Annual online hiring sees 22% dip in February amidst economic challenges

The BFSI sector saw a 36% decline in hiring activity.

Annual online hiring in Singapore declined by 22% year-on-year (YoY) in February due to a “negative economic shift in the market,” with the Monster Employment Index declining to 108 this month from 138 in the same period last year according to talent platform foundit.

In a report, foundit said the Import/Export Sector saw a 1% annual growth in hiring activity, whilst the Banking, Financial Services and Insurance (BFSI) declined by 36% YoY.

It is followed by the IT/Telecom/ISP which fell by 35%, and the Advertising, Market Research, Public Relations, Media and Entertainment Industries which were down by 32%.

“This trend can be attributed to economic slowdowns, recessions, or uncertainties that lead to reduced investments, and lower demand for services,” according to the report.

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Meanwhile, in the functional areas, only the legal sector saw positive growth.

Software/Hardware/Telecom saw the steepest decline at 50%, followed by Finance & Accounts at 34% decline and Real Estate at 32%.

“The decline can primarily be attributed to significant advancements in technology, particularly in artificial intelligence, which has enabled the widespread adoption of automated customer service solutions,” foundit said.

It added businesses are reevaluating their expenses and transforming their operations to adopt technological operations that would reduce costs.