Understanding the Current Labour Landscape in Singapore

According to the latest statistics data from the Ministry of Manpower:

• Only 2,300 net new jobs were created in Q1 2025—down from 7,700 in Q4 2024.
• Retrenchments dipped slightly to 3,300, but the volume remains historically elevated.
• Resident unemployment inched up from 2.8% to 2.9%, and citizen unemployment rose to 3.1%.
• Total retrenchments dipped slightly to 3,300 from 3,680—about 1.3 per 1,000 employees.
• Slower global trade, cautious business sentiment, and even a Q1 technical recession risk with GDP contracting seasonally by 0.6%.

These numbers point to a labour market that, while not in crisis, is clearly cooling. And with Singapore’s economy flirting with a technical recession, employers are under pressure to do more with less.

This backdrop demands agility—employers need to adapt fast yet scale smart in headwinds where manpower dynamics shift quickly. The real question is: How do you plan your workforce smartly to adapt and scale—without compromising on cost-efficiency or talent agility?

Key Workforce Planning Challenges in a Slowing Economy

Before looking at solutions, let’s examine the common workforce planning challenges Singaporean employers face today:

1. Unpredictable Talent Demand

With market conditions changing rapidly, forecasting future labour needs becomes harder. Should you hire more staff or delay expansion? Can you retrain existing teams instead?

2. Limited Visibility into Workforce Metrics

Many companies struggle to answer basic questions like:

• What’s our actual headcount?
• Which departments are overstaffed or understaffed?
• Who’s nearing burnout or disengagement?

3. Fragmented HR and Payroll Systems

Disconnected tools make it difficult to get a full picture of your workforce. Attendance, payroll, and shift management are often siloed, leading to inefficiencies and errors.

4. Morale Risks and Communication Gaps

Uncertainty breeds anxiety. Without clear communication and transparent systems, employees may disengage—or worse, leave.

How to Run Strategic HR than Cost-Cutting

Amidst economic uncertainty, growth isn’t just about slimming budgets—it’s about strengthening fundamentals:

1. Focus on Resilient Sectors

Healthcare, social services, and finance continue hiring—even when outward-facing streams slow. Employers in tech-affected domains (e.g. manufacturing, professional services) must redeploy teams, reskill staff, and pivot roles smartly.

2. Shift from Reactive to Proactive HR Management

Labour demand moderating means hiring may pause, but retention, productivity, and morale matter more. Tools that support streamlined internal moves, reskilling, and career ladders help firms adapt to changing demand with less churn.

3. Lean on Government Initiatives

Singapore has launched Budget 2025 schemes like the SkillsFuture Workforce Development Grant, PSG‑JR, SkillsFuture Enterprise Credit, and the Jobseeker Support scheme—offering subsidies for reskilling and restructuring. Employers can pivot existing hires to new roles, funded and supported with minimal cost and jolts.

Discover your best-fit government support initiative on Singapore Government’s official page for Budget 2025.

Implement Smart Workforce Planning with HR software

When external forces threaten stability, internal systems must be rock-solid. Here's how HR software can be the bedrock:

1. Automate Compliance & Payroll Complexity

• Singapore’s changing CPF, IRAS, and employment regulations demand precision. HR and payroll software can work seamlessly for compliance.
• This ensures automatic, error-free disbursements, freeing finance and HR to focus on high-impact work rather than manual workloads.

2. Streamline Shifts, Attendance & Labour Costs

• In labour-intensive sectors hit hardest (F&B, retail, services), shifts and attendance visibility are critical.
• HR and payroll software Gutsy integrates attendance, shift planning, and payroll—so staff movements are tracked in one system, enabling real-time insight and faster responses when demand dips or surges

3. Centralise & Scale HR Processes

• Gutsy supports mass onboarding, edits, and team restructuring—critical during reorganization.
• Centralised data allows HR to spot trends, reallocations, or attrition—letting them scale processes without scaling headcount.

4. Build Trust with Transparency

• Real-time payslips, shift info, and attendance logs strengthen transparency, morale, and trust—these are the key when jobs are under scrutiny.
• Employees feel informed, reducing speculations and supporting retention when layoffs or restructures feel imminent.

5 Steps to Strengthen Workforce Planning in 2025

This is where a robust, unified HR and payroll system like Gutsy’s HR and payroll software becomes invaluable. Gutsy isn’t just a payroll tool—it’s a full-stack workforce management solution designed for Singaporean SMEs navigating volatile markets.

Here’s how Gutsy supports strengthening your workforce planning:

Step 1: Audit Your Current Workforce Structure

Start by understanding:

• Current headcount vs output per department
• Overtime costs
• Leave usage patterns
• Payroll discrepancies

Gutsy’s reporting tools make this easier by centralising your HR and payroll data.

Step 2: Segment Roles Based on Business Priorities

Not all roles are created equal. Use Gutsy to classify:

• Core roles: essential for revenue delivery
• Flexible roles: part-time, contract, or seasonal
• Potential for reskilling: staff who can shift to higher-priority areas

This segmentation supports more agile decision-making.

Step 3: Optimise Labour Allocation

For businesses in retail, F&B, logistics, or healthcare, shift planning is workforce planning. Gutsy enables:

• Flexible scheduling based on peak periods
• Attendance-linked pay calculations
• Cost control through shift optimisation

This allows you to scale operations up or down without bloating headcount or payroll.

Step 4: Scenario Planning and Forecasting

As part of your workforce planning, you may want to model different headcount or compensation scenarios. Gutsy makes it easy to:

• Forecast payroll costs under different hiring/firing models
• Track staff turnover and attrition trends
• Measure the financial impact of overtime or contractor hiring

Step 5: Communicate Transparently

Use Gutsy’s employee self-service features to keep teams informed and engaged. When employees trust the system, they’re more likely to stay productive—even amid uncertainty.

Why Gutsy Is Built for Workforce Planning in Singapore

Gutsy is designed for modern HR teams that want to be strategic, efficient, and data-driven.

• Built for Singapore compliance: CPF, IRAS, MOM-aligned
• Integrated shift, attendance, and payroll management
• Mobile-first UX for SMEs and large teams alike
• Customisable reporting for finance, HR, and C-suite

Whether you’re a scaling startup, a mature SME, or an HR team planning for future-proof operations—Gutsy gives you the tools to manage uncertainty with confidence.

Final Thoughts: Workforce Planning as a Strategic Advantage

Economic uncertainty may slow external demand, but it can sharpen internal focus. Now is the time for employers in Singapore to invest in smart workforce planning—not just for survival, but for scalable, sustainable growth.

By aligning your business strategy with real-time HR and payroll insights, automating routine admin, and building a future-ready workforce, you can turn challenges into opportunities.

And with Gutsy by your side, you’ll be equipped with the tools, data, and support to scale smart—even in the toughest seasons.

Ready to Plan and Scale Better?

Visit Gutsy’s HR and payroll software to request a free demo and see how we can empower your workforce planning for 2025 and beyond.