Executive Summary
Singapore’s graduate employment landscape is experiencing a profound transformation driven by artificial intelligence (AI) and automation. While overall employment rates remain relatively stable, the nature of entry-level work is fundamentally changing. This case study examines the current state of graduate employment in Singapore, analyzes AI’s disruption of traditional career pathways, evaluates the outlook for various sectors, and proposes comprehensive solutions for graduates, educational institutions, and policymakers.
1. Current Graduate Employment Landscape in Singapore
1.1 Employment Statistics (2025)
As of 2025, Singapore’s graduate employment picture presents a nuanced view. The employment rate for fresh resident graduates reached 51.9% as of June 2025, representing an improvement from the previous cohort’s 47.9%. However, this figure only captures employment status approximately six months after graduation, with many graduates securing positions within the first year.
| Graduate Type | Employment Rate | Median Monthly Salary |
| University Graduates | 87.1% | SGD 4,500 |
| Polytechnic Graduates | 88% | SGD 2,900 – 3,000 |
| Private Education Graduates | 74.8% | Varies by program |
1.2 Top-Paying Degree Programs
The highest-earning degree programs in Singapore reflect the market’s demand for specialized technical and professional skills. Law degrees from NUS command the highest starting salaries at SGD 6,999, though this represents a decrease from previous years. Information security and software engineering programs from SIT follow closely, with median salaries of SGD 5,392 and SGD 5,131 respectively.
2. AI’s Impact on Entry-Level Positions
2.1 The Transformation of Entry-Level Work
Artificial intelligence is fundamentally reshaping entry-level employment in Singapore. According to the World Economic Forum’s Future of Jobs Report 2025, 40% of employers globally expect to reduce staff where AI can automate tasks. In Singapore, approximately 77% of employed workers are highly exposed to AI—significantly higher than the global average for emerging markets (40%) and advanced economies (60%).
However, high exposure to AI does not automatically translate to job displacement. Of Singapore’s highly exposed workers, roughly half (38.9% of total employment) occupy roles with high AI complementarity, where AI enhances productivity rather than replacing workers. The other half (38.6% of total employment) face higher substitution risk, particularly in routine, rules-based tasks.
2.2 Sectors Most Affected
Technology and Software Engineering
The technology sector has experienced the most dramatic transformation. Over the past three years, the number of fresh graduates hired by major tech companies globally declined by more than 50%. Tasks once assigned to junior developers—debugging, testing, and routine software maintenance—are increasingly automated. Entry-level tech hiring has dropped from 90% of all hires five years ago to less than 5% today, according to recruitment firms operating in Singapore.
Finance and Banking
Financial services are experiencing rapid AI adoption, particularly in algorithmic trading, risk management, and regulatory compliance. While this sector still offers competitive salaries for AI-skilled professionals (SGD 250,000+ for senior positions), entry-level analyst roles are being consolidated as AI handles data processing, report generation, and preliminary analysis.
Data Entry and Administrative Roles
Traditional administrative entry-level positions—data entry, basic accounting checks, simple customer queries, and manual reporting—are among the most vulnerable to automation. These roles are rapidly being replaced by AI-powered systems that can perform these tasks more quickly and accurately.
2.3 Changing Expectations for New Graduates
Employers now expect fresh graduates to possess higher-level skills than previous cohorts. Companies increasingly demand that entry-level candidates can manage projects, lead sales initiatives, understand algorithms, and troubleshoot complex automated systems. Furthermore, graduates using AI tools are often expected to increase their output by 70% compared to non-AI-assisted workers, creating pressure for continuous upskilling beyond standard curriculum.
3. Graduate Careers and Sectors Still Flourishing
3.1 High-Demand Professional Fields
Healthcare and Mental Health Services
The healthcare sector continues to show robust growth, particularly in mental health services. Mental health counselors are projected to experience 18% growth from 2022 to 2032, with approximately 42,000 annual openings globally. In Singapore, the health and social services sector had the highest number of job vacancies as of 2025, driven by an aging population and increased awareness of mental health issues.
Legal Services
Law remains one of the highest-paying fields for graduates, with NUS law graduates earning median salaries of SGD 6,999. The legal profession continues to require human judgment, advocacy skills, and nuanced interpretation that AI cannot replicate. Notably, law school applications in Singapore and globally have surged, with the 2024-2025 admissions cycle seeing an 18% increase in applicants—the highest volume in over a decade.
AI-Related Specializations
Paradoxically, AI is creating substantial demand for AI-specialized roles. Singapore aims to triple its AI workforce to 15,000 practitioners, supported by a SGD 25 billion investment through the Research, Innovation and Enterprise 2025 plan. AI professionals in Singapore command median annual salaries of SGD 133,300—significantly above the national median of SGD 69,600. Entry-level AI positions start at SGD 80,000, while senior specialists can earn SGD 200,000+.
3.2 Emerging AI-Created Roles
New job categories that didn’t exist five years ago are now in high demand:
| Role | Salary Range (SGD) | Key Function |
| Prompt Engineer | 100,000 – 140,000 | Optimize AI model interactions |
| MLOps Engineer | 110,000 – 150,000 | Deploy and monitor ML models |
| AI Ethics Specialist | 105,000 – 145,000 | Ensure responsible AI development |
| Computer Vision Engineer | 115,000 – 155,000 | Develop visual AI systems |
4. Outlook for 2026 and Beyond
4.1 Economic and Labor Market Projections
Singapore’s Ministry of Trade and Industry projects GDP growth of 1-3% for 2025, reflecting cautious optimism amid global uncertainties and trade tensions. The labor market outlook for 2026 shows mixed signals:
Total employment growth continues but at a moderated pace, with Q3 2025 showing increases primarily in financial and insurance services and health and social services.
Entry-level PMET (Professional, Managerial, Executive, and Technical) vacancies rose to 39,000 in September 2025, up from 26,000 a year earlier, indicating sustained demand for skilled graduates.
However, outward-facing sectors like information and communications experienced subdued growth amid global economic uncertainty.
Planned redundancies increased from 1.9% of firms in June 2025 to 2.3% in September 2025, reflecting continued economic caution.
4.2 Salary and Compensation Trends
Despite slower hiring, salaries for graduates continue to rise, driven by skills shortages in high-demand areas. The median monthly salary for university graduates reached SGD 4,500 in 2025, while polytechnic graduates earned SGD 2,900-3,000. This wage premium reflects economic restructuring and the adoption of AI and digitalization, which create specialized roles commanding higher compensation.
However, salary increases are becoming more conservative. Only 23% of employers plan to increase salaries by more than 5% in 2026, and 45% will award bonuses of exactly one month—indicating a shift toward cost management while maintaining fair compensation.
4.3 The Shift Toward Graduate Education
As entry-level opportunities contract, more graduates are pursuing advanced degrees. While specific enrollment data for Singapore wasn’t available in recent reports, global trends indicate increased interest in graduate programs, particularly in fields like law, AI, data science, and healthcare. Master’s programs in Singapore typically last 1-2 years and offer pathways to higher-paying, more specialized roles that are less vulnerable to AI disruption.
5. Solutions and Recommendations
5.1 For Graduates: Strategic Career Navigation
Develop AI Literacy
Understanding how to work with AI tools has become essential across all fields. Workers with AI skills earn a 56% wage premium in Singapore. Graduates should pursue AI training through SkillsFuture courses—over 105,000 people took up 137,000 AI-related training places in 2025 through the SkillsFuture Singapore platform, which offers approximately 1,600 AI-linked courses.
Focus on Uniquely Human Skills
Cultivate capabilities that AI cannot replicate: creativity, emotional intelligence, complex problem-solving, critical thinking, leadership, and interpersonal communication. These skills remain in high demand and are increasingly valued as AI handles routine tasks.
Target Growing Sectors
Prioritize fields with strong hiring demand: financial and insurance services, health and social services, professional services, and information and communications. Entry-level roles in these sectors are growing, with approximately 40% of entry-level vacancies concentrated in growth industries.
Consider Strategic Graduate Education
Pursue master’s degrees in high-demand fields such as AI, data science, cybersecurity, mental health counseling, or law. Singapore’s universities offer numerous specialized programs, many eligible for SkillsFuture funding and government subsidies. Graduate degrees can delay loan repayment, provide deeper specialization, and lead to higher lifetime earnings.
Embrace Flexible Pathways
Use alternative entry routes such as traineeships, internships, part-time roles, and temporary positions as stepping stones. These roles provide valuable experience, networking opportunities, and potential conversion to full-time employment. The government is launching new traineeship programs specifically for ITE, polytechnic, and university graduates to bridge the gap between education and employment.
5.2 For Educational Institutions: Curriculum Reform
Integrate AI Across All Programs
Make AI literacy a core competency across all degree programs, not just technical fields. Students in business, humanities, law, and healthcare need foundational understanding of AI applications in their domains.
Emphasize Experiential Learning
Expand partnerships with industry for internships, co-op programs, and project-based learning. Real-world experience working with AI tools and solving actual business problems makes graduates more employable.
Develop Hybrid Skill Sets
Create programs that combine technical skills with domain expertise—for example, AI + healthcare, AI + finance, AI + law. These “bilingual AI talents” (fluent in both AI and their professional field) are highly valued in Singapore’s transformation strategy.
Update Career Services
Bring career fairs directly into educational institutions earlier in the academic cycle. Provide students with guidance on emerging roles, salary expectations, and skill requirements in an AI-transformed job market.
5.3 For Employers: Workforce Development
Redesign Entry-Level Roles
Rather than eliminating entry-level positions entirely, redesign them to focus on human-AI collaboration. Create roles that leverage AI for routine tasks while developing graduates’ strategic thinking, client management, and innovation capabilities.
Invest in Structured Training Programs
Develop comprehensive onboarding and training programs that teach new graduates how to effectively use AI tools in their specific work context. Provide mentorship from experienced professionals who can guide AI-augmented workflows.
Partner with Education Providers
Collaborate with universities and polytechnics to shape curricula, provide input on required skills, and offer internship opportunities. Participate in government initiatives like the Skills Pathway programs for cloud computing and AI.
5.4 For Government and Policymakers
Expand SkillsFuture Programs
The SkillsFuture Level-Up Programme has demonstrated success in supporting mid-career transitions, with enhanced features including flexible learning options (part-time courses eligible for training allowances) and expanded course offerings from industry providers. Similar comprehensive support should be extended to recent graduates navigating the AI-disrupted entry-level market.
Scale Traineeship and Apprenticeship Programs
The new government-funded traineeship program for ITE, polytechnic, and university graduates should be scaled significantly. These programs provide crucial bridges between education and employment, especially during economic uncertainty. Successful models like JP Morgan’s traineeship program have demonstrated strong conversion rates to full-time employment.
Create AI Transition Support
Develop specific support mechanisms for workers displaced by AI, including career counseling, reskilling programs, and temporary income support during transitions. The current framework could be enhanced with AI-specific pathways given the technology’s rapid impact.
Monitor and Regulate AI Adoption
While supporting AI innovation, implement guardrails to ensure responsible adoption that considers social impacts. This includes monitoring displacement rates, supporting affected workers, and encouraging businesses to invest in workforce development alongside automation.
6. Conclusion
Singapore’s graduate career landscape is undergoing a fundamental transformation driven by AI and automation. While entry-level positions in traditional sectors are contracting, new opportunities are emerging in AI-related fields, healthcare, professional services, and roles requiring uniquely human capabilities.
The key to navigating this transition successfully lies in strategic adaptation by all stakeholders. Graduates must develop AI literacy while cultivating irreplaceable human skills. Educational institutions need to reform curricula to prepare students for an AI-augmented workplace. Employers should redesign roles to emphasize human-AI collaboration rather than wholesale automation. Policymakers must expand support programs to help workers transition and ensure inclusive economic growth.
Singapore’s comprehensive approach—combining substantial investment in AI development (SGD 25 billion through Research, Innovation and Enterprise 2025), extensive training programs (1,600 AI courses via SkillsFuture), new traineeship initiatives, and targeted support for mid-career transitions—positions the nation well to manage this disruption. However, continued vigilance, policy innovation, and stakeholder collaboration will be essential to ensure that the AI revolution creates broadly shared prosperity rather than deepening inequalities.
The future of work in Singapore will not be characterized by humans versus machines, but rather by those who adapt to work effectively with AI versus those who resist. By embracing this reality and implementing the solutions outlined in this case study, Singapore can turn the challenge of AI disruption into an opportunity for enhanced productivity, higher-quality jobs, and sustained economic competitiveness.
References
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3. Ministry of Education Singapore. (2025). Graduate Employment Survey 2024.
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5. World Economic Forum. (2025). Future of Jobs Report 2025.
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