Singapore’s newest university graduates are entering an increasingly difficult job market, with some turning to government-funded traineeships that pay less than half the median starting salary for degree holders as artificial intelligence adoption and cautious corporate hiring reshape early career opportunities.
The Graduate Industry Traineeships (GRIT) programme provides unemployed graduates with temporary positions at government agencies and private companies, offering monthly allowances ranging from S$1,800 to S$2,400. While the scheme aims to help graduates gain industry experience, the lower end of the payment range is significantly below typical graduate starting wages.
Lee Jia En, a 25-year-old graduate from the Singapore University of Social Sciences, joined the programme after struggling to find suitable employment. She said she initially felt disappointed after completing four years of university but accepted the lower pay as a pathway toward future opportunities.
“When I started the programme, I thought: ‘Shucks. I’ve finished four years of school and all I’ve got is a job that pays half of what my friends get’,” Lee said. “But I felt it was worth it if it could help me get to my next job.”
The challenges facing Singapore’s graduates reflect broader global pressures affecting entry-level employment, including increased adoption of artificial intelligence, slower post-pandemic hiring and economic uncertainty. Singapore, as a trade-dependent and energy-importing economy, has faced additional pressure from shifting global conditions.
Manpower Minister Tan See Leng said in May that “heightened uncertainty” had made companies more cautious about hiring. Prime Minister Lawrence Wong has also warned that some existing jobs could disappear as artificial intelligence transforms workplaces.
For some graduates, the difficulty has raised questions about the value of their qualifications. Phang Jun, a 24-year-old communications graduate from Singapore Management University, said her degree felt “useless” after she applied for about 100 jobs and received only three low-paid offers outside her field.
Employment data has reflected the changing environment. According to Singapore’s latest graduate employment survey published in March, full-time employment rates among business, arts and science graduates from the country’s six universities declined by about 10 percentage points between 2023 and 2025.
The government introduced GRIT as a response to the weaker hiring environment, with the scheme modelled partly on a similar initiative introduced during the Covid-19 pandemic. Around 70 per cent of each trainee’s fixed compensation is funded by the government, while employers contribute the remaining portion.
The funding arrangement has encouraged some companies to participate. Oversea-Chinese Banking Corporation hired 40 trainees in areas including data and credit analysis after offering 50 positions through the programme, according to Lee Hwee Boon, the bank’s head of human resources.
However, interest from graduates has been lower than expected. Applications for GRIT fell by about 90 per cent between the programme’s launch in October and February, with more than half of the 800 available roles filled by March, according to comments from Tan.
The government said some applicants declined placements because they found other employment opportunities. However, academics and graduates have suggested that concerns over the programme’s reputation and pay levels may also have discouraged participation.
Kelvin Seah, an associate professor of economics at the National University of Singapore, said some graduates may view GRIT as a programme mainly for those unable to secure jobs, creating a stigma that affects participation.
Lee said she felt “ashamed” when joining the programme because friends had avoided it due to the lower compensation. During her traineeship, she was initially assigned basic administrative tasks, although she later secured a permanent role with the same government employer.
The government has defended the pay structure, saying the allowance is intentionally capped below graduate median salaries to encourage trainees to continue seeking permanent employment and motivate employers to offer full-time positions.
For some participants, however, uncertainty remains. Ng Hui, a 26-year-old information systems graduate from Singapore Management University, said his S$2,400 monthly stipend was insufficient to reduce his S$50,000 in university loans. After working as a data engineer trainee at a government agency, he took on tutoring work and spent weekends preparing for interviews.
Meanwhile, Phang has shifted her focus toward networking and becoming open to a wider range of jobs as competition increases among new graduates entering the market.
“Right now,” she said, “I’ll just take whatever comes.”
