Declining graduate employment rates prompt stronger government, industry, and education sector collaboration

As Singapore’s fresh graduates struggle with a shrinking job market, the government is intensifying support measures to counter rising anxieties and employment mismatches.

Government Responds to Graduate Job Decline

Minister of State for Foreign Affairs and Trade and Industry, Gan Siow Huang, announced on July 9 that the Singapore government is closely monitoring the employment situation of fresh graduates amid a tightening job market. Speaking after an engagement session with polytechnic students, she acknowledged increasing anxiety among job seekers and emphasised that targeted efforts are underway.

Recent employment data reveals a downturn: only 79.5% of university graduates secured full-time employment in 2024, down from 84.1% in 2023. Polytechnic graduate outcomes also dropped to 54.6%, compared to around 60% the previous year. These figures highlight structural and cyclical shifts in the economy, including the rise of artificial intelligence (AI) and external pressures like US tariffs affecting global trade and business confidence.

Expanded Career Support and Guidance

Institutes of higher learning have stepped up efforts to support students through:

• Career coaching and guidance
• Upskilling courses and industry networking
• Regularly hosted job fairs

Government agencies such as Workforce Singapore and NTUC’s Employment and Employability Institute are collaborating closely with education partners to offer personalised support for graduates, especially in industries experiencing slower hiring.

AI, Curriculum, and Structural Mismatches

NTUC Assistant Secretary-General Patrick Tay stressed that a growing mismatch between graduate skills and market needs must be urgently addressed. “Institutions must become more agile in anticipating future skill demands, especially in a new age of AI,” he said, urging for early and ongoing career coaching, alongside curriculum modernisation.

Minister Gan added that the Ministry of Education is currently studying the deeper integration of AI into school programs to ensure graduates are equipped for evolving industry needs.

Real Struggles and Future Plans

Graduate voices illustrate the difficulties firsthand. Nur Farisya Fahrurazi, 20, who recently completed a diploma in Business Studies, said she struggled to find marketing jobs due to her lack of a degree and experience. She eventually accepted a two-year administrative role, facilitated by her polytechnic’s career counsellor.

In contrast, Shaun Tan, another graduate, is less concerned for now. He plans to enter the social work sector in 2030 after completing national service and university studies. While confident about job availability in his field, he fears salaries may not keep pace with inflation.

Policymakers Call for Bold Measures

To avoid long-term underemployment, experts are urging for targeted initiatives akin to the SGUnited Traineeships introduced during the COVID-19 crisis. These would provide:

• Structured internships
• Quality job-matching platforms
• Clearly defined career pathways

The Singapore Economic Resilience Taskforce, chaired by Deputy Prime Minister Gan Kim Yong, is also evaluating new strategies to protect and enhance job opportunities for young workers amid economic uncertainties.

The employment landscape for fresh graduates in Singapore reflects deeper global shifts, from technology disruptions to trade tensions. As the government, educational institutions, and labour leaders join forces to strengthen support systems, the evolving strategies offer a blueprint for resilience not only in Singapore but across Southeast Asia, where similar challenges loom. For Indonesians and others in the region, this situation underscores the urgent need to future-proof education and workforce policies against rapid change.

Sources: Straits Times (2025) , HRWorld (2025)

Keywords: Graduate Employment, AI Impact, Singapore Economy, Polytechnic Jobs, Education Reform, Workforce Support