Degree Dilemma: Singapore's Tough Job Market for Grads

This challenging environment marks a significant departure from the expectations of previous generations, where a degree from a local university was a near-guarantee of immediate, well-paying employment. A notable 26.7% of graduates from the 2024 and 2025 cohorts had yet to land a full-time role, and a quarter of this unemployed group were not confident about finding one within the next six months. The current landscape suggests that the "golden ticket" has, if not expired, certainly changed in nature. It no longer grants automatic entry but rather serves as a qualifying credential for a much more rigorous and demanding selection process. The new reality for graduates is one where academic achievement is merely the starting point of their professional journey, a journey that now requires a far more strategic and resilient approach from its very inception.

This crucible of competition has fundamentally altered the job search process, transforming it into an exhausting and often dispiriting marathon. Graduates report enduring onerous, multi-stage hiring processes that can include phone screenings, game-based assessments, AI-powered interviews, and extensive case studies before even reaching a face-to-face interview. This has raised the bar for what is considered a baseline effort, compelling students to go "above and beyond" by creating personal websites and elaborate portfolios just to stand a chance. The psychological toll of this process—navigating immense pressure with minimal feedback—is a significant, though unquantified, cost borne by the nation's young talent.

This disconnect is also fueled by a structural shift in the skills demanded by the modern economy. While a degree remains foundational, employers are increasingly prioritising a blend of technical and soft skills that are often not explicitly taught in traditional academic curricula. Industry experts now emphasize the critical importance of soft skills like empathy, critical thinking, and adaptability, alongside technical competencies such as AI literacy and data analytics. The rapid integration of artificial intelligence across industries is reshaping job functions, creating a scenario where employers are not just hiring for a specific role but for the potential to learn and adapt to future technological shifts. This reality places the onus on graduates to demonstrate not only what they know but also their capacity for continuous learning and practical problem-solving.

The impact extends beyond mere numbers; it affects the core aspirations of many young adults in Singapore. The ability to afford a down payment on an HDB flat, a cornerstone of Singaporean life, is directly tied to consistent income and CPF contributions. With the HDB resale price index climbing for 17 consecutive quarters and rising 2.3% in the second quarter of 2024 alone, a delayed career launch can push this milestone further into the future, creating a sense of falling behind. This financial uncertainty can also breed risk aversion, discouraging graduates from pursuing entrepreneurial ventures or investing for the long term, opting instead for the perceived safety of cash savings, which may not be sufficient to outpace inflation, which averaged 2.7% for the full year of 2024.

Simultaneously, gaining practical, real-world experience is paramount. Recruiters strongly advise graduates to remain active during their job search by taking on temporary or contract roles, as the proportion of graduates in such employment rose from 4% to 6% in 2024. More than half of graduates (55.2%) believe paid internships or traineeships would significantly help their job prospects. These roles should not be viewed as a detour but as strategic stepping stones. They offer not only an income and a way to avoid resume gaps but also provide crucial transferable skills and a tangible demonstration of work ethic and adaptability. These experiences can often lead directly to full-time offers, as they allow employers to assess a candidate's fit and potential in a low-risk setting.

For graduates and current students, the key is to begin career preparation long before tossing their graduation caps in the air. This means aggressively pursuing relevant internships, actively building a professional network, and taking ownership of their skills development, particularly in high-demand areas like IT, finance, and healthcare, which accounted for over 20,000 PMET vacancies as of mid-2024. They must learn to articulate not just their academic achievements but how their skills can provide tangible value to a prospective employer. For employers, providing clearer job descriptions and constructive feedback can help bridge the information gap, while a greater willingness to invest in training raw talent over seeking "perfect-fit" experienced hires can unlock a wider pool of capable individuals.

​The tough job market of 2025 is not an aberration but a preview of the future of work. Success will no longer be guaranteed by a degree certificate alone. It will be earned by those who are not only academically proficient but also commercially aware, digitally adept, and relentlessly proactive in navigating their own professional paths. The graduates who embrace this new reality, supplementing their formal education with practical experience and a robust network, will be the ones to thrive in Singapore's dynamic and ever-evolving economy.