1,700 more unemployed graduates in 2025 cohort led to increased sense of job competition: Tan See Leng

SINGAPORE: Fresh graduates in 2025 are feeling stronger competition in their job searches partly because more in their cohort are entering the job market immediately after graduation, Manpower Minister Tan See Leng said on Tuesday (Sep 23).

There were about 2,400 more fresh graduates who had entered the labour force instead of taking a break or pursuing further studies as of June, compared to the same time last year, he told parliament.

"Even though there were about 700 more fresh graduates who were employed, the additional 1,700 active jobseekers who had yet to find a job may have contributed to a stronger sense of job competition among fresh graduates," he said.

He also listed the external factors that have added to anxieties – economic headwinds from increased trade tensions, the imposition of tariffs and geopolitical conflict, and growing concerns over artificial intelligence taking over entry-level jobs.

Dr Tan displayed a chart that showed the increase in the number of fresh graduates who had entered the labour force and were looking for jobs as of this June, compared to last June. This led to the increase in the number of fresh graduates who are unemployed.

Statistics show that employment rates for fresh graduates have actually improved from 2024 to 2025, he said.

As of this June, around 9,300 or 52 per cent of graduates from the 2025 cohort were employed.

This is 700 more than the roughly 8,600 or 48 per cent of graduates from the 2024 cohort employed at the same time last year.

The proportion of graduates in permanent employment has also improved from about 37 per cent in 2024 to 44 per cent in 2025.

"These figures will improve further as many graduates were only beginning their job searches in June," said Dr Tan, pointing to the employment rate of the 2024 cohort, which rose from the previously mentioned 48 per cent last June to 88 per cent this June.

"Even though graduate employment rates remain stable, we need to support the additional influx of graduates looking for work," he said.

Dr Tan was responding to questions filed by 17 parliamentarians from both sides of the House about the jobs situation for fresh graduates and a new government-funded traineeship programme for graduates.

This comes amid growing job anxieties among young graduates.

A CNA straw poll of more than 100 recent graduates in August found that intense competition from their peers was the top concern, followed by the limited job openings and low starting salaries.

Singapore's latest quarterly labour market report recorded a higher unemployment rate for those below the age of 30. It rose from 5.4 per cent in March to 5.7 per cent in June.

CNA has asked MOM how the labour statistics distinguish between graduates who are outside the labour force and graduates who are unemployed.

GRADUATE INDUSTRY TRAINEESHIPS

MPs raised several questions on the Graduate Industry Traineeships programme, which will offer up to 800 trainee spots in the private and public sectors from October.

The traineeships will last for between three and six months and pay a monthly allowance of S$1,800 (US$1,400) to S$2,400, with 70 per cent funded by the government.

CNA previously reported that some fresh graduates felt uncertain about the new traineeship scheme and how some participants in a similar previous scheme, the SGUnited Traineeship, felt that such programmes could do more to add value to their careers.

The SGUnited Traineeship was launched during the COVID-19 pandemic and was meant to increase capacity to reduce graduate unemployment during an economic crisis.

On this, Dr Tan said the latest graduate traineeship scheme builds on the positive result seen with the SGUnited programme, but noted that their economic contexts differ.

The Graduate Industry Traineeships scheme "focuses on the provision of a limited number of quality traineeship opportunities to provide reassurance to graduates", said Dr Tan.

Hence, its outcomes may not mirror those of the SGUnited Traineeship, he said.

Dr Tan said the initial number of traineeships – 500 in the private sector and 300 in the public sector – is meant to safeguard their quality and manage the risk of "crowding out" full-time positions that might be offered to fresh graduates.

The minister also pointed to the 30,000 entry-level jobs available for fresh graduates, which he had mentioned at the release of labour market figures for the second quarter earlier this month.

"I hope you can understand why we have very tightly ensured that this programme does not end up cannibalising (these job opportunities)," he said.

The government is prepared to increase traineeship places and extend the programme if economic conditions worsen, or if there is demand due to good outcomes for graduates and employers, he added.

The maximum allowance of S$2,400 was capped at about half the median starting salary of fresh graduates from autonomous universities.

This was calibrated to ensure that trainees continue to prioritise full-time roles, said Dr Tan.

"We also capped the duration of traineeships at six months to encourage employers to seriously consider the trainees for a higher-paying full-time job at the end of the traineeship," he said.

The traineeships are not meant to be an "employment subsidy", and companies that see the value of trainees should offer them full-time positions, he added.

Workforce Singapore (WSG) will "strongly encourage" host organisations to convert trainees to full-time employees where possible, said Dr Tan.

To support conversion before the end of a traineeship, the government will continue to provide allowance subsidies for host organisations that convert trainees who have completed at least three months of their traineeship.

"LEVEL UP THE PLAYING FIELD"

To make sure the traineeships support the employability of graduates in the long term, Dr Tan said leading organisations have also been identified for the programme.

"These companies come from key growth sectors such as financial services and information and communications, which offer a large number of good jobs," he said.

"They have a good track record of hiring and training locals, and are committed to offer a good mix of traineeship roles for graduates from all of our educational institutions."

Dr Tan said some companies that have stepped forward include DBS, Grab, Micron, OCBC, Sea, Sembcorp, Standard Chartered and ST Engineering.

The traineeships include roles in data analysis, robotic process automations, research and development, policy and strategy, marketing, human resources and business development.

WSG will regularly review traineeship development plans containing learning outcomes submitted by the host organisations, and conduct check-ins with trainees.

"These structured traineeships with leading companies will position our trainees in good stead for jobs and for roles beyond or within the host organisations," said Dr Tan.

MP Gerald Giam (WP-Aljunied) asked how the Manpower Ministry will ensure that high-achieving candidates who are likely to secure jobs on their own will not be disproportionately favoured, while those with weaker credentials are left out.

Dr Tan said his sense was that candidates with better grades and soft skills, and more industry experience would already have been able to secure full-time jobs.

He said the government was trying to "level up the playing field" for graduates who may not have had the opportunity for such industry experience, perhaps because they had other responsibilities while studying in institutes of higher learning.

IMPACT ON MID-CAREER WORKERS

The minister added that the graduate traineeships are designed to mitigate the risk of displacing existing employees, including mid-career workers.

"We have carefully selected host organisations that actively participate in workforce development efforts, including MOM-WSG programmes that support mid-career workers," he said.

WSG will conduct checks on host companies' recent retrenchment activities to ensure that traineeship roles are not similar to those of affected workers, said Dr Tan.

The traineeship allowance is also calibrated to be lower than what host organisations can receive for mature individuals on attachment under the Mid-Career Pathways Programme, he said.