Hiring in Singapore: Guide and Trends in 2025

Sustained demand for AI, sustainability and contracting in Singapore

Concerns around costs, productivity and efficiency weighed heavily on Singapore’s labour market in 2024, pushing businesses towards new hiring and workforce management strategies.

“Operational costs were persistently high in the past year. As a result, some companies moved roles – even strategic ones – abroad to countries such as Malaysia and Thailand,” states Monty Sujanani, Country Manager at Robert Walters Singapore. “Hazy economic conditions made for more cautious attitudes in hiring, and businesses were often unable to commit to full-time hires. This has led to a growth in contract positions instead, particularly project-based hires.”

Across industries, companies invested in artificial intelligence (AI) to boost efficiency and productivity. However, Monty points out that there is a shortage of talent in the space, so businesses have had to invest in upskilling and reskilling their existing workforce.

Read on to find out more about Monty’s expectations for Singapore’s labour market in 2025.

Tech, sustainability and flexible hiring prevails

Over the past year, demand has been soaring for professionals with expertise in technologies that are key for digital transformation, like AI, Internet of Things (IoT) and blockchain. Similarly, there has been a growing focus on sustainable supply chain practices. These will continue to feature prominently in the hiring market in 2025.

Businesses are still maintaining a cautious stance when it comes to headcount management. Therefore, the market will continue to lean on contract hiring as it grants them more flexibility to meet organisational and project needs as they arise.

Most in-demand skills for 2025

AI has gained significant ground across businesses in Singapore, driving up demand for expertise in this domain – and not solely for skills that are technical in nature. As Monty puts it, “More businesses will look to hire individuals who have knowledge on building use cases like automating tasks, improving efficiency and uncovering new opportunities.”

Data analytics skillsets will also be another feature of the hiring market in the year ahead. Across functions, businesses will seek talent who can use data to make informed, executive decisions.

Soft skills like critical thinking and problem solving will also be highly sought after. As businesses look to increase productivity, they appreciate candidates who can analyse complex situations, identify issues and propose effective solutions.

Advice on talent attraction and retention

The competition for talent gets more intense each year as candidate motivations evolve and companies find new ways to gain a competitive advantage.

More companies have deployed AI-powered tools, social media sourcing, performance analytics and skill assessments to make the hiring process more efficient and precise. Furthermore, there’s also been more requests for market intelligence services, which give hiring teams more data and insights about the labour market and its trends.

In addition, candidates now have their eye on a wider range of factors, such as work-life balance and having opportunities to learn and grow. Many professionals are also looking for meaningful work which aligns with their values, particularly as they hope to create a positive impact through their work.

To attract and retain top talent, employers need to adopt a strategic approach that addresses these challenges and dynamics.

Compensation and benefits remain a key piece of the puzzle, so companies should ensure these are flexible and competitive against market standards. Remote and hybrid work models are also highly recommended, as candidates still see flexible work arrangements as a huge plus point. A positive, engaging work environment is also key for promoting employee well-being. Companies are also advised to invest in employee development, laying out clear career development pathways and providing platforms to learn.

Rise in salaries

In 2025, job movers can look forward to salary increments between 12 – 15%, though those in high demand areas like AI and data may see salaries go up by 20%.

Increments for those staying in their current organisation are expected to fall between 2 – 5%, in line with inflation.

Find out more

Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in Singapore.