Worker Priorities for 2026 in Singapore

by | Dec 4, 2025 | Uncategorized | 0 comments

Executive Summary

Singapore’s workforce is navigating a period of significant transformation as it enters 2026. Economic uncertainty, demographic shifts, and evolving workplace expectations are reshaping worker priorities and employer strategies. This case study examines the current landscape, projected outlook, and comprehensive solutions to address emerging workforce challenges in Singapore’s dynamic labor market.

1. Current State: Worker Priorities in Singapore (2026)

1.1 Job Security Over Career Progression

The workforce is experiencing a notable shift toward “job hugging”—workers prioritizing stability over rapid advancement. This trend reflects economic unpredictability rather than employer loyalty. Workers are choosing to remain in current positions to maintain financial security amid inflation pressures and budget constraints.

1.2 Compensation and Financial Wellbeing

Financial concerns dominate worker priorities. Only 13% of employees believe their salary has kept pace with inflation. Singapore workers experience higher financial stress than the global average (50% versus 40%), which impacts productivity by approximately 20%. Average salary increases for 2026 are projected at 4.0-4.3%, with specialized roles in technology, green energy, and healthcare commanding premium increases of 8-12%.

1.3 Work-Life Balance and Flexibility

70% of Singaporean workers cite poor work-life balance due to heavy workloads as a major concern. Traditional 9-to-5 schedules are evolving toward “microshifting”—segmented workdays that align with individual energy levels and personal needs. Workers increasingly value flexible arrangements over higher salaries, with 72% prioritizing empathy and flexibility as key retention drivers.

1.4 Mental Health and Wellbeing

Singapore faces a growing mental health crisis in the workplace. The prevalence of poor mental health increased from 13.4% in 2020 to 17% in 2022. The TELUS Mental Health Index shows 41% of workers have high mental health risk, with the national score declining to 61.6 points. Only 10% of employees feel comfortable discussing mental health challenges with employers, creating a significant gap in workplace support.

1.5 Skills Development and Career Advancement

Workers increasingly recognize the need for continuous upskilling. Over 65% of employers now prioritize micro-certifications and project portfolios in fields like data analytics, AI, and cybersecurity. The shift toward skills-based hiring reflects changing job market demands, with workers seeking clarity on advancement opportunities and professional development pathways.

2. Market Outlook for 2026

2.1 Hiring and Employment Trends

The employment landscape shows cautious optimism tempered by uncertainty:

  • Hiring Freeze: 58% of employers plan to freeze hiring in 2026, up from 50% in 2024. Smaller employers are particularly cautious, with 63% likely to halt new hires.
  • Selective Growth: Only one-third of employers plan to increase headcount, focusing on critical roles in sales, business development, technology, and digital transformation.
  • Wage Moderation: 48% of employers plan wage moderation or freezes, a 10-percentage-point increase from the previous financial year.
  • Business Sentiment: 72% of employers report uncertain prospects for 2026, reflecting global economic volatility.

2.2 In-Demand Sectors and Roles

Despite overall caution, specific sectors show strong demand:

  • Financial Services: Singapore’s role as a regional financial hub continues to drive demand for specialized finance professionals
  • Technology: AI engineering, cybersecurity, cloud infrastructure, and data governance remain critical needs
  • Green Economy: Over 20,000 new roles expected in sustainability and renewable energy by mid-2026
  • Healthcare: Regulatory affairs specialists, clinical research coordinators, and medtech engineers see strong salary growth
  • Maritime and Logistics: Singapore’s position as a logistics hub creates ongoing demand for specialized roles

2.3 Compensation Trends

Salary structures are evolving beyond base pay:

  • Average increases of 4.0-4.3% across sectors
  • Skills-based allowances becoming standard
  • Hybrid work support and wellness benefits increasingly common
  • Lower-wage workers receiving targeted support through Progressive Wage Models
  • High-demand specialized roles commanding 8-12% increases

2.4 Workforce Demographics

Singapore faces significant demographic challenges:

  • Aging workforce requiring extended career support
  • Gen Z and Millennials showing highest job mobility (57% and 45% respectively planning job searches)
  • “Conscious unbossing”—younger workers deliberately avoiding management tracks for better work-life balance
  • Growing preference for contract and project-based work (nearly 1 in 3 firms employing contractors for strategic functions)

3. Short-Term Solutions (6-12 Months)

3.1 For Employers: Immediate Actions

Emotional Salary Implementation

Move beyond monetary compensation to address worker wellbeing. Implement non-monetary benefits including flexible work arrangements, recognition programs, and career development opportunities. This addresses the gap where 79% of workers desire more flexible payment schedules and 54% seek greater control over compensation structure.

Mental Health First Response

Establish basic mental health support infrastructure including Employee Assistance Programmes (EAPs), confidential counseling access, and mental health awareness training for managers. Only 66% of Singapore employers actively address mental health risks—closing this gap is critical.

Transparent Communication

With 72% of employers facing uncertain prospects, clear communication about company performance, job security, and realistic expectations helps reduce workplace anxiety. Regular town halls and transparent decision-making processes build trust during uncertain times.

Skills Audit and Mapping

Conduct comprehensive skills assessments to identify gaps and create personalized development plans. With 62% of hiring managers preferring internal transfers to external recruitment, understanding existing workforce capabilities enables better internal mobility.

3.2 For Policymakers: Immediate Interventions

Enhanced Progressive Wage Model Enforcement

Ensure compliance with updated Progressive Wage Models for in-house security officers, administrators, and drivers. Approximately 57,600 lower-wage workers stand to benefit from these wage increases effective from mid-2026.

SkillsFuture Accessibility Campaign

Increase awareness and uptake of existing SkillsFuture programs, particularly the Mid-Career Training Allowance offering up to $3,000 monthly for full-time training. Despite availability, many mid-career workers remain unaware of these substantial support mechanisms.

Mental Health Workplace Guidelines

Strengthen tripartite advisory on workplace mental health with clearer implementation guidelines and accountability measures. The gap between policy and practice requires focused attention.

3.3 For Workers: Personal Strategies

Skills Portfolio Development

Take ownership of continuous learning through SkillsFuture programs. Focus on high-growth areas including AI, cybersecurity, data analytics, green technologies, and digital transformation. Workers should view skills as personal assets requiring active investment.

Career Health Check

Utilize government resources including Career Health SG and Career Kaki (AI-powered career advisor) to assess transferable skills, explore career pathways, and identify skill gaps. These tools provide personalized guidance backed by verified data.

Financial Literacy and Planning

Address financial stress through structured planning. Access resources through workplace financial wellness programs or community organizations. With 50% of workers experiencing money-related stress, proactive financial management is essential.

4. Long-Term Solutions (2-5 Years)

4.1 Systemic Employer Reforms

Total Rewards Framework

Transition from traditional compensation models to comprehensive Total Rewards systems integrating career development, flexibility, purpose, and financial wellbeing. This holistic approach addresses the reality that workers value meaningful work and fair leadership alongside salary.

Internal Mobility Infrastructure

Build robust internal talent marketplaces enabling cross-functional movement, skills-based deployment, and career exploration within organizations. With 62% of hiring managers preferring internal transfers, systematic internal mobility reduces costs while enhancing engagement and retention.

Technology-Enabled Flexibility

Invest in digital infrastructure supporting hybrid work, microshifting, and outcome-based performance management. Move beyond traditional attendance metrics toward productivity and results measurement.

Preventive Mental Health Programs

Shift from reactive mental health interventions to preventive approaches including regular psychosocial assessments using tools like iWorkHealth, proactive stress management training, and organizational culture transformation prioritizing wellbeing.

Skills-First Hiring Practices

Restructure recruitment to prioritize demonstrated competencies and micro-certifications over traditional credentials. Partner with training institutions to create direct pipelines from upskilling programs to employment opportunities.

4.2 Government Policy Evolution

Integrated Jobs-Skills Ecosystem

Expand the SkillsFuture movement into a comprehensive jobs-skills ecosystem connecting career guidance, skills development, job matching, and continuous learning. This includes:

  • National skills registry tracking individual capabilities
  • AI-powered career guidance tools (expansion of Career Kaki)
  • Sector-specific training hubs
  • Enhanced “queen bee” company network (currently 37 firms supporting 5,700+ companies)

Progressive Wage Model Expansion

Extend Progressive Wage Models to additional sectors beyond existing coverage (cleaning, security, landscape, food services, retail, waste management, administrators, drivers). Systematically address wage inequality across the economy while supporting productivity improvements.

Lifelong Learning Financial Architecture

Enhance SkillsFuture Credit system with regular top-ups, expanded course eligibility, and streamlined application processes. Current $500-$4,000 credits should scale with inflation and career stage needs.

Tripartite Representation Modernization

Expand tripartite partnership (government, employers, unions) to include freelancers, gig workers, and contract employees. With nearly one-third of firms employing contractors for strategic functions, traditional representation models require updating.

Mental Health Integration

Embed workplace mental health into core labor market policies including:

  • Mandatory psychosocial risk assessments for companies above certain size thresholds
  • Mental health training for all managers and supervisors
  • Integration of wellbeing metrics into business performance indicators
  • Expanded mental health professional capacity

4.3 Educational System Transformation

Work-Study Programme Expansion

Scale up Work-Study Degrees, Diplomas, and Certificates providing industry-relevant experience alongside formal education. These programs bridge the gap between academic learning and workplace readiness.

Modular Credential System

Develop stackable micro-credentials allowing workers to build qualifications incrementally while remaining employed. This addresses the 70% of workers struggling with work-life balance who cannot pursue traditional full-time education.

Industry-Education Partnerships

Deepen collaboration between training providers and employers to ensure curriculum relevance. The requirement for adult educators to complete 40 CPD hours and 80 practice hours biennially (effective April 2026) improves quality but must connect to industry needs.

Sector-Specific Academies

Establish specialized training centers for high-demand sectors (AI, green economy, healthcare, maritime) combining technical skills with essential soft skills and career pathways.

4.4 Societal and Cultural Shifts

Workplace Culture Transformation

Foster organizational cultures prioritizing psychological safety, work-life integration, and authentic leadership. Only 10% of employees feel comfortable discussing mental health—this requires fundamental cultural change.

Redefinition of Career Success

Challenge traditional linear career models emphasizing constant upward progression. Support alternative paths including lateral moves, portfolio careers, conscious unbossing, and skills-based progression.

Intergenerational Workplace Integration

Address the needs of an aging workforce (workers over 55) while accommodating Gen Z and Millennial preferences. This includes flexible retirement transitions, knowledge transfer programs, and reverse mentoring initiatives.

Community Support Networks

Expand peer support systems like the Wellbeing Champions Network connecting workplace wellbeing advocates across organizations. Community-based approaches complement organizational interventions.

5. Social Impact Analysis

5.1 Economic Resilience

Productivity Enhancement

Addressing mental health challenges alone could recover significant productivity losses. Workers with excellent employer support for mental wellbeing lose 36.7 working days annually versus 79.1 days for those with poor support—a difference of 42.4 days per worker.

Labor Market Efficiency

Skills-first hiring and internal mobility reduce recruitment costs while accelerating talent deployment. Companies report that internal moves improve productivity within 90 days of redeployment.

Inclusive Growth

Progressive Wage Models and targeted support for lower-wage workers create pathways out of poverty while building a consumption base supporting domestic economic growth. The 57,600 workers benefiting from OPW wage increases represent households with improved purchasing power.

5.2 Social Equity and Cohesion

Reducing Inequality

Systematic wage growth for lower-wage workers narrows income gaps. The commitment by 96% of employers to provide built-in wage increases for workers earning up to $2,700 monthly demonstrates collective responsibility.

Career Mobility

Enhanced upskilling infrastructure and internal mobility systems create opportunities for workers from diverse backgrounds to advance regardless of initial credentials. SkillsFuture’s emphasis on lifelong learning democratizes access to economic opportunity.

Mental Health Destigmatization

Workplace mental health programs normalize conversations about psychological wellbeing, reducing stigma and improving help-seeking behavior. This benefits not just workers but families and communities.

5.3 Demographic Sustainability

Extended Working Lives

Support for workers over 40 through SkillsFuture Level-Up Programme enables longer, healthier careers. With CPF contribution rate increases for workers aged 55-65, the system recognizes and supports extended workforce participation.

Youth Retention and Engagement

Addressing work-life balance concerns and offering clear skills development pathways helps retain younger workers who might otherwise emigrate. With 57% of Gen Z planning job searches, retention strategies have demographic implications.

Gender Equity

Flexible work arrangements and comprehensive wellbeing support particularly benefit women managing caregiving responsibilities. This enables fuller workforce participation and career progression for women.

5.4 Innovation and Competitiveness

Skills for Future Economy

Focus on AI, green technologies, cybersecurity, and digital transformation positions Singapore’s workforce for emerging industries. Over 20,000 anticipated new roles in sustainability and AI reflect structural economic evolution.

Employer Brand Strengthening

Companies prioritizing worker wellbeing, development, and fair compensation build stronger employer brands attracting top talent regionally and globally. This supports Singapore’s position as a regional talent hub.

Organizational Agility

Workforces with strong learning cultures and mental resilience adapt more effectively to disruption. Investment in workforce development builds organizational capacity to navigate uncertainty.

5.5 Public Health Benefits

Preventive Health Approach

Workplace mental health interventions reduce downstream healthcare costs. Prevention-focused strategies address issues before they require intensive clinical intervention.

Reduction in Workplace-Related Health Issues

Addressing work-related stress, burnout, and exhaustion reduces cardiovascular disease, anxiety disorders, and depression. The 17% prevalence of poor mental health represents a significant public health burden.

Holistic Wellbeing

Integration of physical, mental, and financial wellbeing programs creates comprehensive health outcomes extending beyond the workplace into families and communities.

6. Implementation Framework

6.1 Stakeholder Responsibilities

Government

  • Policy development and enforcement
  • Funding allocation for workforce programs
  • Tripartite facilitation and coordination
  • Public awareness campaigns
  • Research and data infrastructure

Employers

  • Culture transformation initiatives
  • Investment in training and development
  • Mental health program implementation
  • Fair compensation practices
  • Internal mobility system development

Workers

  • Active skills development participation
  • Career health ownership
  • Peer support engagement
  • Feedback provision on workplace needs
  • Wellbeing practice adoption

Training Providers

  • Curriculum quality and relevance
  • Industry partnership deepening
  • Flexible delivery models
  • Outcome measurement and improvement
  • Educator professional development

Unions and Professional Bodies

  • Worker advocacy and representation
  • Training program collaboration
  • Workplace standards promotion
  • Member support services
  • Policy input and feedback

6.2 Success Metrics

Economic Indicators

  • Labor productivity growth
  • Employment-to-population ratio
  • Wage growth by income segment
  • Training participation rates
  • Internal mobility frequency

Wellbeing Measures

  • Mental health index scores
  • Work-life balance satisfaction
  • Financial stress levels
  • Workplace safety incidents
  • Employee engagement scores

Skills Development

  • SkillsFuture Credit utilization rates
  • Certification completion rates
  • Skills-based hiring adoption
  • Internal promotion rates
  • Mid-career training participation

Equity Metrics

  • Gender pay gap trends
  • Lower-wage worker income growth
  • Career advancement rates by demographic
  • Training access equity
  • Representation in leadership

6.3 Monitoring and Adaptation

Quarterly reviews of labor market indicators, annual comprehensive assessments, and continuous stakeholder feedback mechanisms ensure responsive policy and program evolution. Singapore’s tripartite model provides infrastructure for ongoing dialogue and adjustment.

Conclusion

Singapore’s workforce stands at a critical juncture in 2026. The convergence of economic uncertainty, demographic change, technological disruption, and evolving worker expectations requires coordinated action across all stakeholders. The priorities workers articulate—job security, fair compensation, work-life balance, mental wellbeing, and skills development—represent legitimate needs that, when addressed systematically, benefit individuals, organizations, and society.

The solutions outlined in this case study recognize that workforce challenges are interconnected rather than isolated issues. Mental health affects productivity; skills development enables career mobility; fair compensation supports financial wellbeing; workplace flexibility enhances work-life balance. Effective interventions must therefore be holistic, addressing multiple dimensions simultaneously.

Singapore’s existing infrastructure—the SkillsFuture movement, tripartite partnership model, progressive wage system, and emerging workplace wellbeing frameworks—provides a strong foundation. The challenge lies in deepening implementation, expanding coverage, accelerating adaptation, and ensuring that all workers, regardless of employment status or sector, benefit from these systems.

The social impact of success would be profound: a more productive, resilient, and equitable workforce; reduced inequality and improved social mobility; better public health outcomes; and enhanced economic competitiveness. The cost of inaction—lost productivity, increased healthcare burden, talent emigration, social fragmentation, and diminished competitive positioning—makes the imperative clear.

As Singapore navigates 2026 and beyond, the commitment to placing workers at the center of economic strategy, investing in their capabilities, protecting their wellbeing, and ensuring fair rewards for their contributions will determine not just labor market outcomes but the very fabric of Singaporean society.