• By Ria Duneja
Singapore’s finance and insurance sector is expected to cut jobs in the third quarter of 2026.
The industry recorded a Net Employment Outlook (NEO) of minus 2%, according to ManpowerGroup’s latest Employment Outlook Survey.
The figure means more employers plan to reduce staff than hire new workers between July and September.
Among Singapore’s major industries, finance and insurance posted the weakest hiring outlook.
Growing caution
The sector lagged well behind other industries. Manufacturing recorded the strongest outlook at 25%. Construction and real estate followed at 20%, as reported by Insurance Asia.
Across all sectors, Singapore’s overall Net Employment Outlook stood at 13%. The survey gathered responses from nearly 600 employers.
The national outlook was lower than the previous quarter. It was also 11 percentage points below the level recorded a year earlier.
ManpowerGroup said hiring plans were being supported by business expansion.
Planned workforce reductions, however, were linked to consolidation and optimisation efforts.
Global picture
The situation in Singapore differs sharply from global trends.
Worldwide, the finance and insurance sector recorded a Net Employment Outlook of 29% for the third quarter of 2026.
That was one percentage point higher than a year earlier.
The sector ranked among the strongest hiring industries globally. Only information, at 32%, and construction and real estate, at 31%, reported stronger outlooks.
The global survey covered more than 40,500 employers across 42 countries. Overall hiring sentiment worldwide stood at 26%.
AI push continues
Meanwhile, insurance companies are accelerating their investment in artificial intelligence.
A separate report from GlobalData found insurers are moving quickly to adopt AI as competition intensifies.
The demand for AI talent is rising just as fast. GlobalData’s job analytics data showed 63,293 active AI-related vacancies in the insurance sector during 2025. That was the highest annual figure on record.
It also marked a 50.9% increase compared with 2024.
Readiness concerns
Despite the hiring surge, questions remain about AI’s readiness.
A GlobalData poll conducted during the first two quarters of 2026 highlighted growing concerns.
Nearly a quarter of the 113 respondents said AI is not yet ready for widespread use in the insurance sector.
The findings reveal a widening gap. Insurers are investing heavily in AI capabilities. Yet many industry professionals remain cautious about deploying the technology at scale.