Singapore’s hiring climate is showing distinct signs of cooling, with overall job postings falling nearly 17% year-on-year, according to the latest data from recruitment platform Indeed.

Despite this slowdown, a tight labour market and specific sectoral trends tell a more nuanced story – one that business and HR leaders will want to follow closely.

The numbers behind the slowdown

In April alone, job postings dipped by nearly 3% compared to the previous month. This marks the fourth consecutive monthly decline and places current vacancy levels at their lowest since May 2021. It’s a clear sign that the post-pandemic hiring boom hias lost steam, as companies recalibrate their workforce needs in response to shifting economic conditions.

Among the hardest hit sectors are cleaning and sanitation, where job ads plunged by a striking 56% over the past three months – the steepest fall across all industries. Childcare and pharmacy roles aren’t far behind, with postings dropping by nearly 40% during the same period. These figures suggest that certain frontline and essential service sectors, which were once scrambling for manpower, are now cutting back as demand normalises or budget constraints tighten.

A tight labour market with a twist

Despite the broad-based decline, Singapore’s labour market is far from slack. The unemployment rate held steady at a low 2.1% in the first quarter of 2025, underscoring the continued mismatch between labour supply and demand. In other words, while hiring activity may be cooling, the hunt for talent hasn’t gone cold – employers are still struggling to fill roles, just more selectively.

This apparent contradiction can be explained by timing. Labour market trends often lag behind broader economic shifts, and economists caution that the full effects of global uncertainties may not be immediately visible in employment data. As one economist put it, “What we’re seeing now is the ripple, not the wave.” Business leaders would do well to brace for delayed impacts while keeping an eye on long-term workforce planning.

Read: The secret of Singapore's top employers

Bright spots amid the gloom

Not all sectors are in retreat. In fact, some are bucking the trend altogether. The ageing population is fuelling a strong surge in demand for personal care aides and home health workers. Job openings in these roles have jumped nearly 30%, reflecting the country’s demographic shift and the growing emphasis on eldercare services.

Technology hiring, which took a hit in 2023 amid global layoffs and budget cuts, is also showing early signs of revival. Job postings for data analysts climbed by 9.5% last month, a modest but notable gain. This could indicate that some companies are ready to get back to investing in digital capabilities, especially as data-driven decision-making becomes ever more critical in uncertain times.

Read: Singapore reinforces fair hiring practices with Employment Pass applications

What HR leaders should watch

For HR and talent acquisition leaders, this two-speed job market presents both challenges and opportunities. On one hand, sectors with shrinking demand may offer a larger pool of candidates – potentially an opening to tap into adjacent skills or retrain workers for roles in growth areas like healthcare and data.

On the other hand, companies in high-demand fields still face stiff competition for skilled workers. Simply put, it’s no longer about casting the net wide, but about fishing in the right pond with the right bait. Employer branding, flexible work arrangements, and clear career progression paths could be the differentiators that tip the scales in your favour.

A market in flux

Singapore’s current labour landscape is a tale of two markets: one pulling back in the face of economic headwinds, the other pushing ahead due to demographic shifts and the digital imperative. It’s not quite feast or famine – but more of a recalibration, where success hinges on agility and foresight.

For business and HR leaders, the message is clear: keep your finger on the pulse, but don’t take your eye off the horizon. In a market that’s cooling on the surface but bubbling beneath, those who adapt fastest will be best placed to weather the change – and perhaps even get ahead of it.