SME hiring set to pick up as local job-matching gains traction

Town-based pairing can shorten hiring timelines and lower costs.

Small and medium enterprises (SME) in Singapore are expected to step up hiring as a government-backed job-matching initiative brings employers and job seekers together at the neighbourhood level, helping firms tap local labour pools and cut recruitment frictions.

The Community Development Council (CDC)-led Jobs Nearby @ CDC programme links residents with openings close to home, complementing national employment schemes by offering support within local communities.

By working through town councils and grassroot networks, the initiative reaches job seekers who may not engage with centralised online platforms, said Linda Teo, country manager at ManpowerGroup, Inc. Singapore.

“The CDC-led town-level job-matching initiative… embeds employment support within neighbourhoods and bridges last-mile gaps,” she told Singapore Business Review. She described the approach as “hyperlocal and accessible,” tailored to community needs and well-suited to Singapore’s business landscape.

That localisation matters because SMEs dominate the economy. They account for about 99% of businesses and employ the majority of local workers, yet many struggle with limited recruitment visibility and small human-resources teams.

For these firms, town-based matching can shorten hiring timelines and lower costs by connecting them directly with nearby candidates.

“For SMEs with limited brand visibility or outreach, this initiative helps level the playing field,” Teo said in an emailed reply to questions, adding that job seekers often gravitate toward bigger employers unless smaller firms gain better exposure.

The push toward localised hiring fits into a broader shift in workforce policy. Hiring is moving away from rigid job descriptions toward skill-based and technology-supported models, said Sean Tan, career business leader for Mercer LLC Singapore.

Job-matching programmes help reduce friction by aligning candidates’ skills more closely with business needs, he said in an emailed response.

National programmes such as SkillsFuture reinforce this shift by encouraging lifelong learning. 

Beyond technical know-how, programmes increasingly stress skills such as judgement, synthesis and independent analysis, which are needed to navigate data-heavy environments and work alongside artificial intelligence (AI) tools, Tan said.

Labour-market data suggest conditions remain supportive. In the third quarter of 2025, employment rose by 25,100, more than double the previous quarter’s gain, according to the Ministry of Manpower.

Unemployment stayed low even as job vacancies eased to 69,200 in September from 76,900 in June.

ManpowerGroup’s survey showed 32% of employers plan to add staff in the first quarter of 2026.

Tech-enabled matching
The challenge, analysts said, is not a shortage of programmes but execution—whether firms can turn policy support into faster hiring, stronger retention, and higher productivity. Reskilling at scale is central to that effort.

Ho Seong Kim, CEO at the Singapore Institute of Management Academy Pte. Ltd., said demand is rising for both technical and human-centric skills. Employers need to build learning cultures, whilst workers should take ownership of continuous development to stay relevant.

He said demand is rising for roles in AI, data analytics, sustainability and cybersecurity, along with human skills such as teamwork, leadership and big-picture thinking.

Stephanie Ong, HR Manager - Business Partner, Jebsen & Jessen Group, said that “technical and digital skills such as AI and machine learning literacy, data analytics and data storytelling, cybersecurity, sustainability management and reporting, and renewable energy technology will be in high demand,” for the next five to 10 years.

“Employers should focus on building a culture of continuous learning, ensure that hiring processes take into account a candidate’s potential and adaptability, and integrate digital and sustainability priorities into their daily operations,” Ong said.

National workforce institutions are backing this transition with technology-enabled matching. Desmond Tan, deputy secretary-general at the National Trades Union Congress (NTUC), said Singapore’s labour strategy combines job placement, skills upgrading, and hiring incentives.

Through NTUC’s Employment and Employability Institute, firms gain access to candidates supported by career coaching and training advice.

“AI-enabled tools such as the NTUC AI Career Coach managed by e2i further enhance speed and accuracy in job matching by generating personalised job recommendations and labour market insights,” Tan said in an emailed reply to questions.

At the same time, business leaders warn of disruption. Ryan Meyer, Asia-Pacific managing director at General Assembly Space Academy Pte. Ltd., said companies are using AI to raise productivity, which could replace some roles over time. Leaders need to be open about its impact, he added.

Ecosystem players such as SGInnovate are focusing on talent transitions into deep-tech fields. 

Alicia Ng, deputy director for career and business partnering at SGInnovate, said programmes such as PowerX and Helix Immersion have helped workers move into cybersecurity and AI roles, even without technical backgrounds.

“There is a clear narrative of where the growth sectors are,” she said by telephone, adding that such programmes act as an “enabler for both the hiring organisation and the talent plan.” 

Retention remains a concern as younger workers weigh how portable their skills are across jobs.

Adaptability and willingness to learn often matter more than formal credentials, Ng said—a mindset that neighbourhood-based hiring initiatives aim to support as Singapore’s labour market evolves.