In Singapore, the problem with jobs is not overqualification but skills
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SINGAPORE: A study from the Ministry of Manpower (MOM) published mid-month concerned the issue of Singaporeans being overqualified for their jobs. Last year’s overqualification rate is substantial, at nearly one in five. However, a large majority of the overqualified workers are those who chose their jobs voluntarily.
According to the Occasional Paper on Overqualification in Singapore 2025, overqualification in Singapore is not a major structural problem but is, in large part, a condition that is mostly voluntary, often temporary or transitional and is on the increase because of more tertiary-level graduates. Moreover, the biggest challenge for Singapore’s job market is ensuring that workers are not just qualified, but have the right and up-to-date skills for today’s needs.
The report points to the overall strength and efficiency of the city-state’s labour market. While Singapore’s overqualification rate last year stood at 19.4%, this is lower than in other high-income countries, including the United States, Belgium, Australia, and the United Arab Emirates. The global average of overqualification in high-income countries is 21.6%.
Moreover, 64% of Singapore’s workforce is highly educated, reaching the tertiary level. Despite this, again, its job matching is relatively good by global standards.
Voluntarily overqualified
From 2015 to 2025, Singapore’s overqualification rate rose from 16.3% to 19.4%. MOM noted that people’s choices to take roles they are more than qualified for are connected to their preferences for job stability, flexibility, or opportunities to gain experience.
Last year, about nine out of 10 overqualified workers, or 17.7% of the workforce, were voluntarily overqualified. Only 1.7% of the workforce, meanwhile, were involuntarily overqualified.
In the last 10 years, the number of involuntarily overqualified workers has remained low and stable, which suggests that there is a limited mismatch in the job market.
A skills problem, not overqualification
The study also showed that when it comes to hiring workers, employers do not put the highest premium on degrees. Instead, for almost 80% of jobs, the top priorities are experience (~48%) and skills (~20%).
This shows that hiring has become more about certain skills, as opposed to the level of education. The report cited the examples of data scientists, engineers, and trainers as hard-to-fill roles, with PMET vacancies unfilled for more than six months, rising to 16% last year.
A problem for young workers
Nevertheless, similar to what the latest Graduate Employment Survey showed last March, overqualification is the biggest problem for young workers, with the highest rates for employees under the age of 30.
Fortunately, this appears to be a temporary problem. Young workers may take on entry-level positions they are overqualified for, and then take on roles for which they are better matched later on.
Interestingly, diploma holders are slightly more affected than degree holders, and the fields with the highest number of overqualified workers are in the humanities, arts, and mass communication. Those who graduate from law and health courses have a lower number, mainly due to strict qualification requirements.
Across different industries, higher numbers of overqualification are found in the sectors of food and beverage, administrative and support services, and transport, such as ride-hailing, while professional services and tech sectors have lower overqualification rates. Also, overqualification is more common in smaller and locally owned companies. /TISG
Read also: WP MP Louis Chua: Now is the time to do more for Singapore’s fresh graduates
This article (In Singapore, the problem with jobs is not overqualification but skills) first appeared on The Independent Singapore News.