Singapore employers willing to pay more for AI skills despite cautious hiring
Two-thirds of Singapore employers say they will pay premium salaries for workers with AI literacy skills, even as overall hiring sentiment weakens across the country, according to a ManpowerGroup report released this month.
The findings reveal a sharp divide in how companies allocate talent budgets. While 66% of employers will pay more for AI tool proficiency and 64% will pay more for AI model and app development skills, only 49% offer premium pay for human resources expertise.
The Net Employment Outlook for the third quarter of 2026 dropped to 13%, down from previous periods. This means 35% of employers plan to hire, 22% expect to cut staff, and 41% will maintain current headcount levels.
Selective hiring replaces broad recruitment
The cautious stance reflects uncertainty over geopolitical conditions, including proposed US tariffs on Singapore goods. Yet companies are not freezing hiring entirely - they are becoming more deliberate about where they invest in talent.
Linda Teo, country manager of ManpowerGroup Singapore, said organisations are concentrating investment on skills that directly support business transformation. "Hiring decisions are becoming more selective and deliberate, with investment increasingly directed toward skills that deliver the greatest impact," Teo said.
Employers emphasise AI capabilities alongside traditional strengths. Problem-solving, collaboration, and leadership remain valued, but companies now expect these to work alongside digital proficiency.
What this means for HR professionals
The shift signals that HR teams must rethink how they source, evaluate, and compensate talent. A skills-based hiring approach - focusing on what candidates can do rather than credentials - is becoming standard practice among cautious employers.
HR leaders looking to build capability in this area may benefit from understanding AI for Human Resources practices. For HR executives shaping workforce strategy, the AI Learning Path for CHROs addresses how to integrate AI literacy into talent management and organisational capability building.
The data suggests that companies treating AI skills as a strategic priority will maintain competitive advantage even in a softer hiring environment.
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