The employment outlook in Singapore sees signs of improvements as hiring expectations rise for the first time since the first quarter of 2007.

A survey by recruitment firm Hudson shows that 26 per cent of executives forecast more hiring for this quarter, an increase from last quarter's 20 per cent.

This comes after a period of rising unemployment and pay cuts due to the global financial crisis.

Hiring expectations are up in almost every sector with the healthcare and life sciences sector recording the highest hiring expectations.

Only a slight decrease in expectations to hire is posted in the Media, PR and Advertising sector.

Hudson's Country Manager for Singapore, Gina Mclellan explains the hiring optimism :

"I think the sentiments in the market is feeling a lot more positive. I think clients are starting to see that the work is becoming more sustainable, a lot of the deals that are now in place are feeling a lot more solid. So, I think anecdotally there's a lot of evidence that the market has stabilised and that in some respect we've seen the worst. I think also that many of the government's stimulus package ideas have come into full effect, so companies have been able to make some significant savings."

Those planning to reduce headcount also fell to 14 per cent.

This is lower than the 19 per cent recorded in the previous quarter.

Close to 60 per cent of respondents said that they will keep headcount steady for this quarter.

Retaining staff is also what most members of the Singapore Business Federation intends to do.

Teng Theng Dar is it's Chief Executive Officer :

"Based on the survey that we did in Q1, based on the sample size we have within the Singapore Business Federation members, we know that quite a number of companies are taking the stand of keeping whatever they have, rather than employing the new ones."

According to the Hudson which polled 700 executives from all key business sectors in May earlier this year, there's optimism that the region's economies could start their recovery this year.

12 per cent of respondents shared the view.

While, almost two-thirds expect recovery in 2010.

Ms Mclellan elaborates :

"Most companies are saying that they're expecting some kind of recovery around mid-2010. If you're talking about a full recovery, so a full return to GDP growth, then that's when people are saying it's going to be towards second half of 2010. If you're talking about just looking at returns to headcount increases, returns to salary where people might have had their salaries reduced or have their days reduced, that's probably more in line with what's going to happen."

However, Mr Teng is still cautious:

"I think we need to be very careful when we use the word recovery. I think for us we're looking out for a sure sign of upturn, where everyone is confident that indeed the upturn is going to happen. Next year, recovery means we are getting better order books, more importantly is when can we have a common understanding that indeed the sign of upturn is with us and leading towards I would use the word partial recovery because a full recovery will still take time."