Job Market: Why Your First Job Search is So Tough

The disconnect stems from a confluence of factors. A key driver is a shift in graduate behaviour; with economic uncertainty looming, fewer are opting for immediate postgraduate studies, choosing instead to enter the workforce and begin earning. This has resulted in a larger-than-usual supply of candidates flooding the entry-level market, all vying for a pool of openings that has not expanded at the same pace. This heightened competition means that while a job may be available, securing a quality, full-time permanent role that aligns with one's qualifications and aspirations requires a more protracted and demanding search. In fact, while the overall employment rate is high, the proportion of graduates in full-time permanent roles dipped slightly to 84.1 percent in 2023, with more taking up freelance or part-time work.

This environment has fundamentally changed the job search dynamic. Graduates now submit dozens, sometimes hundreds, of applications, facing longer waiting times and more rigorous interview processes. The psychological toll of this extended search, coupled with the pressure to secure a role quickly, contributes significantly to the sense of unease, even as the overarching employment data remains positive. It's a clear case where the macroeconomic picture fails to capture the micro-level struggles of the individual job hunter.

Conversely, industries more exposed to global headwinds are exhibiting hiring caution. The technology sector, once a beacon for high salaries and rapid hiring, has seen a significant cooling. While retrenchments in the Information & Communications sector have moderated from their 2023 peak, hiring remains selective, focused on highly specialised roles in AI, cybersecurity, and cloud computing rather than the broad-based hiring sprees of previous years. The job vacancy-to-unemployed person ratio has tightened, indicating that employers are becoming far more discerning. Similarly, outward-oriented sectors like manufacturing and professional services are registering slower recruitment rates, reflecting cautious business sentiment.

This sectoral bifurcation means a graduate's immediate career prospects are now heavily influenced by their field of study. The 2023 GES data starkly illustrates this: graduates from Information & Digital Technologies still command the highest median starting salary at SGD 5,500, but this is a slight dip from the previous year. In contrast, those from Health Sciences saw their median salary rise to SGD 3,950, reflecting strong sectoral demand. This variance forces graduates from slower-growing fields to pivot their skills or recalibrate their expectations to find a foothold in a more discerning market.

This economic reality forces difficult choices. The ability to build an emergency fund, start investing, or save for a major life goal like a home down payment is constrained from the very first paycheck. The classic "save 20% of your income" advice becomes a daunting task when a significant portion of a starting salary is consumed by transportation, food, and rising rental costs, with the median rent for a single room in an HDB flat now exceeding SGD 800-900 per month in many areas.

This environment necessitates a more strategic and disciplined approach to personal finance from day one. It is no longer just about landing a job, but about landing a job with a career trajectory that can outpace inflation. It also underscores the critical importance of financial literacy. New graduates must learn to budget meticulously, manage their cash flow effectively, and understand the basics of investing to make their limited initial earnings work harder for them in a high-cost environment.

For the individual graduate, the path forward requires a mindset of proactive adaptation. The most valuable asset is not a static degree but the ability to learn and apply new, in-demand skills. The data points to a clear demand for professionals who can operate at the intersection of their core discipline and technology. A business graduate who understands data visualization tools like Tableau, a communications major proficient in SEO and Google Analytics, or an engineer certified in cloud platforms like AWS will possess a significant competitive advantage. This commitment to continuous upskilling is no longer optional.

Ultimately, the challenge for Singapore's new workforce entrants is to look beyond the immediate job search and build a foundation for long-term career resilience. This involves a strategic focus on high-growth sectors, a commitment to acquiring tech-adjacent competencies, and the cultivation of a strong professional network. The first job is a starting point, but in this new economic climate, the journey of building a financially secure career will be a marathon of constant learning, strategic pivoting, and relentless adaptation.