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Contract work in Singapore and the rise of the gig economy

Singapore is quickly becoming the central hub in Asia for multinational companies particularly in the finance, technology, recruitment, information, and communications sectors, where there has been a recent rise in contracting jobs.

The rise of the contracting workforce in Singapore has grown since the pandemic, with many candidates exploring the gig economy to not only make money but also sample industries they are interested in exploring.

In 2021, 229,400 Singaporeans and permanent residents were employed on term contracts, making up 11.8% of the resident workforce. With the departure of many foreign workers during the pandemic there has been a noticeable increase in demand for immediate staff, which has contributed to the rise in contract staff employment.

What is the gig economy?

The gig economy is an environment where organisations hire independent workers for short term and long-term projects. This involves creating employment agreements that may require them to work on site for 6-, 12-, 18- or 24-month projects. The skill sets required for these roles vary and indicate that some roles may have niche skill requirements while some roles may not.

Once a contract ends both the contractor and employer have the option to renew or terminate the agreement.

For example, George works full time as a Network Architect for a local Singaporean bank, and he is on a 12 month contract and is working on a delivery upgrade project. He works on-site and reports to a project manager. However, his contract is with a recruitment agency who helped him find this role. He also receives his pay monthly from the agency. After 12 months, his contract ends, and he decides he wants to work for a different bank. The contract is not renewed and George is offered a different project that requires his skill set for an American bank based in Singapore. George is offered a 24 month contract which he accepts and he begins his role two weeks later.

George understands he has a highly sought-after skill set in the technology and banking industry. He chooses to work as a contractor because it allows him to work on interesting projects and make good money.

What are the benefits of contracting jobs for candidates?

  • Contracting jobs allow candidates the flexibility of working with different employers which gives them insight into the company’s work culture and working environment

  • Candidates can sample and explore new industries – a career change may have been difficult before the pandemic however, with the rise in contracting jobs candidates now have the flexibility of trying out roles in new industries

  • New skills can be acquired through contracting jobs, with the skill shortages for certain industries being at an all-time high, it means that opportunities for training have also increased

  • Candidates can expand their career opportunities with their newly acquired skills

  • Exploring the contracting world also allows some level of income for those who are not able to commit to full-time work, which gives them more flexibility in their lifestyle.

What can you do if you’re interested in exploring contracting jobs or the gig economy?

  1. Update your CV and highlight in your ‘Objective’ or ‘About Me’ section that you are interested in freelance work and contracting work

  2. Do your research on the industries you’re interested in exploring or working and when applying for a contract role highlight which skills you possess that are transferable

  3. Update your social media accounts to show you are interested in contracting opportunities

  4. Get in touch with recruitment agencies and find out if they work on contracting roles, also indicate which industry you’re interested in contracting when you have your initial discussion with the recruiter

JAC Singapore offers Contract and Payroll Services

JAC has a dedicated contracting service team that work closely with candidates looking to explore contracting jobs. Whether you are just starting out in your career or you are already working as a contractor and want to explore new roles, our expert consultants at JAC can help you find the right job.