Banking, IT, and Media Sectors Hit Hard, While Import/Export and Legal Fields Show Growth

Singapore’s online hiring activity faced a significant downturn in February 2024, with the Monster Employment Index showing a 22% year-on-year decline. The index dropped from 138 to 108, reflecting broader economic challenges such as recessions, slowdowns, and uncertainties that have led to reduced investments and weaker demand for services.

The Banking, Financial Services, and Insurance (BFSI) sector was the hardest hit, experiencing a sharp 36% drop in hiring activity. This was closely followed by the IT/Telecom/ISP sector, which saw a 35% decline, and the Advertising, Market Research, Public Relations, Media, and Entertainment industries, which reported a 32% decrease.

However, amidst the downturn, some sectors showed resilience. The Import/Export sector managed a 1% growth in hiring, and the legal sector bucked the trend with positive growth, demonstrating stability in certain functional areas. In contrast, the Software/Hardware/Telecom sector was the hardest hit, suffering a 50% decline, while Finance & Accounts and Real Estate saw 34% and 32% drops, respectively.

The decline in hiring is largely attributed to advancements in technology, particularly the rise of artificial intelligence, which has led to the adoption of automated solutions in areas like customer service. As businesses reassess spending, many are reshaping their operations and incorporating cost-saving technologies.