Flexible career choices drive overqualification trends in Singapore, MOM & NTUC studies reveal

Singapore’s overqualification rate is lower than that of many advanced economies and is largely driven by voluntary career choices, according to two complementary studies released by the Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC).

The findings, based on the framework developed by the International Labour Organisation (ILO), shed light on qualification-related underemployment, commonly referred to as overqualification, where individuals hold higher qualifications than their jobs require. The studies aim to broaden understanding of underemployment beyond traditional measures such as time-related underemployment.

The reports reveal that Singapore’s overqualification rate stands at 19.4%, below the 21.6% average for high-income countries such as the United States, the United Kingdom, Finland, and Switzerland. 

This is particularly notable given the city-state’s highly educated workforce, with the proportion of tertiary-educated workers rising from 51.6% in 2015 to 64% in 2025, well above the 41.2% average among developed economies.

Officials attribute the relatively moderate rate to Singapore’s continued creation of high-skilled jobs, ensuring that the labour market absorbs an increasingly educated workforce.

A key takeaway from both studies is that overqualification in Singapore is largely voluntary.

MOM’s analysis found that about nine in ten overqualified workers, representing 17.7% of the resident workforce, choose roles below their qualification levels to align with personal aspirations, work-life balance, or career transitions.

In contrast, involuntary overqualification remains minimal, affecting just 1.7% of resident workers and staying below 3% over the past decade. This indicates limited structural mismatches within the labour market.

NTUC’s research, based on a survey of 1,100 Singapore citizens and permanent residents conducted in October 2025, echoes these findings. It highlights education field-job mismatches as the most common form of underemployment (31.4%), followed by qualification-job mismatches (23%), skills-job mismatches (22.5%), and qualification-occupation mismatches (20.3%).

The studies also underscore favourable employment outcomes for tertiary graduates. 

Median gross monthly incomes for full-time employed graduates increased from $5,800 to $7,605 over the past decade, while starting salaries for fresh graduates from local Institutes of Higher Learning have also risen steadily.

These trends signal sustained demand for skilled talent and continued economic resilience.

Employers in Singapore are increasingly valuing skills and experience over formal qualifications. In 2025, academic credentials were not the primary consideration for 79.6% of job vacancies. Instead, employers prioritised relevant experience (48.2%) and skills and abilities (20.1%).

However, challenges persist in specialised sectors. The proportion of professional, managerial, executive, and technical (PMET) vacancies unfilled for at least six months rose from 14.4% in 2024 to 16% in 2025, particularly in roles requiring niche expertise such as data science, teaching, and civil engineering.

Nearly a quarter of employers reported skills gaps within their workforce, leading to increased workloads, quality challenges, and missed business opportunities. 

The findings highlight the growing importance of lifelong learning in an era marked by rapid technological change and evolving job requirements.

NTUC Assistant Secretary-General Patrick Tay emphasised that many workers are making deliberate career choices aligned with personal priorities.

“A dynamic labour market must offer both flexibility and security,” Tay said, adding that NTUC will continue working with tripartite partners to ensure inclusivity and support across different life stages.

MOM Deputy Secretary (Workforce) Kenny Tan noted that while Singapore’s overqualification rate is lower than that of other high-income nations, efforts remain focused on empowering citizens to secure jobs that match their potential.

To address evolving skills demands, the government and its tripartite partners, including MOM, the Ministry of Education, Workforce Singapore, SkillsFuture Singapore, and NTUC, are intensifying initiatives in reskilling, career guidance, and industry-relevant education.

These include programmes such as Career Conversion Programmes, SkillsFuture Career Transition initiatives, and enhanced job-matching tools like the Careers & Skills Passport. The upcoming Skills and Workforce Development Agency will integrate training, employment facilitation, and job redesign capabilities into a single platform.

The studies conclude that overqualification in Singapore reflects a flexible and dynamic labour market rather than systemic inefficiencies. As work evolves, policymakers and industry stakeholders remain committed to ensuring that workers’ skills align with future opportunities while supporting diverse career pathways.