SINGAPORE: Singapore’s job market has experienced an 11% drop in hiring over the past year, reflecting the ongoing shifts in workforce demand due to digitalisation, automation, and evolving industry trends, according to a recent report by employment platform foundit.
The retail industry saw a 9% decline in hiring, largely attributed to the increasing dominance of e-commerce. As more consumers turn to online shopping, traditional brick-and-mortar retailers are facing reduced demand for in-store employees.
Meanwhile, the hospitality sector recorded an even steeper 15% drop in recruitment, pointing to a weakened workforce demand. The report suggests that this downturn may be linked to limited promotional efforts, stricter visa regulations, and the rise of automation, which has led to roles being outsourced to artificial intelligence (AI) and other technological solutions.
One of the most significant findings of the report is a 45% decline in technology-related roles, underscoring the challenges faced by Singapore’s once-thriving tech industry. The shift may be driven by changing business priorities, cost-cutting measures, and increased reliance on AI and cloud-based solutions, reducing the need for certain tech positions.
The marketing and communications industry also faced a 9% decline in hiring, largely due to budget cuts in traditional marketing roles. As businesses allocate more resources to digital and data-driven marketing, demand for conventional marketing professionals has dwindled.
Similarly, HR and administration saw a 12% drop in hiring, as companies continue to outsource administrative tasks and automate routine processes to improve efficiency and reduce costs.
V Suresh, CEO of foundit, highlighted the broader trends shaping employment across the region.
“The evolving employment landscape across Southeast Asia is shaped by key factors such as digital adoption, workplace dynamics, and shifting compensation strategies,” he said.
He added, “In Singapore, technology and efficiency are redefining industry roles. Overall, businesses that strike a balance between technology-driven strategies and employee well-being will be best positioned to navigate these shifts and sustain long-term growth.”