While Large Companies in Singapore Prepare for Layoffs, Small Businesses Are Increasing Employment

While the employment environment in Singapore generally maintains its positive trend, new signs are emerging that the labor market is starting to slow down. According to the latest third-quarter report published by ManpowerGroup Singapore, the Net Employment Outlook (NEO) index has dropped to just %13. This level stands out as the lowest rate recorded since 2022. The NEO index represents the difference between the percentage of companies anticipating hiring and the percentage of those planning to lay off staff. These data indicate that the effects of global economic uncertainties have started to reflect on the country's labor market.

Of course, these statistics are merely general averages, and the situation individuals will experience may vary depending on the sector they work in. However, the size of the company and the sub-sector it operates in are also among the main factors directly affecting labor demands. For instance, the manufacturing sector is far ahead in the ranking of employment expectations. The significant increase in demand for local electronics and semiconductor manufacturing driven by artificial intelligence technologies is shown as the main reason for this vitality in the sector. In contrast, many other sectors operating in the country's general economy have experienced sharp declines in employment expectations. In particular, the finance and insurance sectors have been heavily affected by this decline, shifting towards a negative picture. Having experienced a 13-point loss in the previous period, this sector indicates that it may become difficult to find the most profitable and highly sought-after job opportunities in Singapore this quarter. Furthermore, the fact that most institutions operating in these sectors employ thousands of workers paves the way for even small proportional contractions to affect thousands of people. On the other hand, the information technology (IT) sector is following a relatively more stable and strong positive course. However, despite this stability, situations such as the recent layoffs announced by Shopee, one of the global giants in the sector, prove that the IT field is not entirely immune to the wave of downsizing. When looking at a detailed analysis based on company sizes, a quite striking and concerning picture emerges. The NEO value of giant companies with 5.000 and more employees has dropped by exactly 29 points, regressing to a minus %26 level. This figure clearly reveals that these large-scale employers aim to reduce their workforce rather than planning to hire new staff. Considering that the global average is a positive %24, the situation of large-scale organizations in Singapore is evaluated as an alarming level. In fact, all businesses employing 50 and more employees are aware of the negative trends in employment and accordingly pursue a cautious policy. However, none of the companies in this medium-sized group have dropped their values fully into the negative zone. Despite this, hiring at the lower end of the labor market, namely on the small business side, is practically experiencing a boom. The net employment outlook of small businesses with fewer than 10 employees has reached a high rate of %42, while for companies with 10 to 50 employees, this rate stands at %34. Both small-scale business groups have recorded strong and positive momentums for the third quarter, exhibiting a complete stance against the negative attitude of large firms. This situation proves that despite the slowdown in the overall economy, the entrepreneurial spirit and local small businesses remain strong. Experts believe that this deep divide emerging based on company sizes is a clear reflection of the structural transformation in the Singapore economy. Ultimately, while markets continue to differentiate among these waves, job seekers may need to shape their strategies according to these new dynamics.