Nearly 50% of Singapore employees fear job loss as AI & cost-cutting concerns grow: Report

More than a third of workers also work from the office five days a week, double the global average

Singapore, Singapore Jul 10, 2026 ALN: Nearly half of employees in Singapore expect their jobs to be affected by restructuring, automation, or cost-cutting measures in 2026, according to Morgan McKinley’s latest 2026 Workplace Trends Report. This statistic reflects a growing concern among the workforce regarding the impact of technological advancements and economic pressures on job security. The report highlights an environment where employees are grappling with the dual forces of innovation and economic uncertainty, leading to heightened anxiety about their future employment prospects.

At 49%, the figure is significantly higher than the global average of 37%. This discrepancy highlights a unique aspect of Singapore's employment landscape, where the rapid pace of technological integration and economic fluctuations may be more acutely felt than in other regions. Singapore's position as a global financial hub and its commitment to embracing technology have created a dynamic yet precarious job market. The report’s findings come amid growing uncertainty in Singapore’s labour market, which has been marked by both resilience and volatility.

While overall employment has continued to grow, larger employers have become increasingly cautious about hiring. Many are now planning to reduce headcount this year, indicating a shift in the employment strategies of major companies. Recent data from the Ministry of Manpower has shown that retrenchments climbed to their highest quarterly level since 2023, while job vacancies have declined. This trend suggests that the job market is experiencing a tightening, which could further exacerbate employees' fears regarding job security. The interplay between technological advancements and economic realities is leading to a cautious approach from employers, who are reevaluating their workforce needs in light of changing market conditions.

How are employees responding?

While Morgan McKinley did not provide Singapore-specific figures for how employees are responding to job insecurity, the global findings suggest many workers are already taking steps to future-proof their careers. The proactive approach of employees in response to job insecurity is crucial, as it reflects a broader trend of adaptability in the face of economic challenges. Workers are increasingly aware that the job landscape is shifting, and they are seeking ways to remain relevant and competitive.

Among employees who fear losing their jobs, 85% said they would start looking for a new role, while 64% indicated they would invest in new skills or additional qualifications. These statistics suggest that workers increasingly view upskilling and career mobility as essential strategies to remain competitive amid economic uncertainty and rapid technological change. This shift towards continuous learning and adaptability is indicative of a workforce that is aware of the evolving demands of the job market. As industries transform and new roles emerge, the ability to acquire new skills quickly will be paramount for individuals seeking to navigate their careers successfully.

Singapore is one of the world’s most office-based workforces

Alongside concerns over job security, employees in Singapore are also spending considerably more time in physical workplaces. The report found that 37% of employees in Singapore work from the office five days a week, a figure that is more than double the global average of 17%. This statistic positions Singapore as one of the world’s most office-centric employment markets, second only to Hong Kong, where 60% of employees reported similar working arrangements. The strong preference for in-office work may be attributed to cultural norms, company policies, and the nature of certain industries that thrive on in-person collaboration.

However, this does not necessarily reflect what employees want. Globally, only 9% of respondents indicated that they would choose to work from the office five days a week if given the option, with most preferring hybrid arrangements instead. This disconnect between employee preferences and workplace policies is a significant issue that many organizations may need to address in order to improve employee satisfaction and retention. As companies strive to create a more flexible work environment, understanding and responding to employee desires for work-life balance will be crucial in shaping future workplace strategies.

The findings highlight an ongoing disconnect between employee preferences and workplace policies in many markets. As companies continue to navigate the complexities of hybrid work models, understanding employee desires for flexibility and work-life balance will be crucial in shaping future workplace strategies. The traditional model of work is being challenged, and organizations must adapt to the changing expectations of their workforce to remain competitive in attracting and retaining talent.

What lies ahead for Singapore’s job market?

Morgan McKinley’s findings are based on responses from 2,799 employees and 214 employers across the participating markets, collected through an online survey in late 2025. The data provides a snapshot of the current employment climate and the sentiments of both employees and employers as they prepare for the future. The insights gained from this survey are critical for understanding the evolving landscape of work in Singapore and the factors influencing employee attitudes towards job security.

While Singapore’s labour market continued to expand in the first quarter of 2026—with total employment rising by 9,400, marking the 18th consecutive quarter of growth since the fourth quarter of 2021—the survey suggests that workers remain concerned about what lies ahead. This ongoing growth, while positive, is juxtaposed against the backdrop of rising layoffs and a cautious hiring approach from larger employers. The paradox of growth amidst uncertainty underscores the complexities facing the workforce, as employees grapple with the realities of an evolving job market.

• Read other articles we’ve written on Singapore’s job landscape here.

More large employers in Singapore are planning layoffs, while small businesses keep hiring. This trend indicates a potential bifurcation in the job market, where smaller enterprises may be more agile and willing to take risks in hiring, while larger corporations may be more conservative in their approach. This divergence could lead to a landscape where job opportunities are more readily available in certain sectors or company sizes, further complicating the job search for many employees. The contrast in hiring practices between large and small companies may reflect differing levels of financial stability, risk tolerance, and adaptability to market changes.

As the job market continues to evolve, it will be essential for both employees and employers to adapt to the changing landscape. For employees, this may mean prioritizing skill development and networking in order to remain competitive. For employers, understanding the needs and concerns of their workforce will be critical in attracting and retaining talent in an increasingly competitive environment. Organizations that prioritize employee engagement, provide opportunities for growth, and foster a supportive workplace culture will likely emerge as leaders in talent retention.

In conclusion, the findings from Morgan McKinley’s report underscore the complex dynamics at play in Singapore’s job market. With nearly half of employees fearing job loss and a significant number working from the office full-time, the implications for both workers and employers are profound. As the economy continues to navigate the challenges of automation, restructuring, and cost-cutting, the focus on adaptability, skill development, and employee preferences will be pivotal in shaping the future of work in Singapore. The ongoing dialogue between employers and employees will be essential in fostering a resilient workforce capable of thriving in an uncertain economic landscape.

Featured Image Credit: Ministry of Manpower