Singapore Polytechnic Graduates Face Job Market Challenges

Challenges and Opportunities for Singapore's Polytechnic Graduates in 2024

The employment landscape for Singapore’s polytechnic graduates in 2024 presents a complex interplay of economic factors, sector-specific hiring trends, and evolving workforce priorities. While overall employment rates have declined, the median salary for full-time permanent employees has increased, highlighting both challenges and opportunities in the current job market. The latest Graduate Employment Survey (GES), released on January 13, 2025, provides insights into these trends, reflecting how fresh graduates are navigating an increasingly competitive and uncertain environment.

According to the GES, 54.6% of fresh polytechnic graduates secured full-time permanent positions in 2024, a notable decline from nearly 60% in 2023 and 59% in 2022. This decline in full-time employment signals a shift in the hiring patterns of companies, possibly due to industry-specific contractions and a cautious approach by employers. Despite this, the median gross monthly salary for graduates in full-time permanent jobs increased by $100 to reach $2,900 in 2024, suggesting that while job opportunities may be fewer, companies are willing to offer better compensation to attract and retain skilled employees.

Divergent Employment Outcomes Across Sectors

One of the key takeaways from the 2024 GES is the disparity in employment outcomes across different industries. While some fields have maintained stable hiring rates, others have seen significant declines due to economic fluctuations and shifting industry demands.

Graduates from health sciences, as well as humanities and social sciences, have continued to enjoy strong employment prospects, likely due to sustained demand for healthcare professionals and social service workers. In contrast, graduates from engineering and information and digital technologies have faced higher unemployment rates, reflecting the downturn in the tech industry and reduced hiring in engineering-related sectors.

The technology sector, in particular, has witnessed significant layoffs in 2023 and 2024, contributing to fewer job openings for fresh graduates in IT-related disciplines. Many companies have either paused hiring or implemented restructuring efforts to optimize costs, making it harder for new entrants to secure employment. This trend underscores the importance of adaptability and continuous upskilling for graduates looking to break into the tech industry.

Rising Unemployment Rates and Comparisons to Previous Years

The overall employment rate for polytechnic graduates—covering full-time, part-time, and temporary positions—stood at 87.5% in 2024, a decline from 92.7% in 2023. The unemployment rate among fresh polytechnic graduates rose from 7.3% in 2023 to 12.5% in 2024, marking a substantial increase in joblessness within this demographic. This figure is particularly concerning as it mirrors the 12.6% unemployment rate recorded during the peak of the COVID-19 pandemic in 2020, when hiring freezes and retrenchments were widespread. (straitstimes.com)

The higher unemployment rate in 2024 suggests that despite economic recovery, fresh graduates are facing structural challenges in securing stable employment. Some of the contributing factors include:

- Increased competition in the job market, with more graduates vying for fewer full-time positions.

- Economic uncertainties in key industries, such as technology and engineering, leading to cautious hiring.

- Changes in employer preferences, with companies prioritizing experienced hires over fresh graduates.

- A shift in graduate expectations, with some job seekers holding out for better salaries, work-life balance, or career progression opportunities.

Economic Context and Its Implications on Employment

Singapore's economy demonstrated resilience in 2024, growing at a rate of 4%, a significant improvement from 1.2% in 2023. This economic rebound was driven by recovery in consumer spending, an uptick in global trade, and government-led initiatives to support industries. However, despite the overall positive trajectory, employment growth did not keep pace, particularly for fresh graduates. (straitstimes.com)

The contrast between economic growth and employment stagnation can be attributed to companies' focus on productivity improvements and cost efficiency, rather than aggressive hiring. Businesses in high-tech industries have leaned towards automation, artificial intelligence, and outsourcing, reducing the need for entry-level hires. As a result, polytechnic graduates must enhance their skill sets to align with evolving industry needs.

Factors Influencing Employment Decisions of Graduates

Beyond economic conditions, individual choices and job market expectations have also played a role in employment outcomes. According to the GES, some fresh graduates declined full-time job offers due to concerns over work-life balance, job scope, or salary dissatisfaction. This reflects a broader shift in workforce priorities, where young professionals place greater emphasis on job satisfaction and career growth opportunities rather than merely securing immediate employment.

Additionally, a growing number of graduates have chosen to pursue further studies immediately after graduation. While this delays their entry into the workforce, it reflects a strategic move to enhance qualifications and improve long-term career prospects. This trend has also contributed to the decline in full-time employment figures, as more individuals opt for higher education pathways instead of seeking jobs immediately.

Strategies for Improving Employment Outcomes

To address these challenges, several key measures can be taken to enhance the employability of polytechnic graduates:

Stronger Industry-Academia Collaboration

Polytechnic institutions should strengthen partnerships with companies to ensure that course curricula remain relevant to market needs.

Internship and apprenticeship programs can provide students with hands-on experience, making them more attractive to employers.

Expansion of SkillsFuture Work-Study Programs

SkillsFuture initiatives have shown promising results in boosting employment and salary outcomes for polytechnic and ITE graduates.

Encouraging more graduates to participate in these programs can bridge the gap between education and employment.

Encouraging Lifelong Learning and Upskilling

Graduates should proactively acquire industry-relevant certifications and stay updated with evolving job requirements.

Fields such as data analytics, digital marketing, and sustainable technologies offer growth potential, and fresh graduates should consider diversifying their skill sets.

A Call to Action for Graduates and Employers

The employment landscape for Singapore’s polytechnic graduates in 2024 presents a nuanced picture of challenges and opportunities. While economic growth has improved, hiring trends have not fully recovered, leading to a decline in full-time employment rates. However, graduates who are proactive in upskilling, adaptable to changing industry needs, and open to alternative career pathways will find ways to navigate this evolving job market.

For businesses, it is essential to invest in talent development and explore innovative hiring strategies to attract young professionals. Meanwhile, educational institutions must continue refining their programs to ensure that graduates are equipped with the right skills to thrive in an increasingly competitive landscape. By fostering a culture of lifelong learning and adaptability, polytechnic graduates can secure fulfilling and resilient careers despite the uncertainties of the job market.

Shaun

Founder

With over a decade of expertise spanning investment advisory, investment banking analysis, oil trading, and financial advisory roles, RealisedGains is committed to empowering retail investors to achieve lasting financial well-being. By delivering meticulously curated investment insights and educational programs, RealisedGains equips individuals with the knowledge and tools to make sophisticated, informed financial decisions.

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Shaun

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