Singapore Polytechnic Graduates Face Job Market Challenges

Singapore’s polytechnic graduates in 2024 faced an increasingly complex job market, marked by a decline in full-time employment rates but an increase in median salaries. The latest Graduate Employment Survey (GES) highlights shifting employment patterns, reflecting broader economic changes and evolving industry demands. While fewer graduates secured full-time positions, those who did found themselves earning higher wages than their predecessors. These trends raise important questions about the future of polytechnic education, workforce readiness, and the strategies graduates must adopt to secure stable employment.

The employment rate of fresh polytechnic graduates securing full-time permanent jobs within six months of graduation dropped to 54.6% in 2024, down from nearly 60% in 2023 and 59% in 2022. This decline suggests that companies are becoming more selective in hiring, possibly due to increased automation, evolving job requirements, and economic uncertainty. The shift also highlights the growing preference among employers for job candidates with higher qualifications or specialized skills beyond a diploma.

Paradoxically, while full-time employment rates dropped, the median gross monthly salary for those in full-time permanent roles increased by $100, reaching $2,900 in 2024 compared to $2,800 in 2023. This salary increase suggests that employers are willing to pay more for graduates with the right expertise, particularly in fields with high demand for specialized skills.

Graduates from Health Sciences, Humanities and Social Sciences, and Information and Digital Technologies saw the highest salary increases. This reflects the ongoing demand for healthcare professionals, digital transformation specialists, and individuals trained in social services. The tech sector, in particular, has shown resilience, with companies continuing to seek talent in areas such as cybersecurity, data analytics, and artificial intelligence.

Beyond full-time employment, overall employment rates for polytechnic graduates also fell. In 2024, 87.5% of graduates in the labor force found jobs—whether permanent, freelance, or part-time—within six months of graduation or after completing national service. This figure represents a decline from 92.7% in 2023 and 91.8% in 2022.

The unemployment rate among fresh polytechnic graduates rose to 12.5% in 2024, up from 7.3% in 2023. This puts unemployment levels close to those observed during the peak of the COVID-19 pandemic in 2020 (12.6%), despite Singapore’s economic growth of 4% in 2024, a significant improvement from 1.2% in 2023.

1. Technological Advancements and Industry Evolution

As industries increasingly adopt AI, robotics, and digital transformation strategies, many traditional job roles are evolving or becoming obsolete. Polytechnic graduates must now possess a broader skill set, including digital literacy and adaptability, to remain competitive in the workforce.

Employers today are looking for candidates with practical experience, industry certifications, and interdisciplinary skills. To address this, polytechnics are integrating AI literacy into curricula and strengthening industry partnerships to provide real-world exposure and internships.

More companies are prioritizing university graduates for higher-paying roles, leaving polytechnic graduates with fewer opportunities. As a result, many diploma holders are opting to pursue further studies, such as a part-time or full-time degree, to enhance their career prospects.

While employment rates have declined, the increase in median salaries suggests that businesses are willing to pay more for skilled and qualified candidates. This reflects the shifting emphasis from quantity to quality in hiring practices. Graduates who actively upskill, obtain certifications, or specialize in high-demand fields stand a better chance of securing lucrative job opportunities.

1. Embracing Continuous Learning and Specialization

Graduates should invest in further education and professional development to enhance their employability. Specialized certifications in areas such as data science, project management, and cybersecurity can significantly improve job prospects.

Internships and apprenticeships are crucial stepping stones to securing full-time employment. Polytechnic graduates should actively seek out industry-related experience during their studies to gain practical skills and improve their resumes.

Being flexible and open to new industries or emerging job roles can improve employability. Graduates should explore roles in sectors experiencing growth, such as fintech, sustainability, and healthcare technology.

The declining full-time employment rates for polytechnic graduates in Singapore signal a shift in the job market that cannot be ignored. While fewer graduates are securing permanent positions, those who do are earning higher salaries, indicating a shift toward a skills-based economy. Polytechnic graduates must take proactive steps to upskill, gain relevant work experience, and adapt to industry trends to thrive in this evolving job landscape.