A significant portion of Singaporean workers express anxiety about job security due to automation and restructuring, despite ongoing employment growth.
Singapore, Singapore Jul 12, 2026 ALN: Nearly one in two employees in Singapore believe their jobs could be affected by restructuring, automation, or cost-cutting this year, pointing to rising anxiety even as employment continues to grow.
According to recruitment firm Morgan McKinley’s 2026 Workplace Trends Report, 49% of employees in Singapore expect their roles could be affected by restructuring, automation, or cost-cutting in 2026. That’s well above the global average of 37%. This statistic highlights a growing concern among the workforce about the impact of technological advancements and economic pressures on job security. The increasing prevalence of artificial intelligence (AI) and automation technologies has transformed various sectors, leading to fears that many traditional roles may become obsolete.
The findings come as businesses become more careful about hiring. Recent Ministry of Manpower figures also showed retrenchments reached their highest quarterly level since 2023, while job vacancies fell. This trend underscores a tightening labor market where companies are reconsidering their workforce needs amid economic uncertainties and technological changes. The dual pressures of inflation and increasing operational costs have compelled organizations to streamline their operations, resulting in job cuts and a more cautious approach to hiring.
The report shows workers in the global survey are taking action instead of waiting. Among employees worried about losing their jobs, 85% said they’d start searching for another role. Another 64% planned to learn new skills or gain more qualifications to improve their chances in the job market. This proactive approach reflects a shift in mindset among employees who recognize the need to adapt to an evolving job landscape. Upskilling has become a crucial strategy for workers, not only to enhance their employability but also to navigate the uncertainties posed by rapid technological advancements.
The findings suggest many workers now see upskilling and career moves as practical ways to stay employable while businesses continue investing in AI and reviewing costs. As companies increasingly adopt automation and AI technologies to enhance efficiency and reduce labor costs, employees are motivated to diversify their skill sets to remain relevant. This trend indicates a growing awareness of the importance of lifelong learning in today’s fast-paced work environment.
The report also found that Singapore is still one of the most office-focused places to work. About 37% of employees here work from the office five days a week, more than twice the global average of 17%. Only Hong Kong recorded a higher share at 60%. This high percentage of office-based work is indicative of Singapore’s corporate culture, which traditionally emphasizes in-person collaboration and face-to-face interactions. However, this does not necessarily match what employees want.
Across all markets surveyed, only 9% of respondents said they’d choose to work from the office five days a week if given the choice. Most preferred hybrid arrangements instead, showing many workplaces are still out of step with employee preferences. The desire for flexibility in work arrangements has grown significantly, especially in the wake of the COVID-19 pandemic, which forced many organizations to adopt remote work policies. Employees are increasingly valuing work-life balance, and the traditional office model may need to evolve to accommodate these changing expectations.
Morgan McKinley’s survey gathered responses from 2,799 employees and 214 employers across multiple markets in late 2025. Singapore’s labour market has continued to expand. Total employment rose by 9,400 in the first quarter of 2026, marking the 18th straight quarter of employment growth since the fourth quarter of 2021. This sustained growth in employment figures is a positive sign for the economy, suggesting resilience despite the challenges posed by automation and cost-cutting measures.
Even so, the survey suggests many employees are looking beyond today’s numbers and paying closer attention to how automation, AI adoption, and company cost controls could affect their careers in the years ahead. The juxtaposition of current employment growth against the backdrop of technological disruption creates a complex environment for workers. While job opportunities may be available, the nature of these roles is changing rapidly, and employees must remain vigilant and adaptable.
Learning new skills has become less about staying competitive and more about staying prepared. No one can predict how every job will change, but keeping skills current gives workers more options when the market shifts. This notion of preparedness is crucial in an era where the only constant is change, particularly in the realm of technology. Employees who actively seek to enhance their skills and knowledge are likely to fare better in a job market that is increasingly influenced by AI and automation.
Read related: Less than 2 in 5 Singapore employers are hiring in the next 3 months, but AI and technology sectors are still recruiting. This highlights a potential mismatch between the skills available in the workforce and the needs of employers, particularly in industries that are experiencing growth due to technological advancements. As such, there is an urgent need for targeted training programs and initiatives that can help bridge this gap, ensuring that workers are equipped with the necessary skills to thrive in the evolving job landscape.
The implications of these findings are significant. As workers express concern over their job security, it underscores the need for both employees and employers to engage in meaningful conversations about the future of work. Employers must recognize the anxieties of their workforce and consider implementing strategies that not only address operational needs but also support employee development and job security.
Moreover, the trend toward upskilling indicates a shift in the employer-employee dynamic. Companies that invest in their workers' education and training may find themselves better positioned to navigate the challenges brought on by automation and AI. By fostering a culture of continuous learning, organizations can enhance employee loyalty and reduce turnover rates, which can be costly in times of economic uncertainty.
Additionally, as Singapore continues to position itself as a global business hub, the need for a skilled workforce becomes even more pressing. The government and educational institutions may need to collaborate with businesses to develop training programs that align with the demands of emerging technologies and industries. This partnership can help ensure that the local workforce remains competitive on a global scale.
In conclusion, the findings from Morgan McKinley’s 2026 Workplace Trends Report paint a complex picture of the current employment landscape in Singapore. While the labor market shows signs of growth, the anxiety surrounding job security due to automation and restructuring is palpable. Both workers and employers must adapt to these changes, with an emphasis on upskilling and flexibility in work arrangements. The future of work in Singapore may depend on how well both parties can navigate these challenges and seize the opportunities that technological advancements present.
To learn more about the latest developments in Employment & Labor, stay updated with our exclusive reports and analyses on AiLensNews.
