Amid an uncertain outlook and spate of layoffs, fresh graduates are finding it tough in the job market
In interviews with fresh graduates, Ƶ TODAY finds that many are increasingly turning to short-term options such as internships, traineeships or contract positions in the absence of full-time offers.
(Illustration: Ƶ/Nurjannah Suhaimi)
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Since graduating in May this year with a degree in business analytics from a Singapore university, Ms Dhiya Diyana Irwan has sent out 50 job applications but has yet tosecure a full time role.
For the 23-year-old and many of her peers, the job market appears to be “really bad”. Competition is fierce, with more than 100 applicants often vying for the same roles, based on listings that she has seen on networking siteLinkedIn.
Even though many positions were labelled as entry-level, she has found that many employers are unwilling to hire a fresh graduate with limited or no professional experience.
“Graduating from a renowned university, I thought finding a job would be easier especially with my skills, eagerness and drive to learn,” Ms Dhiya said. She has a bachelor’s degree in business from Nanyang Technological University (NTU).
To tide through daily expenses for food and transport and not depend too much on her family while searching for a permanent job, Ms Dhiya has taken on part-time work as a personal assistant in a financial organisation.
With a flexible three- to four-day work week, she is able to slip in time to apply for full-time roles and attend interviews.
In Ƶ TODAY’s conversations with more than 10 fresh graduates from the class of 2024, they said that the job market looks bleak. All have spent aboutsix months searching for a full-time position.
Many are increasingly turning to short-term options such as internships, traineeships or contract positions in the absence of full-time offers.
For the cohort before theirs, the situation was similar. The most recentJoint Autonomous Universities Graduate Employment Survey released in February found that fewer graduates found work six months after leaving university in 2023 compared to the cohort in 2022.
The survey polled 10,900 fresh graduatesin the labour force from NTU and other autonomous universities here including the National University of Singapore (NUS), the Singapore Management University and the Singapore University of Social Sciences (SUSS).
Of those polled, 6.8 per cent were unemployed and still looking for a job, which was more than 2022’s figure of 3.6 per cent of the cohort.
As for the contract duration of the jobs graduates had found, the percentage of those in full-time permanent employment had dropped to 84.1 per cent in 2023, down from 87.5 per cent in 2022.
Mr Smith (not his real name) graduated in 2023 with a double degree in law and liberalarts from Yale-NUS College, but only just ended his search for a more “secure” role this August, more than a year after graduation.
The 27-year-olddid not want to be identified because he did not seek his current employer's permission to comment.
Recently, he began an extended internship at an international organisation in global security.
“You wouldn’t normally think that someone who has graduated for almost a year now would apply for an internship,” he said of the latest development.
Before this, he had taken on a series of three-month job contracts with different employersafter a gruelling search for permanent roles.
For some positions, he completed more than five rounds of tests and interviews only to be rejected. For other applications, there was just “radio silence”, he added.
Overall, graduate hiring in Singapore remains relatively robust despite some fluctuations, economists say.
While the latest graduate employment survey found that the proportion of graduates securing work within six months dipped slightly — from 93.8 percent in 2022 to 89.6 percent in 2023 — overall hiring remains relatively high, and median gross monthly graduate salaries inched up by 2.7 percent.
Ms Selena Ling, chief economist at OCBC, noted that the proportion of graduates who found employment within six months of taking their final exams remained in the high 80 per cent or low 90 per cent for the past three years.
However, recent graduates may face more difficulty securing full-time positions due to cyclical conditions that have likely made employers more cautious in hiring, she added.
In response to market conditions, some employers told Ƶ TODAY that they are increasingly favouring fixed-term contracts over full-time permanent ones, particularly for newer entrants to the workforce.
This was due to factors such as economic uncertainty and the preference for flexible hiring practices.
In another 2023 surveybythe National Trades Union Congress (NTUC) as part of its Youth Task Force engagements, two in three respondents said that they perceived the employment landscape to be “volatile”, “challenging” and “tedious” to navigate.
More than 10,000 people aged 18 to 25 took part in the engagements.
Ms Natasha Choy, executive secretary of Young NTUC, said the survey also found that around three quarters of the respondents were worried about job loss.
For some fresh graduates,securing permanent job roles continues to bean uphill task, never mind what statistics show of"high and broadly stable" overall employment ratesfor residents in the age group of 25 to 64in the latest 2023 Ministry of Manpower (MOM) report.
Ƶ TODAY looks at what else these young jobseekers have experienced, what employers say and whether this trend is temporary or a sign of deeper structural shifts in the job market.
JOB HUNT "DRAINING" AND "DEPRESSING"
Mr Shyam Prasad Nedumaran, 25, graduated from the Singapore Institute of Technology (SIT) with a degree in computing science this year and has sent out 100 applications for software development roles.
Many recruiters have said that their companies prefer someone with more professional experience than he has.
The application process, which is rigorous and repetitive, can be “mentally draining”, Mr Shyam said.
He has had to do technical tests that lasted three hours, each requiring applicants to pick up a unique set of skills suited to the set of technologies that each company uses, but did not get a response from firms after that.
He has taken on part-time work at a bookstore to get some income in the meantime.
“People outside the computer science industryhave been sayingthat this is the best place to get jobs. I’m not sure if I feel the same way right now. I think every field has its own set of challenges if you want to get into it,” Mr Shyam added.
Noting the saturation of applicants in his industry, he plans to focus on companies offering graduate programmes and has voluntarily taken on software development projects for non-governmental organisations, to gain more experience.
Ms Haelyn Lim Ying, 26, who graduated with a bachelor of arts in design practice from the Nanyang Academy of Fine Arts, said that even for entry-level roles, employers set high demands for candidates.
“Although some listings say ‘fresh graduates are welcome’, when you look deeper, they want skills and experiences that a regular design graduate won’t have.”
Ms Lim was open to internships to build her portfolio, but many companies that she would like to work for are accepting only interns who are still studying.
She, too, has sent out about 100 job applications and in the midst of what she calleda “depressing” job hunt. Shehas taken up short-term work in marketing and freelance design, as well as helping out part-time at her family’s business in the healthcare industry.
To better meet employers’ expectations, Ms Lim plans to enhance her search for full-time work by taking a coding course to strengthen her skills and stay competitive.
For one 23-year-old graduate with a bachelor of engineering in information engineering and media from NTU, all she has gotten from a five-month job hunt are three interviews and 15 rejections out of around 100 applications.
Wanting to be known only as Ms Ngbecause of concerns that public comments may negatively affect her job search, she said:“I entered university as the ‘Covid batch’ in 2020, which was when I think companies hired more people.
"Now, they think they’ve hired too many people, so they’re laying off or freezing hiring, which prevents the current fresh graduates from getting jobs.”
To earn some money, Ms Ng sought temporary positions related to her degree and is now on a four-month contract with a Singapore bank.
Looking for a full-time job while doing part-time work has been trying.
“I start work at 9am, reach home at 7.30pm, eat and shower and it’s 9pm. I sleep by midnight because it’s quite tiring to be looking at a computer all day.
"So in those three hours of free time from 9pm to 12am, I have to choose between relaxing or doing something productive like applying for more jobs or building up my portfolio.”
WHY EMPLOYERS ARE INTO CONTRACT HIRING
With fresh graduates finding it harder to secure full-time roles in today’s job market, are shifting employer hiring preferences adding to these hurdles?
Mr Kenji Naito, groupchief executive officer of recruitment firm Reeracoen, does not think that there is a “strict elevation” in hiring standards. However, employers have adopted a “more measured” approach to hiring, particularly for entry-level roles.
“Organisations may prefer experienced hires, as they tend to onboard more quickly and achieve productivity sooner," he said.
"For fresh graduates, there is often a learning curve as they develop the necessary skills, work ethic and maturity for full-time roles."
He added that some companies may turn to contract and internship roles as a strategic response to rapid changes in the economy. These non-permanent roles offer companies the flexibility they need to adapt quickly while still bringing in new talent.
Mr Adam Piperdy, chief experience officerof events company Unearthed Productions, said that his firm offers a “step up programme” to new hires, which is a one-year contract that can be converted into a full-time one, pending the worker's performance and favourable business conditions.
“For small- to medium-sized enterprises (SMEs) like ours, we are always guided by market conditions, and since many multinational corporations (MNCs) have started to shrink their manpower, many SMEs are a bit more cautious in terms of expanding their headcount.”
Mr Piperdy added that offering fresh graduates a short-term position can be mutually beneficial because employees may assess the “unspoken aspects” of work, such as if the firm’s work-from-home policies or culture suit their expectations. As employer, he also has the flexibility to see if the graduate is the best fit.
One human resources executive in the media industry, meanwhile, said her firm has offered full-time roles to interns who were fresh graduates, and it provides fixed-term contracts during peak periods.
Ms Tee, who declined to provide her full name because she did not get her employer’s permission to comment,said that she has encountered fresh graduates who prefer contractual work because they are given a “hands-on preview” to the role and company.
“It’s quite a responsible way of approaching and readying yourself for a first job,” she added.
Fresh graduates may likely also encounter smaller firms that are focusing on “right sizing” and holding off on hiring, one employer said.
Mr Lester Leong, co-founder and CEO of startup Gush that deals in sustainable building materials, said that companies such as his are seeking ways to be more efficient.
He noted that many fellow entrepreneurs have found that “knowledge-based activities” on the job that might have been done by less experienced hires can now be effectively handled by artificial intelligence, so they are more focused on hiring experienced professionals.
Over at water purifications solutions firm Liquinex Group, its co-founder and CEO Bashir Ahmad prefers to hire on a project basis, and the firm also offers internships to newer entrants in the workforce with a potential for conversion, should they fit the company’s dynamic.
As for why he might hesitate in offering fresh graduates full-time positions, Mr Bashir said there are concerns that some of these young hires might not be ready for the role and he is wary of potential high training costs, as well as keeping people he might not need.
After all, the company is small, with a staff strength of under 10 employees now, two of whom were hired on a contract basis.
“As long as our company remains this size, this will be our approach. We go from project to project, so when there’s a gap between projects, we don’t want to be laden with overheads,” Mr Bashir added.
IS THIS A SIGN OF THINGS TO COME?
As employers increasingly turn to contract hiring and internships due to economic uncertainty, it raises the question: Does this apply just to fresh graduates or is it part of a broader, long-term trend?
In MOM's 2023 Labour Force report,the share of residentemployees in permanent positions in Singapore rose to 90.5 per cent, up from 89.5 per cent in 2022. This reflected a slight increase in permanent employment.
On the other hand, the most recentJoint Autonomous Universities Graduate Employment Surveyfound that the percentage of those in full-time permanent employment had dropped to 84.1 per cent from 87.5 per cent in 2022.
Economists pointed out that Singapore’s overall labour market might have shown a slight increase in permanent employment last year, but the situation is more complex when it comes to today’s fresh graduates.
In general, young jobseekers usually face higher unemployment rates than the general population.
The same MOM report found that professionals, managers, executives and technicians (PMETs) under 30 years old had a 2.9 per cent unemployment rate, compared to the general PMET population's average of 2.4 per cent.
The growth in the pool of permanent roles may be driven by sectors such as hospitality or service, to which fresh graduates do not typically gravitate, one economist said.
Mr Song Seng Wun, economic adviser for financial service provider CGS International, added: “There is the normalisation of business activities now, after the Covid-19 pandemic, and we are seeing changes shaping business conditions such as technology. This means that some job functions can be merged or replaced.
“All businesses are looking for ways to manage costs, especially labour costs, because they only see a small growth in revenue or top line.”
With tighter budgets, companies are likely to prioritise candidates with “adaptable skill sets” and prior work experience, which can sometimes be challenging for fresh graduates, a recruiting firm said.
Online jobs portal Jobstreet in Singapore, operated by Seek that is headquartered in Australia, saidthat 32 per cent of hirers here anticipated an active job market in the second half of 2024, down from 45 per cent in the first half. This was fromitsHiring, Compensation and Benefits Report 2024.
And in advance labour market estimates released by MOM on Oct 29, fewer companies have reported an intention to hire or to raise wages in the next three months.The ministry said then that global economic risks such as heightened geopolitical tensions and persistent trade conflicts could lead to businesses maintaining current operations as a priority over expansions or wage increases.
Ms Ling from OCBC said that there is likely an “air of caution” in many corporate hiring intentions, which is affecting fresh graduates.
“The entry-level job market is like the canary in the coal mine. It is first to feel the chills from any slowdown in hiring intentions," she added.
“While overall retrenchments and unemployment numbers remain controlled, anecdotally, some companies are already on a hiring freeze in anticipation that 2025 may be challenging due to the myriad of uncertainties after the United States elections, China’s bumpy recovery, as well as geopolitical tensions.”
Granted that seasonal factors such as the Christmas and Chinese New Year periods often see a rise in contract work in certain service sectors, the increasing pattern of temporary work is likely driven more by corporate restructuring and increased global uncertainty, an academic said.
Dr Kelvin Seah, a senior lecturer in economics at NUS, added: “Artificial intelligence, automation and industry-specific transformations have inevitably led to much corporate restructuring, especially in large companies around the world.
"As a result, companies may require specialised skills such as in technology and marketing on a short-term basis, during the process of these transformations."
Businesses may therefore prefer contract-hiring fresh graduates who lack prior work experience.
This trend, however, may also have an impact on some industries or types of businesses more than others.
Ms Choy from Young NTUC said that certain “key growth areas” may be expected to offer continued demand for fresh graduates in the face of rapid developments in digital technology, an ageing population and the greening of Singapore's economy.
Some roles that graduates may look out for include those in sustainability, info-communications technology, as well as care and support services such as roles in healthcare and general education.
In response to queries from Ƶ TODAY, the Association of Small and Medium Enterprises said that it has not observed a “significant shift” among SMEs toward offering contract roles.
“Most SMEs continue to struggle to attract talent, and offering contract roles would likely make it harder to secure suitable candidates,” it added, unlike government agencies and larger corporations that may be more inclined to offer contract positions.
However, with the rise of digital work and higher salary demands from Singaporeans, the association noted that fresh graduates and professionals of all ages are facing stiff competition from regional talent.
It contendedthat fresh graduates these days might perceive an increase in contract or temporary positions compared to past graduation periods, particularly as MNCs and larger companies freeze hiring or undergo restructuring.
In addition, ongoing discussions around rising costs, flexible work expectations and the offshoring of some roles to neighbouring countries may influence SME hiring trends, including a slowdown on hiring full-time professionals. This maycontribute to the perception that more internship roles are available than full-time positions, the association added.
HOW FRESH GRADS COULD LEARN FROM CHANGES
As employers strategise by turning to short-term hiring, what it usually means for contract workers is that they receive fewer benefits, limited insurance coverage and relatively lower job security.
Some fresh graduates said that their internships offered low pay and an elasticjob scope, with a workload akin to that of a full-time position.
Ms Sarah Neo, head of career development at SUSS, said thatcontract work may sometimes lack the structured career progress found in permanent positions, which can limit early career advancement opportunities.
Employers told Ƶ TODAY that their internships and contract positions, even the longer contracts that extend to a year or two, typically do not provide the same health benefits and bonuses as full-time roles.Ms Neo noted that this can affect the overall earning potential and financial stability of young professionals.
Despite these drawbacks, human resource expertssuggested thatshort-term workin the form of internships and part-time contracts, as they become more popular, may grow to beviewed as legitimate experiences that are part of a career trajectory.
Ms Karen Ng, regional head of expansion at human resources platform Deel, said that full-time experience is still “highly regarded”, but employers increasingly value internships, contract roles and part-time work as “essential components” of a fresh graduate’s experience.
As more businesses pivot to a global workforce, Ms Ng also said that it is important for fresh graduates to accumulate working experience, to prove that they have been tested in business environments, even if temporarily.
Other experts also agreed that short-term roles may serve as a foundation for better work opportunities or even a full-time role at the same company.
Mr Naito from Reeracoen group said that graduates who take on interim roles can signal to employers that they are resilient, adaptable and versatile.
“Permanent positions may remain ideal, but starting in contract or internship roles can act as stepping stones, helping graduates build foundational skills and industry connections that can facilitate a smoother transition into full-time careers,” he added.
Mr Mervyn Ho, general manager at background screening company Risk Management Intelligence, said recent trends suggested that “flexible, proactive” graduates are finding professional success while the job market remains competitive.
“Building a portfolio with practical skills, whether from internships, contract work or project-based roles, can make a substantial difference.”
Though short-term roles may not turn into permanent positions right away, Mr Ho added that these positions provide graduates with exposure to real-world technologies, industry insights and connections early on, bolstering more informed career moves in the future.
For example, candidates with university-facilitated internships tend to be better prepared for professional expectations and graduates could benefit from “more structured” industry partnerships and internship programmes.
HOW UNIVERSITIES ARE HELPING GRADUATES FIND JOBS
In response to Ƶ TODAY’s queries, Singapore’s six autonomous universities said that, while their 2024 graduate employment survey is underway, they continue to support students’ job searches through career fairs, industry-focused curricula, internships, global opportunities and career advising.
The National University of Singapore, addressing how “shorter economic cycles” affect job availability and skill demand, said that it has establishedthree interdisciplinary colleges since 2020 to prepare students for diverse career paths.
In its “multi-pronged” approach to career readiness, it provides free online career tools and hosts more than 600 recruitment events each year.
Similarly at Nanyang Technological University (NTU), Professor Gan Chee Lip, who is Associate Provost in Undergraduate Education, emphasised the university’s focus on experiential learning, through industry partnerships and offerings like projects, internships and industry-ledworkshops.
These prepare students for careers in increasingly valued fields such as data analytics, sustainability and digital transformation. Prof Gan added that NTU hosts in-person and virtual recruitment fairs to connect graduates with employers.
Ms Corrine Ong, director of career and employability services at Dato’ Kho Hui Meng Career Centre in the Singapore Management University, said that the university provides complimentary career consultation for alumni up to three years upon graduation.
“We strongly encourage our alumni to stay engaged with our alumni office for regular networking events, professional events and sign up for mentorship programmes specially curated for alumni to stay connected with other alumni across various industries.”
Postgraduate students are matched with a dedicated coach before classes begin and nearly all programmes offer credit-bearing internships, Ms Ong added.
Mr Bernard Nee, deputy president of industry and community at the Singapore Institute of Technology (SIT), said that each of the institute's degree is guided by an industry advisory committee with leaders from MNCs, startups and government organisations.
SIT’s 2023 survey of its graduates’ employment outcomes, which was released separately from the aforementioned joint autonomous universities graduate employment survey, found that eight in 10 of its graduates in the labour forcehad secured full-time permanent employment.
Mr Nee said that SIT’s “industry-ready skills framework” hones technical skills as well as soft skills such as problem-solving, communication, teamwork and digital fluency, with graduates receiving a record of their transferable skills.
Singapore University of Technology and Design reported that roughly nine in 10 of its graduates have found employment within six months over the past five years.
Its chief communications officer Tammy Tanhighlighted that the university's curriculum centres on design, artificial intelligence and technological transformations, with career workshops such as the Undergraduate Practice Opportunities Programme. This programme, spanning five stages, helps students align their goals with industry expectations.
Over at the Singapore University of Social Sciences (SUSS), its head of career development Sarah Neosaid that it offers mental wellness resources to support graduates as they navigate their job search, in recognition that career resilience is built on one’s mental well-being.
In anticipation of a job market that wants graduates who are “industry experienced and globally aware”, it also offers a 12-month work-study degree programme,where students alternate between full-time work and part-time study.
“While no institution can guarantee employment, we are committed to ensuring that each of our graduates is well-prepared, adaptable and supported in seizing opportunities,” Ms Neo added.
For DrAndrew Lee, 31, who recently completed his doctorate in biochemistry at NUS with the support of research agency A*STAR, job hunting outside academia has involved applying for nearly 100 positions, including entry-level ones typically open to undergraduates.
This was not too surprising for him, because he understood that some employers might view advanced degree holders as potentially overqualified and too costly for entry-level roles, yet lacking the work experience needed for mid-level positions.
In the absence of a full-time offer, DrLee took a “high-risk” route by accepting an internship in an investment firm even though it offered no chance of conversion to a full-time role.
It has helped him realise that he needs more finance knowledge for the roles he wants and he is hoping that this experience will prepare him for “life outside the lab”.
“It helped a lot, not just in hard skills, but in honing soft skills. It also gave me a clearer idea of what roles I potentially can contribute to and apply for instead of (indiscriminately applying), and how I can apply my current strengths and skill sets.”
Mr Smith, who graduated in 2023, agreed that doing short-term contractual work in a range of industries has been instructive in clarifying his career direction.
However, this process of “trial and error” might not be feasible for all graduates, because some internships offer “very little” compensation, which may not suit those who need to prioritise financial stability in their job choices.
He still hopes that his present internship might lead to a full-time position in the current firm.
“I didn’t really know this when I graduated, but the career path is not a straight route. Since graduation, I have friends who have resigned (from full-time roles) and are looking for a job. I have friends who left their jobs and went to another one.
“This idea that there’s one job you would just fall into after graduation is just not true.”
