Most Singapore employers are expected to continue hiring steadily this year, according to a report released by recruitment consultancy Michael Page on Thursday.

But the 2014 Michael Page Salary & Employment Forecast for Singapore also noted that salary increases will remain conservative this year.

The report said that 88 per cent of employers surveyed expect hiring activity to hold steady or improve in 2014.

This is "an optimistic forecast for Singapore's employment market in the coming 12 months," said the consultancy.

The lack of skilled talent will be a persistent problem, said 48 per cent of survey respondents. As such, skill shortages and staff turnover are likely to persist.

Those worried about staff turnover made up 53 per cent of respondents polled.

Mr Jerome Bouin, PageGroup Singapore managing director, said: "While Singapore's employment market will continue to be active during 2014, employers are generally adopting a more considered approach with tighter controls around the recruitment process to make sure professionals are the right fit for their organisation."

He added that this approach and effective retention strategies will help to address staff turnover and the shortage of talent.