The latest data from the Ministry of Manpower indicates that Singapore’s labour market stayed competitive in 2025, with a higher number of job vacancies compared to the previous year. Labour demand is gradually shifting towards growth areas, as firms create more new positions to support business expansion.
For foreign entrepreneurs and SMEs considering Singapore company formation, these patterns highlight where opportunities exist for building teams and the growing importance of skills-based recruitment when setting up operations locally.
Labour Demand Driven by Business Expansion
Newly created roles made up 49.3% of vacancies in 2025 (an increase from 45.7% in 2024). This growth was heavily concentrated in key sectors, with above-average shares in:
- Information & Communications (74.2%)
- Professional Services (58.2%)
- Financial & Insurance Services (54.0%)
Technological advancements continue to drive demand for skilled professionals. Specifically, there is a robust need for digital and advanced manufacturing roles, including:
- Software, web, multimedia, and game developers
- Data scientists and systems analysts
- AI and machine-learning engineers
- Infrastructure and engineering professionals
The Shift to Skills-Based Hiring
Employers are increasingly placing greater emphasis on practical skills and competencies rather than traditional academic qualifications. In fact, qualifications were not the primary hiring criterion in 79.6% of vacancies.
This shift has allowed businesses to hire faster, access a wider talent pool, and improve overall employee performance. When looking at experience levels, the vacancies span a wide range:
- 31.5% required no prior experience.
- 20.2% needed at least one year of experience.
- 51.1% targeted mid-level candidates with 2 to 5 years of relevant exposure.
While the proportion of vacancies remaining unfilled for six months or longer fell to 17.1% overall, it edged up slightly for PMET (Professionals, Managers, Executives, and Technicians) roles to 16.0%. Specialised positions in software development and data science remain among the harder-to-fill roles due to their highly specific technical requirements.
Remote Work Trends and Local Talent Preference
The modern workplace continues to evolve. Remote-capable jobs rose to 22.7% of all vacancies in 2025.
At the same time, employer intent to recruit from overseas declined to 16.5%. This indicates a strong preference for hiring local talent whenever suitable candidates are available. While firms are expected to maintain a cautious approach to hiring in the near term, early 2026 indicators suggest a modest improvement in hiring sentiment.
Strategic Workforce Planning for SMEs
For SMEs in Singapore, these labour market signals reinforce the value of proactive workforce planning. Professional accounting and bookkeeping services can assist with accurate payroll forecasting and compliance as businesses scale their teams in line with evolving hiring trends.
As Singapore’s economy adapts to structural changes and technological shifts, staying informed about vacancy patterns helps businesses align their growth strategies with available talent. Entrepreneurs exploring Singapore company formation or those already operating locally can greatly benefit from expert guidance to integrate these insights into their HR and compliance frameworks.
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