Job market faces emerging ‘talent paradox’ as hiring turns more selective: report

Applications rise as hiring turns skills-focused.

The labour market is seeing an emerging “talent paradox,” with job applications heavily concentrated in functions such as accounting, logistics, and operations, even as hiring demand shifts towards more specialised and technical roles, according to Jobstreet by SEEK.

This mismatch means employers may receive more applications overall but still struggle to find candidates with the right skills.

Citing the Ministry of Manpower’s findings, Jobstreet said employment continued to expand in Q1, whilst unemployment and retrenchments stayed broadly stable. However, the pace of growth has slowed, suggesting that employers are becoming more cautious in their hiring decisions.

Jobseekers are also becoming more cautious and deliberate in their decisions. Jobstreet said candidates appear hesitant to move jobs, but continue to test the market by applying in greater numbers.

Many are prioritising roles that better align with their expectations for flexibility, stability, or purpose, even if this means accepting a lower title or pay on paper.

For employers, Jobstreet said success will depend on how clearly roles explain expectations, trade-offs, and alignment with evolving candidate priorities.

For jobseekers, the platform said a more deliberate approach is needed, including focusing on transferable skills, targeting growth sectors, and moving beyond high-volume applications.