ManpowerGroup’s Talent Shortage Survey shows that 83% of companies in Singapore struggled to hire in 2025, ranking the country among the most talent-starved markets globally. This is a sharp increase from just 10% in 2014, reflecting how demand for skills has outpaced supply over the past decade.
The challenge cuts across all company sizes. Even small firms with fewer than 10 employees report a 75% shortage, while large enterprises with over 5,000 staff face an even higher 85% shortage. In short: no company is immune.
Some sectors are facing a crisis point:
For SMEs, which already face rising costs and limited resources, the shortage is particularly painful.
Employers in Singapore aren’t just looking for headcount — they need very specific skills.
Without these capabilities, companies risk falling behind in digitalisation, compliance, and sustainability — all critical to growth in today’s economy.
Singapore businesses face rising manpower costs and skills gaps in 2025. Learn why hiring is tough — and how CCP grants can ease the burden
The manpower crunch comes at a time when wages are rising. According to Mercer, salaries in Singapore are expected to grow between 2–5% in 2025, even as business sentiment remains cautious. Companies are under pressure to raise compensation, improve benefits, and rethink workplace culture just to attract and retain employees.
Why Upskilling Isn’t Easy
Upskilling and reskilling could be the answer, but businesses face hurdles:
In fact, 1 in 2 companies in Singapore now report challenges in upskilling or reskilling employees as SBF National Business Survey 2025, raising serious questions about long-term workforce sustainability. Without sustained investment in training, businesses risk falling behind as skills demands shift rapidly.
The good news is that Singapore companies don’t have to tackle this alone. The Career Conversion Programme (CCP), supported by Workforce Singapore (WSG), offers up to 70% salary support when companies reskill mid-career hires, and up to 90% for mature workers above 40 or long-term unemployed.
This allows businesses to:
The talent shortage in Singapore is real and worsening. But it doesn’t have to paralyse business growth. Companies that combine proactive workforce planning, structured upskilling, and government support can not only survive 2025 — they can emerge stronger.
👉 If your company is struggling with manpower costs or planning to hire mid-career talent, now is the right time to explore the Career Conversion Programme (CCP). The funding is significant, but approval is on a first-come-first-served basis.
Talk to us today to check your eligibility and start saving up to 90% on manpower costs.
The ATHR Content Team is a group of professional writers from Singapore and the Philippines, committed to delivering informative, practical, and engaging content for business owners across Southeast Asia.
