Singapore’s job market sends mixed signals to job-seekers

On the surface, the labour market appears stable: unemployment remains low, median wages are rising, and retrenchments have dipped slightly. However, statistics released by the Ministry of Manpower (MOM) regarding employment provides a more confusing story — and one that is only supported by new graduates and young professionals. The search for employment is longer, more uncertain, and increasingly defined by how much effort individuals are willing — or able — to invest to stay competitive.

In the Q1 of 2025, the number of retrenchments dropped slightly to 3,300, with 3,100 of those affecting full-time employees. The resident unemployment rate nudged upward to 3.1% in March, a marginal increase from 2.9% in December. By these measures, Singapore’s labour market isn’t faltering. 

While these numbers indicate stability, labour market entry appears more competitive. Among fresh graduates from autonomous universities, 87.1% secured employment within six months of graduation in 2024 — a dip from 89.6% the previous year. Full-time permanent employment fell by 4.6% to 79.5%. Furthermore, the proportion of graduates in part-time or temporary employment increased, with involuntary part-time employment doubling to 2.2%.

The trend is more pronounced among graduates from private education institutions. 74.8% of these graduates found jobs within six months — down from 83.2% from the 2022/2023 cohort — and fewer than half secured full-time, permanent roles. 

Hiring sentiment among employers has also shifted. While many firms were optimistic about expanding headcount and raising wages at the end of 2024, expectations cooled by March. Companies do not anticipate hiring or increasing salaries in the next quarter, likely due to a growing caution amid uncertain global economic conditions.

Still, the data doesn’t suggest widespread joblessness. According to Minister of State for Education Gan Siow Huang, about half of unemployed grads had already received job offers, with most preparing to start work soon, though one third of these individuals turned down the offers for better opportunities. The job search process may be lengthening, but not stalling entirely.

Jobseekers are responding to these shifts with greater efforts, with students taking on more work experience. At NUS Business School and SMU, more than 80% of students completed multiple internships in 2024.

There is, however, a silver lining for those who do secure employment. Wages continue to climb, with nominal total wages for full-time resident employees rising 5.6% in 2024. After accounting for inflation, real wage growth stood at 3.2%, up sharply from just 0.4% in 2023. Median salaries for Autonomous University graduates hit $4,500, while private education institution graduates in full-time roles saw earnings increase from $3400 to $3,500,. Polytechnic graduates who completed National Service had a median salary of $3,000.

Still, rising salaries do not negate the fact that the journey to employment is becoming longer and more demanding. For many young professionals, internships, extended job hunts, networking, multiple applications, delayed start dates, and interim part-time roles have become the norm — a far cry from the more linear career trajectories of previous generations. 

It’s a pattern that extends beyond Singapore. Around the world, fresh graduates are applying to hundreds of jobs without callbacks, while overall worker confidence in the future has begun to wane. While the economy may not be faltering, simply getting to the starting line now requires more initiative, preparation, and a lot more patience. Taken together, these trends reflect that the Singapore labour market that is evolving, not weakening, into one that necessitates an increased cost of employability.