The big picture: Businesses across six Southeast Asian markets are shifting to selective hiring, prioritizing operational efficiency and critical skills over broad workforce expansion, driven by increased investment in AI and technology.

Why it matters: This trend signals a fundamental change in workforce planning, requiring staffing firms and HR leaders to focus on targeted recruitment, reskilling, and capability development to meet evolving business needs.

Between the lines:

• Between 32% and 47% of businesses surveyed are hiring selectively, compared to 7% to 16% actively expanding their workforces.
• Operational efficiency and AI/technology investment are top growth priorities across the region.
• AI and automation are beginning to influence career decisions, with 39% of Vietnamese respondents considering career changes due to technology.

Staffing & HR impact: Staffing firms must adapt by specializing in niche skills and offering robust reskilling programs, while HR departments need to strategically identify critical roles and develop internal capabilities to support technology-led growth.

The bottom line: The future of workforce growth in Southeast Asia is increasingly tied to strategic capability building rather than simple headcount increases.