilled local talent.

To manage these challenges, employers say they are looking at upgrading workers’ skills and equipping employees with additional competencies. Flexible work arrangements are also being considered, though interest in such arrangements has dropped significantly. Only 30% of employers are prepared to offer flexible work options next year, down from nearly half in the previous survey.