Big-picture wise, according to a recent labour market report by the Ministry of Manpower, in 2024, the number of employed residents (Singapore citizens and permanent residents) grew by 8,800 in 2024, compared to a decline of 4,600 in 2023.
The report elaborated that the growth was mainly in higher-skilled sectors such as the below:
- Financial & Insurance Services (an increase of 5,300 jobs)
- Health & Social Work (an increase of 5,200 jobs)
- Professional Services (an increase of 5,000 jobs)
- Information & Communications (an increase of 4,200 jobs)
Which sectors are hiring locals in 2025?
One key finding from the recent quarter was that the number of job vacancies rebounded in Dec 2024 after a decline in Sept 2024. 70% of the vacancies for jobs are typically filled by locals in sectors such as Professional Services, Information and Communications, Financial and Insurance Services and Health and Social Services.
We spoke to Cindy Lee, Adecco Singapore’s country head, who shared her thoughts on why these industries are hiring locals as much. She said this preference stems from the necessity for in-depth knowledge of local markets, consumer behaviors, and regulatory landscapes, which are critical for success in these industries.
“Policy changes such as the Comprehensive Framework for Fair and Progressive Employment Practices (COMPASS) are driving the push for greater local hiring.”
“This framework not only promotes employment fairness but also supports the hiring of citizens and permanent residents, thereby fostering a more inclusive workforce,” she added.
With regards to whether this trajectory will continue deep into 2025, Cindy shared that as companies in Singapore continue to adopt technology-driven initiatives, skillsets in AI, cybersecurity, and cloud computing will be paramount.
Locals must focus on cultivating these skills to remain competitive in the evolving job market.
The appeal of high wages in these sectors, coupled with considerable government support for ongoing education and skills enhancement through initiatives like the SkillsFuture Career Transition Programs (SCTPs) and Company Capabilities Programme (CCPs), further bolsters this shift toward local hiring.
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How about re-entry into employment for retrenched workers?
Amongst the various industries tracked by MOM’s report, one finding was how the Information and Communications (ICT) industry saw an increase in re-entry rate. This means those who lost their jobs in the industry quickly managed to find a role within the same industry.
At the same time, a majority of retrenched workers tended to join a different industry, which reflects the importance of transferable skills.
Cindy shared this was likely to be because ICT remains an industry with high demand and a significant shortage of workers.
“Skilled workers might find it easier to head back, as the sector is rather volatile yet is in demand, which supports overall business digital transformation and security,” she added.
For those who tend to join a different industry, Cindy observed that companies in technology, banking and healthcare are hiring people with data analytics and automation skills as these help the business to grow, transform and adapt.
David Blasco, the Country Director at Randstad Singapore, also shared: “Despite ongoing restructuring, companies in the Information and Communications sector continue to demand expertise in areas such as data governance, cloud infrastructure, and cybersecurity.”
“Core skills like programming and data analysis are highly transferable across industries, enhancing workers’ re-employment opportunities.”
Service-oriented industries like marketing, financial services, and professional services also tend to have higher re-entry rates for retrenched workers, largely due to the versatility of skills in these sectors, David believes.
Strategic planning, data analysis, and client relationship management are highly adaptable competencies that translate well to emerging roles in fintech, consulting, and other digital growth areas.
The transferability of these skills allow professionals to pivot more easily, whether within their original industry, or into adjacent sectors experiencing expansion.
What’s the projected hiring outlook for 2025, and what skillsets are employers looking for?
Sectors such as artificial intelligence (AI), cybersecurity, finance, and advanced manufacturing are poised for significant growth, Cindy believes. She anticipates this growth will drive substantial hiring.
As such, in this evolving labour market, jobseekers should concentrate on developing digital skills, automation expertise, and strong problem-solving capabilities.
“Candidates who bring specialised knowledge in cybersecurity, cloud computing, environmental, social, and governance (ESG) principles, and business analytics will particularly stand out, providing them with a competitive edge,” she shared.
David added: “Our dipstick Job Market Outlook survey conducted in Quarter 4 last year found that 49% of employers in Singapore plan to increase headcount in 2025, and 45% expect to see more hiring activities in sales and business development.”
“This is followed by 23% in technology and 13% in digital transformation, AI, engineering, and marketing.”
He added that when hiring for sales and business development positions, employers favour talent with a proven track record and customer profiles aligned with the company’s growth strategy.
How important is AI and digital skills for Singapore workers?
There is a growing demand for programming skills, such as Advanced Excel, VBA, or Python, to analyse and use data to enhance customer engagement and experience.
David said: “Demand for talent in support functions like technology and marketing is shifting as companies face tighter operating budgets alongside costlier expenditures.”
“Employers increasingly prefer candidates with strong commercial acumen and budgeting expertise who demonstrate effective cost-saving measures and deliver clear return-on-investment.”
“Business partnering and communication skills remain valued, as employers expect support teams to proactively clear roadblocks, optimise resources, and open doors to new sales opportunities.”
While technical expertise remains critical for all roles, employers value certifications that showcase a commitment to continuous learning.
In addition, training in emerging technologies such as data analytics, programming, and AI is becoming essential as companies accelerate their digital transformation efforts.
The rapid pace of technological innovation means that foundational AI digital skills are becoming essential across all industries.
This shift highlights the importance of not just “what to learn,” but “how to learn.”
With information more accessible than ever, tools like ChatGPT have become integral in our daily operations, making proficiency in areas such as prompt engineering valuable for maximising these technologies. Cindy believes that this phenomenon can be likened to the widespread adoption of email in the 1990s, which quickly became a cornerstone of workplace communication.
“This matches with the thinking behind Workforce Singapore’s Job Transformation Maps that illustrate how various industries are adapting to these changes,” she added.
Despite differing impacts across sectors, the unifying theme remains: AI, automation, and digitalisation are universally impacting all industries and picking up such skills will be critical.
Cindy concluded: “The outlook for the 2025 labour market is filled with promise for those willing to adapt and reskill.”
“Employers and jobseekers must approach this transformative era with a proactive mindset, embracing lifelong learning to ensure success in their respective areas!”
This article was done in collaboration with Randstad and Adecco.
