3 in 5 employers plan to freeze hiring in 2026: SNEF survey

Amid a more volatile business environment, close to three in five employers (58 per cent) plan to freeze hiring in 2026 — up from 50 per cent in 2025 — a survey by the Singapore National Employers Federation (SNEF) showed.

The survey, conducted between June 25 and Aug 15, received responses from around 240 employers and found that over 70 per cent of them expect greater uncertainty in the coming year — a spike from 58 per cent in the previous survey.

The proportion of employers planning to reduce headcount is similar to that in 2024, with large employers being more likely to do so.

Additionally, close to half of the respondents (48 per cent) plan to implement wage moderation or wage freezes, up from 38 per cent in 2024.

Firms planning to raise salaries will be giving lower increments than previous years, according to the survey.

On the bright side, 96 per cent of respondents who employ lower wage workers have planned built-in wage increases for them next year.

Employers, especially small and medium-sized firms, plan to be more cautious in the coming months.

Nearly 40 per cent of all employers plan to give higher increments to lower wage workers than to other employees, while 33 per cent planning similar increments for all employees.

The survey also found that rising manpower costs remain the top challenge for employers.

Attracting and retaining professionals, managers, executives and technicians and a shortage of high-skilled local talent were other challenges faced by employers.

Ways to alleviate such challenges include upskilling or reskilling employees to meet evolving business needs and providing more flexible work arrangement options.

"Employers are navigating 2026 cautiously, in view of rising costs of doing business and uncertainties in the overall global economy," said Hao Shuo, CEO of SNEF.

He encouraged employers to align their wage decisions with the National Wages Council Guidelines so that wage adjustments are "fair and sustainable".

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dana.leong@asiaone.com