The Singapore National Employers Federation’s Survey on Wage and Employment Outlook 2026/2027 found that employers remain cautious about hiring and wage increases despite a modest improvement in their business outlook. The survey covered more than 300 companies employing nearly 160,000 workers across 20 industries. For 2027, 51% of employers plan wage moderation or a wage freeze, 54% plan to maintain headcount, while 6% plan to reduce it.
2027 Workforce Plans
Manpower Cost Is the Biggest Pressure
Rising manpower costs increased from 79% in 2025 to 83% in 2026/2027
| HR Indicator | 2025 | 2026 / 2027 |
|---|---|---|
| Rising manpower costs as challenge | 79% | 83% |
| Rising upskilling/reskilling costs | 23% | 30% |
| PMET attraction/retention difficulties | 47% | 41% |
| Concern over local high-skilled talent shortage | 42% | 35% |
| Attracting suitable talent remains top HR priority | — | 59% |
| AI as 2027 priority | 39% | 48% |
The Interesting Contradiction
This is the central message for 2027. Companies may not want more people. They still need the right people.
Hiring Is Becoming More Selective
The market is moving away from broad headcount expansion. Recruitment decisions will increasingly need stronger business justification.
Salary Increases May Become More Targeted
With 51% of employers planning wage moderation or freezes, salary increases may become more selective. Instead of broad-based increments, employers may concentrate compensation on high-value roles and individuals.
What May Happen Next
A likely direction is greater differentiation between critical and non-critical roles.
Employers may:
- Approve fewer blanket headcount increases.
- Continue hiring for specialised or revenue-critical positions.
- Put greater emphasis on productivity and AI.
- Allocate salary increases selectively rather than broadly.
- Consider reskilling existing employees where external hiring is expensive.
The survey also found that 48% of employers identified AI adoption or enhancement as a 2027 priority, up from 39% for 2026.
What Employers Should Do Before Finalising 2027 Budgets
Before finalising salary and manpower plans:
2027 recruitment will be less about volume and more about precision.When companies have fewer approved positions but still need strong talent, recruitment becomes about identifying the small number of candidates who genuinely justify the hiring decision
Need Support With Your Hiring Plans?
As hiring becomes more selective, identifying the right talent for business-critical roles is increasingly important.
Kanry Search supports employers across permanent recruitment, executive search, temporary & contract staffing, and workforce solutions.
Speak with us about your hiring requirements now!
Sources
Singapore National Employers Federation (SNEF) — Survey on Wage and Employment Outlook 2026/2027
