Executive Summary

Singapore’s graduate employment landscape in 2025 presents a paradox: rising salaries alongside declining employment rates. University graduates earn a median of SGD 4,500 monthly, yet only 87.1% secure jobs within six months—down from 89.6% in 2023. This case study examines the current state, identifies critical challenges, and proposes actionable solutions for students, institutions, and policymakers.


1. Current State: The Singapore Graduate Employment Crisis

1.1 The Numbers Tell a Troubling Story

University Graduates (2024 Data)

  • Employment rate: 87.1% (down from 89.6% in 2023)
  • Full-time permanent employment: 79.5% (down from 84.1% in 2023)
  • Median salary: SGD 4,500 (up 4.2% from SGD 4,317)
  • Unemployment rate: 8.5% actively seeking work

Private University Graduates (2024 Data)

  • Employment rate: 74.8% (down from 83.2% in 2023)
  • Full-time permanent employment: 46.4% (down from 58.7% in 2023)
  • 28.3% are unemployed or in involuntary part-time/temporary roles
  • Median salary for those employed: SGD 4,200

Polytechnic Graduates (2024 Data)

  • Employment rate: 87.5%
  • Full-time permanent employment: 54.6%
  • Median salary: SGD 2,900
  • Unemployment: 12.5% (comparable to COVID-19 peak of 12.6% in 2020)

1.2 The Degree Hierarchy That Matters

Top-Paying Degrees (Fresh Graduate Starting Salaries)

Degree FieldMedian Monthly SalaryEmployment RateLawSGD 7,00095%+Computer ScienceSGD 6,000-6,50092%+Data Science/AnalyticsSGD 6,000+90%+Information SecuritySGD 6,000+88%+EngineeringSGD 4,900-5,40085%+NursingSGD 4,000-4,20097%+Business AdministrationSGD 4,200-4,50080%+Arts/HumanitiesSGD 3,800-4,20061.9%Chemistry/BiologySGD 3,600-4,00051.1%

1.3 The Reality Gap: What Statistics Hide

Hidden Unemployment

  • MOM’s unemployment data excludes fresh graduates without prior work experience
  • True unemployment among under-30s: ~5.7% (vs national average of 3%)
  • Underemployment not captured: Finance graduates in admin roles, tech graduates in retail

The Contract Work Trap

  • One-third of employers offer only contract/traineeship positions
  • 12-24 month contracts are now standard for fresh graduates
  • No job security, limited benefits, uncertain conversion to permanent roles

The Skills Paradox

  • 78.8% of job vacancies don’t require degrees as main criteria
  • Yet employers demand: Python, SQL, Excel, data analytics, AI tools
  • A degree alone is no longer sufficient—practical skills are non-negotiable

2. Critical Case Scenarios: Real Graduate Journeys

Case A: Marcus – Computer Science Graduate (Success Story)

Profile

  • NUS Computer Science, Class of 2024
  • GPA: 3.6/5.0
  • 3 internships (Google, Sea Group, local startup)
  • Portfolio: 5 open-source projects on GitHub

Outcome

  • 4 job offers before graduation
  • Starting salary: SGD 6,200/month
  • Sign-on bonus: SGD 10,000
  • Promoted within 12 months to Senior Engineer (SGD 8,500/month)

Success Factors

  • High-demand field with skills shortage
  • Built portfolio beyond academics
  • Practical experience through internships
  • Demonstrated ability to deliver production code

Case B: Sarah – Business Administration Graduate (Struggle Story)

Profile

  • NTU Business Administration, Class of 2024
  • GPA: 3.4/5.0
  • 1 internship (local SME, administrative role)
  • No technical skills (Excel knowledge only)

Outcome

  • Applied to 200+ positions over 8 months
  • 12 interviews, 0 offers
  • Currently working part-time at retail (SGD 2,000/month)
  • Considering graduate studies to “wait out” the job market

Struggle Factors

  • Oversaturated field with fierce competition
  • Lack of differentiation from peers
  • No technical skills (Python, SQL, analytics)
  • Generic internship with no tangible deliverables
  • Entry-level roles require 2-3 years experience

Case C: Priya – Private University Graduate (Underemployment Story)

Profile

  • SIM-RMIT Business degree, Class of 2024
  • GPA: 3.2/5.0
  • 2 internships (local companies)
  • Strong communication skills, moderate Excel proficiency

Outcome

  • 9 months to secure full-time role
  • Starting salary: SGD 3,800/month (below median)
  • Role: Sales coordinator (not related to degree)
  • 6-month contract, unsure about conversion

Reality Check

  • Private university stigma despite good academics
  • Employers prefer autonomous university graduates
  • Forced to accept below-market offers
  • Job mismatch: overqualified but underpaid

Case D: Ahmad – Polytechnic Graduate Who Upskilled (Alternative Success)

Profile

  • Singapore Polytechnic Diploma in IT, Class of 2024
  • Median diploma holder salary: SGD 2,900
  • Completed 6 online certifications (AWS, Google Analytics, Tableau)
  • Built 3 personal projects during NS

Outcome

  • Hired via Oracle Apprenticeship Programme
  • 12-month structured training + on-the-job experience
  • Starting: SGD 3,200/month during apprenticeship
  • Offered permanent role at SGD 5,000/month post-completion
  • Plans to pursue part-time degree while working

Key Insight

  • Leveraged alternative pathways (apprenticeships)
  • Continuous upskilling bridged diploma-degree gap
  • Avoided student debt while gaining work experience
  • Will earn degree in 3 years part-time vs 4 years full-time

3. Root Causes: Why Singapore Graduates Struggle

3.1 Demand-Supply Mismatch

The Oversupply Problem

  • 80%+ of Singapore residents under 30 hold diplomas or degrees
  • Yet PMET roles don’t grow proportionally
  • Result: Too many graduates chasing limited positions

The Wrong Skills Problem

  • Universities produce generalists; employers want specialists
  • Business admin teaches theory; employers need Excel/SQL/Python
  • Arts/humanities teach critical thinking; employers want data literacy

3.2 Economic Headwinds

Global Uncertainty (2024-2025)

  • Tech sector downturn affecting hiring in Singapore’s key industry
  • Geopolitical tensions disrupting supply chains and investment
  • AI enabling companies to “do more with less”—fewer entry-level roles needed

Local Market Realities

  • 66% of employers cite “lack of skilled candidates” as top challenge
  • 38% face fierce competition for talent (but only for specific skills)
  • Companies prefer experienced hires over fresh graduates with higher salary expectations

3.3 The Credential Inflation Trap

When Everyone Has a Degree, No One Does

  • Degree no longer guarantees employment
  • Employers add requirements: internships, certifications, portfolios, 2+ years experience
  • Fresh graduates compete against mid-career professionals for entry-level roles

3.4 Structural Education Gaps

What Universities Don’t Teach

  • Industry-standard tools (Salesforce, SAP, advanced Excel, SQL)
  • Practical project management and client communication
  • How to build portfolios that demonstrate competence
  • Networking and personal branding

The Internship Quality Crisis

  • Many internships = administrative busywork, coffee runs
  • Students graduate with “internship experience” but no real skills
  • Employers dismiss these as resume fillers

4. Short-Term Solutions (0-18 Months)

4.1 For Current Students & Fresh Graduates

Priority Action 1: Build Technical Skills IMMEDIATELY

If you’re in business/humanities:

  • Week 1-4: Learn Excel (pivot tables, VLOOKUP, macros)
  • Week 5-8: Learn SQL basics (free course: Khan Academy, Codecademy)
  • Week 9-12: Learn Python for data analysis (pandas, matplotlib)
  • Week 13-16: Build 2-3 portfolio projects using real datasets

If you’re in STEM but not tech:

  • Learn Python/R for data visualization
  • Get AWS Cloud Practitioner certification (SGD 100, 2 weeks study)
  • Build GitHub profile with projects

Priority Action 2: Secure MEANINGFUL Internships

Red flags to avoid:

  • “Administrative duties” or “general support”
  • No clear deliverables or projects
  • Company has no structured internship program

Green flags to pursue:

  • Project-based work with tangible outcomes
  • Mentorship from senior staff
  • Use of industry tools
  • Possibility of return offer

Priority Action 3: Leverage Alternative Pathways

Explore these programs:

  1. SkillsFuture Work-Study Programmes: Earn while you learn, structured training
  2. Apprenticeships: Oracle, JPMorgan, GovTech (12-month structured training)
  3. Traineeships: IBF schemes for finance, IMDA for tech
  4. Contract-to-Permanent: Accept 12-month contracts with conversion potential

Priority Action 4: Apply Strategically, Not Desperately

Stop:

  • Mass-applying to 200+ generic roles
  • Using the same resume for all applications

Start:

  • Target 20-30 roles that fit your skills
  • Customize each application (research company, tailor resume)
  • Network: LinkedIn outreach to hiring managers (not HR)
  • Attend career fairs, industry events, alumni networking

4.2 For Universities

Immediate Curriculum Reforms

Mandate for ALL degrees:

  • 1 semester of practical technical skills (Excel, SQL, Python basics)
  • Capstone projects with real companies (not simulations)
  • Resume/portfolio building workshops in Year 1
  • Internship quality control: Reject companies offering admin work

Business schools specifically:

  • Replace 1-2 theory courses with: Business Analytics, Digital Marketing Tools, Financial Modeling
  • Partner with companies for real-world case competitions

Career Services Overhaul

Current reality: Career centers send generic job postings What’s needed:

  • 1-on-1 career coaching for all students (mandatory 3 sessions)
  • Alumni mentorship programs with structure
  • Employer partnerships for direct pipelines
  • Mock interviews with industry professionals (not career counselors)

4.3 For Employers

Rethink Entry-Level Hiring

The “2-3 years experience for entry-level” paradox must end:

  • Create true entry-level roles (0-1 year experience required)
  • Invest in 3-6 month training programs for fresh hires
  • Value internships at your company over “years of experience”

Adopt Apprenticeship Models

What works:

  • 12-month structured programs (Oracle, JPMorgan models)
  • 70% on-the-job, 30% classroom training
  • Clear pathway to permanent employment
  • Competitive apprentice salary (SGD 3,000-3,500/month)

Skills-Based Hiring

Replace:

  • “Must have 3 years experience”
  • “Prefer top-tier university graduates”

With:

  • “Complete this take-home project”
  • “Demonstrate these 5 skills through portfolio”

5. Long-Term Solutions (2-5 Years)

5.1 Reimagine Higher Education

The Work-Study Model Must Become Mainstream

Singapore’s goal: 12% of each cohort in work-study programmes by 2025

What this means:

  • Students spend 50% of degree in actual paid work
  • Earn while learning (SGD 2,000-2,500/month)
  • Graduate with degree + 2 years real experience
  • Zero employment gap post-graduation

Example: Netherlands’ Maastricht University Model

  • Students spend half time in class, half at companies
  • Real projects with real stakes
  • Graduate with job offers in hand
  • Singapore should adopt nationwide

Modular Credentials Over 4-Year Degrees

The future:

  • Stackable certifications (6-month intensive modules)
  • Earn while learning part-time
  • “Degree” = collection of validated competencies
  • Continuous upskilling without career breaks

5.2 Close the Polytechnic-University Gap

Current reality: SGD 1,600/month gap between poly and university graduates This is unsustainable for social cohesion

Solution 1: Strengthen Polytechnic-to-Degree Pathways

  • Expand Work-Study Diploma programs (from 1,200 to 1,500+ places/year)
  • More credit exemptions for poly graduates entering universities
  • Part-time degree options for working poly graduates

Solution 2: Elevate Polytechnic Status

  • Germany’s dual-education model: Polytechnics = respected career path
  • Not “second choice” but equal alternative
  • Marketing: “Earn SGD 2,900 at 20 vs SGD 4,500 at 23 = same lifetime earnings”

Solution 3: Accelerated Pathways for Technicians

  • APT(M) program for manufacturing: Poly grads → assistant engineer roles
  • Expand to other sectors (tech, healthcare, logistics)
  • Clear progression: Technician → Assistant Engineer → Engineer (5-7 years)

5.3 Industry Transformation

Mandate Corporate Responsibility

Policy proposals:

  1. Graduate Hiring Quotas: Companies >100 employees must maintain 5% fresh graduate workforce
  2. Apprenticeship Tax Credits: 50% salary subsidy for 12-month apprenticeships
  3. Skills Levy: Companies pay into fund for graduate upskilling programs

Build Industry-Education Bridges

What’s needed:

  • Faculty secondments: Professors work in industry 6 months/year
  • Industry practitioners teach 20% of courses
  • Real client projects in every capstone course
  • Company-sponsored labs/facilities in universities

5.4 Government Policy Reforms

Rethink “Degree Premium”

Current problem: Public sector pays degree holders 30-40% more than diploma holders for same work

Solution:

  • Transition to skills-based pay bands
  • Performance-based progression, not credential-based
  • Lead by example: Show private sector that skills > credentials

Expand SkillsFuture Beyond Mid-Career

Current: SkillsFuture Credit focuses on 40+ workers

Needed:

  • SGD 5,000 credit for fresh graduates to upskill in first 2 years
  • Subsidized certifications: AWS, Google, Microsoft, Salesforce
  • Career transition support for mismatched graduates

Create “Gap Year” Upskilling Programs

For unemployed graduates:

  • Government-funded 6-month intensive bootcamps
  • Coding, data analytics, digital marketing, cybersecurity
  • Guaranteed job placement partner companies
  • SGD 1,500/month training allowance

6. Singapore-Specific Impacts & Implications

6.1 Social Cohesion Risks

The “Educated but Underemployed” Crisis

  • Growing frustration among graduates earning less than expected
  • Degree inflation: “I need Master’s to get what Bachelor’s used to get”
  • Brain drain: Talented graduates leaving for overseas opportunities
  • Inter-generational tension: Boomers with O-Levels outearn Millennials with degrees

Income Inequality by Education Path

  • Law/CS graduates (SGD 7,000) vs Arts graduates (SGD 3,800) = 84% gap
  • This exceeds the poly-university gap and threatens meritocracy narrative
  • Risk: Degree choice at 18 determines lifetime trajectory more than effort

6.2 Economic Competitiveness

Singapore’s Human Capital Paradox

  • Highly educated workforce but mismatched skills
  • Losing regional competitiveness to Malaysia (lower costs) and China (better tech skills)
  • Multinational companies hiring remote workers instead of local graduates

The AI Amplification Effect

  • AI tools replace entry-level tasks (data entry, basic analysis, copywriting)
  • Companies need fewer junior staff, more senior specialists
  • 2025: Entry-level roles down 30%, mid-level roles flat, senior roles up 20%

6.3 Long-Term Workforce Implications

The “Lost Generation” Risk

  • Graduates unemployed 12+ months face permanent earnings reduction
  • Early career underemployment creates skill atrophy
  • By 30, gap between employed-at-23 vs unemployed-until-25 = 20% lifetime earnings

Demographic Crunch Opportunity

  • Singapore’s working-age population peaked in 2023
  • Labor shortage coming by 2030
  • Current graduates will have leverage—if they have right skills

7. Actionable Roadmap by Stakeholder

For Students (Starting Today)

Months 1-3: Skill Acquisition Sprint

  • Enroll in 2-3 online courses (Coursera, Udemy)
  • Focus: Excel advanced, SQL basics, Python/R for your field
  • Complete 1 portfolio project per month
  • Total cost: SGD 150-300

Months 4-6: Strategic Networking

  • Attend 2 industry events per month
  • LinkedIn: Connect with 5 professionals/week in target companies
  • Informational interviews: 2 per month
  • Join relevant professional associations

Months 7-12: Aggressive Job Search

  • Apply to 5-10 targeted roles per week (not 50 random ones)
  • Customize applications: Research company, tailor resume
  • Track: Application → Interview → Offer conversion rates
  • Adjust strategy based on data

For Universities (2025-2027 Roadmap)

Year 1 (2025): Quick Wins

  • Launch mandatory “Future of Work” course for all Year 1 students
  • Implement portfolio requirement for graduation
  • Audit internship partners: Drop companies offering admin work

Year 2 (2026): Curriculum Reform

  • Redesign 30% of courses to include practical tools
  • Launch industry-sponsored labs (e.g., Google Data Analytics Lab)
  • Require faculty to complete 100 hours industry work every 3 years

Year 3 (2027): Systemic Change

  • Transition 25% of programs to work-study model
  • Introduce micro-credentials (stackable certificates)
  • Measure success by employment outcomes, not research output

For Government (Policy Implementation Timeline)

2025 Q1-Q2: Immediate Interventions

  • Launch “Skills Gap Bootcamp” for unemployed graduates (pilot with 500 participants)
  • Expand apprenticeship subsidies to 50% salary reimbursement
  • Create Jobs-Skills Portal with real-time labor market data

2025 Q3-Q4: Structural Reforms

  • Mandate skills-based hiring in public sector
  • Introduce apprenticeship quotas for large employers
  • Expand SkillsFuture funding for fresh graduates

2026-2027: Long-Term Transformation

  • Achieve 12% of cohort in work-study programs
  • Launch modular degree pilots at 2 universities
  • Reform degree-diploma wage gap in public sector

For Employers (Immediate Actions)

Within 3 Months:

  • Review job descriptions: Remove “2-3 years experience” for entry roles
  • Design 6-month training program for fresh hires
  • Partner with 1-2 universities for internship pipelines

Within 6 Months:

  • Launch apprenticeship program (even if just 3-5 hires/year)
  • Implement skills-based hiring: Portfolio review before interviews
  • Create junior-mid-senior progression framework (clear 3-5 year path)

Within 12 Months:

  • Measure: Fresh graduate retention rate, performance vs experienced hires
  • Adjust: Training program based on data
  • Scale: Double apprenticeship intake if successful

8. Measuring Success: KPIs for 2026-2030

Employment Outcomes

  • Target: 92% employment rate within 6 months (vs current 87.1%)
  • Full-time permanent employment: 85% (vs current 79.5%)
  • Reduce unemployment to 5% (vs current 8.5%)

Skills Alignment

  • 80% of graduates have 3+ industry certifications at graduation
  • 90% complete 2+ meaningful internships (measured by employer survey)
  • 75% build public portfolios (GitHub, personal websites)

Wage Growth

  • Median salary increases to SGD 5,000 by 2027 (11% increase)
  • Close poly-university gap to SGD 1,200 (from SGD 1,600)
  • Reduce arts-CS gap to 50% (from 84%)

Alternative Pathways

  • 12% of cohort in work-study programs by 2025 (current: <5%)
  • 5,000+ apprenticeships annually by 2027 (current: ~2,000)
  • 30% of graduates pursue modular credentials vs traditional degrees by 2030

Conclusion: A Call to Urgent Action

Singapore faces a higher education crossroads in 2025. The social contract—study hard, get a degree, secure good job—is breaking down. University graduates earn more than ever but struggle to find employment. The diploma-degree gap persists despite policy interventions. Private university graduates face systematic disadvantage.

The paradox is clear: We have more educated youth than ever, but they lack the skills employers actually need.

This isn’t a crisis of intelligence or work ethic—it’s a crisis of misalignment between education and employment. The solutions exist: work-study programs, skills-based hiring, apprenticeships, modular credentials. Countries like Germany, Netherlands, and Switzerland prove these models work.

The question isn’t what to do—it’s whether we have the political will to do it.

Students must take ownership of their employability. Universities must prioritize outcomes over prestige. Employers must invest in fresh talent. Government must lead systemic reform.

The window is closing. By 2030, AI will have transformed 50% of entry-level jobs. The graduates struggling today will be mid-career professionals then—either thriving because we acted now, or permanently disadvantaged because we delayed.

Singapore’s future as a knowledge economy depends on solving this crisis. The data is clear. The solutions are proven. The time to act is now.


Case study compiled from 2024-2025 Graduate Employment Surveys, Ministry of Education data, SkillsFuture Singapore reports, and labor market analyses. All salary figures in SGD. Data current as of December 2025.