Terry KS A new survey shows Singapore employers remain cautious toward mid-career and long-unemployed candidates despite a low unemployment rate, with skills mismatch and salary expectations posing major challenges. Upskilling, digital readiness, and recruitment agencies play a growing role in bridging hiring gaps amid rapid digital transformation.
SINGAPORE, 7 JANUARY 2026 – Despite Singapore maintaining a low unemployment rate of about 2.1 percent, employers continue to take a cautious approach when assessing mid-career jobseekers, candidates with career gaps, and individuals unemployed for more than three months, according to a new study by Reeracoen and Rakuten Insight.
The Singapore Hiring Manager Survey Report 2025–2026 is based on insights from 375 hiring managers and HR professionals across multiple industries. The findings highlight how organisations are navigating talent shortages, evolving skill requirements, and the growing challenge of reintegrating jobseekers into the workforce amid rapid digital transformation.
Hiring confidence remains subdued, with only 23.2 percent of respondents expressing strong confidence in securing qualified local talent. High salary expectations were identified as the top challenge by 80.3 percent of employers, followed by skills mismatches at 65.1 percent. More than half cited a shortage of experienced candidates, while 40.5 percent pointed to weak interest from jobseekers.
Career gaps continue to influence hiring decisions, with 63 percent of employers expressing hesitation toward candidates unemployed for more than three months. At the same time, upskilling has emerged as a critical factor, as 76.6 percent of hiring managers consider recent training, certifications, or skills development essential in candidate evaluation. Digital and AI capabilities ranked highest among in-demand skills, followed by project management, data literacy, technical certifications, and communication skills.
The survey also underscored the continued importance of recruitment agencies, with over 76 percent of employers relying on them to shortlist candidates. Agencies are seen as instrumental in reducing skills mismatches and shortening hiring timelines, especially for roles that are more difficult to fill.
Industry leaders noted a broader shift across Asia toward skills-based and human-centric hiring. Employers are increasingly encouraged to look beyond job history and consider motivation, adaptability, and learning effort. As Singapore’s digital transformation accelerates, the gap between employer expectations and jobseeker readiness continues to widen, creating a need for stronger re-entry pathways and fairer evaluation frameworks.
The report concludes that in Singapore’s fast-paced hiring environment, candidates who demonstrate preparedness through recent learning, transparency, and proactive engagement are better positioned to overcome non-traditional career paths or employment gaps. It also highlights opportunities for employers, recruitment agencies, and policymakers to collaborate in building a more inclusive and resilient workforce.