Why Your Job Hunt Might Feel Worse Now

Singapore's fresh graduates are navigating a job market that feels increasingly challenging, a sentiment exacerbated by a notable shift in post-graduation pathways. While official statistics suggest stable or even improved employment rates, a surge in the number of graduates immediately entering the workforce, rather than pursuing further studies or taking a break, has intensified perceived competition. This phenomenon, highlighted by Manpower Minister Tan See Leng, saw approximately 2,400 more fresh graduates entering the labour force as of June, compared to the previous year, contributing to an additional 1,700 active jobseekers who had yet to secure employment.

This increased influx of jobseekers, even amidst a slight improvement in the overall employment figures for graduates, creates a palpable sense of unease among the 2025 cohort. The official data indicates that 52% of the 2025 cohort were employed by June, an increase from 48% in the 2024 cohort at the same juncture. However, the sheer volume of new entrants means that even with more jobs being secured, the individual experience is one of heightened rivalry for available positions.

The Dynamics of a Shifting Job Search Landscape

The anxieties felt by young graduates extend beyond immediate competition, encompassing a confluence of external economic pressures. Geopolitical conflicts, rising trade tensions, and the imposition of tariffs cast a shadow over global economic stability, inevitably impacting Singapore's export-oriented economy and, by extension, its job market. These macroeconomic headwinds contribute to a more conservative hiring environment, particularly for entry-level roles.

Adding to this complexity is the accelerating concern over artificial intelligence (AI) and automation potentially displacing entry-level positions. Graduates are increasingly aware that the foundational skills once sufficient for many starter jobs may now be augmented or even replaced by AI, necessitating a re-evaluation of career readiness and skill sets. This technological disruption introduces an element of uncertainty, compelling graduates to seek roles that offer more robust long-term prospects.

The proportion of graduates in permanent employment has also shown a modest improvement, rising from 37% in 2024 to 44% in 2025. While positive, this still leaves a significant portion of graduates in non-permanent roles, which can include contract work, temporary positions, or part-time employment, contributing to a sense of instability. The journey from graduation to a stable career path appears to be lengthening for many, as initial roles may not always align with long-term aspirations.

Government Initiatives and Their Efficacy

In response to these growing job anxieties, the Singaporean government has rolled out initiatives such as the Graduate Industry Traineeships program. This scheme aims to provide up to 800 trainee spots across both private and public sectors, offering a bridge for graduates into relevant industries. The traineeships, lasting between three and six months, provide a monthly allowance ranging from SGD1,800 to SGD2,400, with a substantial 70% government funding.

However, the efficacy of such programs is often met with mixed reactions from the graduate community. Past iterations, like the SGUnited Traineeship during the COVID-19 pandemic, demonstrated varying degrees of success in converting trainees into full-time employees. The current program, while carefully designed to safeguard quality and prevent the "crowding out" of full-time positions, still faces the challenge of ensuring these opportunities translate into meaningful career progression rather than temporary placements.

The design of these traineeships, including the capped allowance and duration, is specifically calibrated to encourage graduates to prioritize full-time employment while also incentivizing employers to convert trainees into permanent staff. Workforce Singapore (WSG) actively encourages host organizations to facilitate these conversions, even providing allowance subsidies for companies that retain trainees after three months. This strategic approach aims to balance immediate support with long-term career development.

Broader Economic Indicators and the Graduate Predicament

Singapore's overall labour market report reinforces the graduate predicament, with the unemployment rate for those below 30 years old rising from 5.4% in March to 5.7% in June. This trend indicates that while employment figures for older, more experienced workers may remain robust, the younger segment of the workforce is experiencing increased friction in securing stable employment. This demographic-specific increase in unemployment is a critical indicator of the unique challenges facing fresh graduates.

The government maintains that there are still approximately 30,000 entry-level jobs available for fresh graduates. The challenge, therefore, lies not just in the absolute number of jobs but in the match between graduate skills and industry demands, as well as the perceived quality and long-term viability of these positions. Many graduates are seeking roles that offer career growth, competitive remuneration, and a clear developmental trajectory, which may not always be readily available in the current market.

The selection of host organizations for the traineeship program focuses on key growth sectors like financial services and information and communications, industries known for offering a substantial number of quality jobs. This strategic targeting aims to ensure that the traineeships are not just stop-gap measures but provide exposure to dynamic fields with genuine future potential. Regular reviews of traineeship development plans and check-ins with trainees are also implemented to ensure learning outcomes are met and career support is provided.

The Psychological Toll of a Competitive Market

Beyond the statistics, the heightened competition in the job market is taking a psychological toll on fresh graduates. A recent straw poll of over 100 recent graduates conducted by CNA in August revealed that intense competition from peers was their primary concern, overshadowing issues like limited job openings and low starting salaries. This suggests that the emotional and mental burden of the job search is significant, impacting self-esteem and future outlook.

This psychological impact is further compounded by the perceived pressure to secure a "good" job immediately after graduation, a common expectation in Singapore's highly competitive educational and professional landscape. The increased number of peers actively seeking employment intensifies this pressure, as graduates constantly compare their progress and successes. The cumulative effect can lead to burnout, anxiety, and a diminished sense of professional confidence, even for highly capable individuals.

​The current economic climate demands that graduates proactively refine their skill sets, focusing on areas less susceptible to automation and more aligned with emerging industry needs. This includes developing strong analytical capabilities, digital literacy, and soft skills like adaptability, problem-solving, and communication, which are increasingly valued in a dynamic work environment. Furthermore, graduates should consider exploring diverse career pathways, including entrepreneurship or roles in less traditional sectors, to broaden their opportunities. The government's continued focus on quality traineeships in growth sectors offers a vital stepping stone, but ultimate success will depend on how effectively graduates leverage these opportunities and continually adapt to the evolving demands of the Singaporean 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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Analyst, Trader

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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