SINGAPORE: Hiring sentiment here has fallen to its lowest level since 2021, but employers are willing to pay more for employees with artificial intelligence (AI) and critical thinking skills.
Two-thirds of the 599 companies in Singapore surveyed by ManpowerGroup said they would pay a salary premium for AI literacy.
This finding was most apparent in the public sector, health and social services, as well as professional, scientific and technical services.
Bosses also indicated willingness to pay more for AI model and application development skills (64%) and traditional information technology and data skills (56%), the recruitment firm’s quarterly employment outlook survey revealed yesterday.
Soft skills like critical thinking, problem-solving, communication, collaboration, leadership and social influence are also being rewarded with higher pay by employers.
When asked about their hiring plans for the next quarter starting July, 41% of employers said they expect to maintain current staffing levels, while 22% anticipate a decrease in manpower.
Among those expecting to maintain the status quo, 27% want to see how the economy changes before making hiring decisions.
ManpowerGroup Singapore’s country manager Linda Teo noted that many employers choose to hold steady on headcount until there is greater clarity on geopolitical conditions.
“This does not mean employers are standing still. Instead, hiring decisions are becoming more selective and deliberate,” she said, adding that talent investments are increasingly directed towards “skills that deliver the greatest impact”.
“The continued willingness to pay a premium for AI and critical thinking capabilities reflects a skills-based approach to hiring, as organisations focus on strengthening productivity, efficiency and long-term competitiveness even as overall hiring sentiment softens.”
Two other recent reports also indicated that bosses are willing to pay more for AI skills.
Global human resources firm Deel said in its 2025 state of global hiring report that nearly half of employers polled are offering 25% or higher salary premiums for AI specialist roles, and 14.8% are willing to pay 50% or more above industry norms.
Singapore companies stood out as the top employers of AI trainers compared with larger markets in the Asia-Pacific region.
A report on 2025 tech salaries data released by career platform NodeFlair in May showed that engineers with AI skills enjoyed higher salaries, with those in junior roles receiving the highest pay bump of up to 25%.
This means that a junior software engineer earning a monthly salary of S$4,800 would have received a pay bump to S$6,000 with AI skills.
In another survey conducted from November 2025 to January 2026, professional services firm Aon found that Singapore companies are pushing ahead on AI, with 42% having fully deployed it and another 38% piloting it.
The study also found that 88% of those surveyed agree AI will create new opportunities and require new skills in their field.
Over the next three years, adaptability and change management will be considered the most critical skills for organisational success here.
Rahul Chawla, Aon’s partner and head of talent solutions in South-East Asia, said Singapore is ahead of many nations in AI upskilling as it is one of the most successful South-East Asian economies and home to “organisations at the forefront of growth”.
But while Singapore stands out in terms of AI adoption, gaps remain, according to a recent poll by consulting firm Deloitte of more than 22,500 Gen Zs and millennials worldwide, including 302 here.
Nearly nine in 10 of the respondents in Singapore use AI in their daily work, compared with a global average of 74% for both generations.
While most of them said AI positively impacts their work life, less than a third said the AI tools provided by their bosses may not be sufficient.
Forty per cent of Gen Zs and 47% of millennials in Singapore say they will continue to seek new AI training opportunities as the technology evolves.
They are also using AI to identify learning and development opportunities, cope with work-related stress and seek career advice.
At the same time, new research found that more employees fear becoming obsolete as the pace of AI adoption and employee readiness widens.
The latest 2026 Employee Experience Global Market Study by WTW, a global insurance and HR consulting firm, showed that while AI adoption is accelerating rapidly, many firms are not yet equipped to support their workforce through the transition.
“Employees aren’t just watching AI reshape work, they’re feeling it, living it and questioning how they will fit in the future,” said WTW’s global employee experience leader Jill Havely.
Organisations that intentionally design an employee experience to address this anxiety can replace uncertainty with confidence and help people see a future where they still matter.” — The Straits Times/ANN
