It’s not doom and gloom… but it’s not fireworks either.

As we roll into the second half of 2025, the recruitment market continues to send mixed signals.

Some agencies had a strong Q1. Others bounced back in Q2. But across the board, there’s a sense of weariness and hesitation  and much of it is tied to continued global uncertainty, slow hiring processes and local hiring freezes.

Here’s what we’re seeing on the ground:

REGIONAL TRENDS

Singapore, Hong Kong, and Australia remain cautious.

Layoffs continue in some sectors, especially in larger corporates ,yet we’re also seeing real innovation in AI and tech that’s fuelling growth in semiconductors, data centres, and AI-adjacent roles.

The bright spots?
Philippines, Malaysia, and Vietnam, where we’ve seen a push for shared services and low-cost centres. Clients are rethinking regional footprints – and those with genuine regional delivery capability are winning.

THE AGENCY LANDSCAPE

There’s been a wave of new recruitment startups, but little real innovation in delivery or model.

Founders who can’t gain traction may start heading back to bigger brands or leaving the industry altogether.

Many Singapore-only firms are feeling the pinch, while regional players continue to outperform.

TALENT TALK

We’ve seen a sharp drop-off in underperformers leaving the industry. Those who’ve stayed are:

• More experienced
• More consultative
• Far more committed

Contracting and Interim remain a focus – but demand is mostly for recruiters who can build desks from scratch. Unfortunately, the supply of those risk-takers remains thin – most want something already up and running.

THE AI SHIFT

AI is definitely helping with:

• Content creation
• Process automation
• Speed to market

What it’s not doing (yet)?
Replacing real consulting skills.
Agency are interested in good tools, but we’ve yet to see any truly groundbreaking tech that transforms agency recruitment end-to-end.

For now it’s a productivity booster, not a game-changer.

WHAT’S NEXT?

This market feels like it’s in “wait and see” mode.

Not in freefall. But not flying either.

If you’re in growth mode, this is the time to be bold – to back your good people, double down on your niche, and innovate where others hesitate.

Our take?

The second half of 2025 will belong to recruiters and leaders who are:

• Calm in uncertainty
• Nimble in strategy
• Brave enough to invest while others wait

If you’re building or considering your next move, we’d love to talk.

Until then, stay sharp!