Q2 2025 HR Market Insights
- Martin Hill
- 4 days ago
- 4 min read
Q2 2025 saw a continued rebound in hiring sentiment across Southeast Asia, with Singapore’s stable macroeconomic outlook providing a foundation for cautious growth. The country’s resident unemployment rate remained low at 2.9% in Q1 2025, according to the Ministry of Manpower, reinforcing broader employer confidence in workforce planning.
Organisations that had paused HR recruitment are now cautiously resuming strategic hiring and workforce planning. Rising salary expectations and skills shortages have prompted a shift toward contract and project-based hiring. Meanwhile, although interest in AI-led HR transformation remains high, actual adoption is still limited, held back by capability gaps and a cultural preference for human-led decisions in talent processes.
Lets take a further look at 2025 HR Market Insights for Q2
What Are the HR Trends?
In Singapore, HR leaders are navigating the dual pressures of business expansion and digital transformation. Q2 2025 saw a surge in interest around AI in HR, but actual implementation remains limited. Only a small fraction of companies have integrated AI into recruitment or performance processes, largely due to capability gaps and a preference for preserving the “human touch” in talent decisions.
There’s also a growing push to restructure HR teams, breaking down traditional silos. We’re seeing more agile, cross-functional HR roles, where HRBPs are expected to cover workforce planning, change, internal mobility, and even light analytics.
Singapore-based MNCs are increasingly appointing regional HR leaders who can manage decentralised teams across Asia while driving global alignment. There’s also a sharper focus on upskilling, particularly in reward, data analytics and stakeholder influencing.
What Companies Are Hiring?
Large MNCs in the region, particularly those with regional headquarters in Singapore, are ramping up hiring after a slow 2023. Many are expanding TA and HRBP functions to support growth in APAC markets.
Regional banks, private equity firms, and global healthcare companies are leading hiring momentum, especially those undergoing digital transformation or expanding into Southeast Asia. Startups and Series B-C funded scaleups are cautiously rebuilding headcount, often beginning with HR hires to prepare for organisational maturity and compliance.
Which Industries Are Hiring?
High Growth: Financial services (especially private wealth and insurance), healthcare, and professional services
Stable Growth: Technology, transportation/logistics, and education.
Cautious Hiring: Manufacturing, construction, and consumer
Companies in consumer goods, electronics, and manufacturing have slowed HR hiring due to supply chain disruptions and trade uncertainty linked to US tariffs.
Which HR Roles Are in Demand?
Hiring activity for core HR roles has increased compared to last quarter, particularly in functions tied to growth, capability building, and systems delivery. In demand this quarter are:
HR Business Partners – Especially those supporting regional teams or transformation agendas with strong stakeholder management skills
Talent Acquisition Managers & Leads – Focused on pipeline building, employer branding, and managing complex recruitment needs
Learning & Development / Talent Management Leads – Driving leadership development, succession planning, and capability frameworks
People Analytics & HRIS Specialists – Maintaining data accuracy, reporting, and supporting system improvements across platforms like Workday or SuccessFactors
Reward
Companies in Singapore are focused on maintaining competitive and compliant compensation structures amid rising cost pressures. Flexible benefits are also being revisited, particularly in sectors like technology and financial services. The emphasis remains on core reward delivery and operational effectiveness.
HR Shared Services
HR Shared Services teams in Singapore are focused on streamlining core processes and improving service delivery and employee experience through better use of technology.
Some roles now include responsibility for workflow mapping and supporting ticketing systems. While AI use is still minimal, basic process automation and reporting tools are becoming more common in day-to-day operations.
HR Analytics
More companies are investing in analytics to support business-aligned decision-making. In Q2, we saw increased demand for analysts who can focus on systems support, reporting, payroll, and compliance . Common tasks include maintaining data accuracy, generating scheduled reports, and analysing attrition trends. Only a handful of roles involve strategic analytics, while the majority centre on ensuring reliable, clean data.
Talent Acquisition
TA teams are rebuilding after 18 months of lean hiring. Recruiters with strong networks, sourcing expertise, and the ability to manage complex stakeholder groups are in high demand. There’s a growing focus on internal mobility and talent mapping, as businesses look to unlock hidden capacity. While AI tools are being explored, they are not yet widely adopted beyond initial sourcing pilots.
Talent Management
Talent Management is gaining renewed focus, particularly around leadership development, succession planning, and career pathways. Some organisations are combining Talent Acquisition and Talent Management to better align hiring with long-term capability building.
Priorities include designing performance and talent review cycles, building development frameworks for future leaders, and formalising internal mobility structures. Most efforts remain focused on strengthening foundational talent processes across the organisation.
Conclusion - Q2 2025 HR Market Insights
The HR market in Singapore continued its recovery in Q2 2025, with steady demand for business-critical roles and a shift toward rebuilding core HR capabilities. While transformation themes like AI and predictive analytics remain part of the conversation, most organisations are focused on strengthening fundamentals, talent acquisition, reward, systems, and development.
Hiring remains selective, but sentiment is more confident than in previous quarters, with companies taking a pragmatic approach to growth and capability building. For more insights on HR hiring and strategy, explore our recent articles: learn how to keep candidates engaged through the hiring process, understand how to structure a performance-based job description, and explore best practices for interview scorecards. Each article offers practical tools and advice for building stronger HR functions across Asia.
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