Competitive job market ahead for both employers and employees in 2025 

Following a slow start to 2024, hiring picked up in the tech and transformation sector, with businesses battling tough economic conditions and a competitive hiring market to secure the talent they need.

“Companies really felt the heat this past year as they fought to attract and retain their talent. Not only did they need skills that are more niche in nature, rising costs of living drove up operational costs and candidates’ salary expectations,” recounts Sachet Sethi, Senior Manager at Robert Walters Singapore.

Geopolitical shifts like trade conflicts and regulatory changes also affected supply chains, influencing tech companies to diversify their operations.

In hiring, companies maintained their efforts in diversity and inclusion (D&I). Skills in artificial intelligence (AI) and other emerging technologies were also high on the priority list.

Read on to find out more about Sachet’s expectations of the labour market and hiring trends for Singapore’s Tech & Transformation professionals in 2025.

Balancing costs and talent needs

For 2025, Sachet believes that the focus on D&I will continue to define talent attraction and workforce management across different IT functions. Technologies like AI will also remain a focus point, contributing significantly to hiring demand.

Cost pressures will also be likely to stay, and companies will work to come up with new strategies to attract, retain and manage talent. On this, Sachet remarks, “The main aim would be to hire the best possible talent, all while keeping to budgets and maintaining profit and growth.”

Hiring to get ahead of competitors through data

In 2025, companies will steer hiring efforts towards bringing on talent that can help them leverage data well to improve processes and enhance customer experience. Overall, AI and ML skillsets will be in high demand, specifically with skilled engineers that can work on complex data and development work. Soft skills that companies want to see in candidates are stakeholder management and openness around learning new tech stacks.

The most popular roles on the market will be AI engineers, ML engineers, cybersecurity specialists, and technical and business analysts specialising in data.

Cautious attitudes all around

Unnerved by market volatilities, candidates have approached career moves with a greater degree of caution. Besides organisational and job stability, motivations have stayed largely the same, with candidates seeking flexibility, career development opportunities, mental and physical wellbeing, and a supportive work environment.

For both employers and candidates, Sachet stresses the value of upskilling and career development opportunities.

When employees have access to avenues for learning and growth, companies benefit too, because they build a workforce that is engaged, more loyal, and up to date with the latest industry trends.

With the Singapore government’s Flexible Work Arrangements guidelines coming into play, companies have the opportunity to review work arrangements and practices, striking a right balance among flexibility, productivity and employee wellbeing. As candidates are keen on hybrid and flexible work arrangements, companies could also consider offering these work models to attract talent.

Another good way to keep employees engaged is to provide rewards and recognitions where due, such as in the form of performance-based incentives or promotions for good performers.

“The market can be challenging for everyone these days and both employers and employees will benefit immensely from personal branding. For businesses, this means highlighting your value propositions as an employers, while for employees, this could look like participating regularly in industry networking events,” advises Sachet.

Salaries remain stable

In 2025, salaries are projected to remain stable, with increments falling between the usual rates of 12 – 15% for job movers. However, higher increments are anticipated for AI and ML positions, with demand driving salaries up by 20%.

Find out more

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