Originally published by Reeracoen Singapore on January 7th, 2026

Despite Singapore’s low unemployment rate of around 2.1 percent, a new study by Reeracoen and Rakuten Insight shows that employers remain cautious when evaluating mid-career candidates, applicants with career gaps, and those who have been unemployed for more than three months.

The Singapore Hiring Manager Survey Report 2025–2026 draws on responses from 375 hiring managers across multiple industries, including both final decision-makers and HR professionals involved in candidate evaluations. Their insights provide a clear view of how companies are coping with talent shortages, changing skill demands, and the challenges of helping jobseekers return to the workforce as digital transformation accelerates.

Hiring confidence remains low, with only 23.2 percent of hiring managers saying they feel very confident about finding qualified local talent. The majority cite high salary expectations (80.3 percent) as the top challenge, followed by skills mismatch (65.1 percent). Another 56.3 percent say there is a lack of experienced candidates, while 40.5 percent report limited interest from jobseekers.

Career gaps remain a hurdle, with 63 percent of employers hesitant about candidates who have been unemployed for more than three months. Upskilling carries significant weight in hiring decisions. A total of 76.6 percent of respondents say that recent training, certifications or skills development are essential when assessing applicants. Employers continue to place high value on digital and AI skills, followed by project management, data literacy, technical certifications and communication abilities.

Recruitment agencies continue to play a significant role in the hiring process. More than 76 percent of employers rely on agencies to shortlist candidates, which helps reduce mismatches and hiring delays, particularly for roles that are harder to fill.

“Singapore’s hiring landscape is changing quickly, and the data shows that employers are becoming more selective in how they assess readiness and skills. Mid-career candidates and those returning to the workforce are evaluated not just by experience, but also by their recent learning efforts and job readiness. These insights provide important direction for organisations looking to strengthen their hiring strategies and adapt to shifting workforce expectations,” said Cheryl Ng, Country Director, Singapore, Rakuten Insight.

Singapore’s rapid digital transformation continues to widen the gap between employer expectations and jobseeker readiness. Employers increasingly value preparation, skills evidence and proactiveness. Jobseekers who lack recent activity or training often struggle to demonstrate immediate value, highlighting opportunities for companies, agencies and policymakers to support fairer hiring evaluations and re-entry pathways.

“In Singapore’s fast-moving job market, hiring managers are under pressure to make decisions quickly. Yet many still hesitate when faced with career gaps or non-traditional profiles. This report shows that readiness signals, such as upskilling, re-entry motivation and transparency, can make a meaningful difference. Recruitment agencies play an important role in surfacing these overlooked talents,” said Shoichi Sunaga, Branch Manager, Reeracoen Singapore.

Related articles: Singapore workers preparedness for digital transformation, Singapore’s Gen Z prioritises income over free time, Gen Z shopping behaviour and brand preferences.

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