🔄 The Urgent Calls from Labour MPs in Parliament

In the heated Budget 2026 debate on February 25, 2026, Labour Members of Parliament (MPs), affiliated with the National Trades Union Congress (NTUC), raised alarms over the growing impact of artificial intelligence (AI) on young graduates entering Singapore's job market. Led by figures like NTUC Secretary-General Ng Chee Meng and Deputy Secretary-General Desmond Choo, they advocated for enhanced graduate career support to navigate AI disruptions. Ng emphasized empowering every worker to become AI-ready, stating, “The choices we make today will shape the course of our future, and the lives of our workers and families.”

Desmond Choo warned of a potential 'missing middle' in the workforce, where AI automates routine junior tasks, squeezing entry-level roles traditionally used for training. This could leave a gap between senior experts and AI tools, hollowing out talent pipelines. Choo proposed structured apprenticeships, foundational AI literacy in education, and accelerated reskilling programs.

Other MPs like Wan Rizal highlighted early career exposure through platforms such as NTUC Youth, providing guidance and industry mentorship before graduation. Patrick Tay called for expanding the GRaduate Industry Traineeships (GRIT) Programme with allowances matching starting salaries and mandatory permanent conversions.

AI's Transformative Impact on Entry-Level Jobs

Artificial intelligence, particularly generative AI models like ChatGPT and advanced automation tools, excels at routine cognitive tasks such as data entry, basic analysis, and report generation—precisely the duties assigned to fresh graduates. This shift risks eroding the 'bottom rung' of career ladders, where juniors learn on the job. A NTUC survey revealed nearly 40% of professionals, managers, and executives (PMEs) anxious about job security in the next six months.

Ministry of Manpower (MOM) data indicates entry-level professional, managerial, executive, and technical (PMET) vacancies rose to 39,000 in September 2025 from 26,000 the prior year, yet the long-term AI effect remains uncertain. Institutes of Higher Learning (IHLs) like the National University of Singapore (NUS), Nanyang Technological University (NTU), and Singapore Management University (SMU) report stable employment rates around 85-90% for 2024 graduates, but full-time permanent roles dipped slightly to 72-83% across clusters.

For instance, Information & Digital Technologies graduates enjoyed a median gross monthly salary of S$5,500 with 86.5% employment, outperforming humanities at S$4,250 and 86.2%. However, trends show declines from 2022 peaks, signaling emerging pressures.

Government's Proactive Measures and Commitments

Prime Minister Lawrence Wong reassured Parliament of no 'jobless growth,' pledging deliberate investments in human capital. A new National AI Council, chaired by PM Wong, will drive missions in manufacturing, finance, and healthcare, coordinating upskilling. Budget 2026 allocates for AI literacy across all IHLs and six months' free premium AI tools for workers in accountancy and law, expanding via SkillsFuture.

Existing initiatives include the AI Apprenticeship Programme (AIAP) by AI Singapore, boasting 85-90% graduate placement into AI engineering roles, and GRIT launched in October 2025 with 800 traineeships—350 placed by early 2026. These offer stipends (e.g., S$4,000/month for AIAP) and pathways to permanent jobs.

MOM supports career coaching via Workforce Singapore (WSG) and e2i, while IHLs embed AI in curricula alongside soft skills like critical thinking.Explore higher ed career advice for personalized strategies.

Singapore Universities' Response: Building AI-Resilient Graduates

NUS, NTU, SMU, Singapore University of Technology and Design (SUTD), Singapore Institute of Technology (SIT), and Singapore University of Social Sciences (SUSS) are integrating AI deeply. SUTD pioneered AI in its Freshmore curriculum from AY2026, teaching design AI mindset. NTU's PaCE offers SkillsFuture Career Transition Programmes (SCTP) in data analytics with dedicated graduate career support, including coaching and hiring events.

SMU launched Business AI programmes for leaders, while SIT's Applied Sustainability Talent Programme (ASTP) from AY2026 targets green-digital economy. SUSS provides a Master of Artificial Intelligence for Business. These align with Budget 2026's AI literacy push, preparing students for hybrid human-AI roles.

Universities collaborate with industry for work-based learning, boosting employability. Check university jobs for openings in AI-related fields.

Employment Trends: Data from Recent Surveys

The Joint Graduate Employment Survey (GES) for 2024 graduates (published 2025) shows resilience: 83-95% employment rates across clusters, with business at 90.7% (S$4,350 median) and engineering at 83.2% (S$4,528). Follow-up data for law hit 95.1% at S$7,000. Despite global uncertainties, salaries rose slightly, but permanent roles softened.

• NUS: 88.1% employed within six months for 2024 cohort.
• NTU/SMU: Similar high rates, IT leading salaries.
• SUSS/SIT: Strong in applied fields, 91.6% for SIT.

AI-exposed fields like computing saw stable demand but calls for upskilling.MOE GES Report

Real-World Success: GRIT and AIAP Case Studies

GRIT places fresh IHL graduates in six-month paid traineeships across sectors, with government co-funding allowances up to starting salaries. By February 2026, 350 trainees secured roles, easing first-job transitions. AIAP's deep-skilling phase (3 months) followed by projects yields 85% placement, with alumni receiving multiple offers.

Example: A NTU engineering graduate via GRIT@Gov transitioned to a permanent role at a public agency, gaining AI auditing experience. These programmes bridge academia-industry gaps, vital amid disruptions.

Challenges: Navigating the 'Missing Middle' and PME Anxieties

Beyond graduates, PMEs face transition hurdles; SkillsFuture's Jobseeker Support Scheme (JSS) threshold (S$5,000/month) needs review. MPs urged earlier retrenchment notices and AI Career Coach personalization. SMEs in retail/F&B struggle with adoption, risking exclusion.

Cultural context: Singapore's high-stakes education system emphasizes credentials, but AI demands adaptability. Solutions include tripartite partnerships via Company Training Committees (CTCs).

Future Outlook: A Resilient, AI-Augmented Workforce

With RIE2030 and Budget 2026, Singapore eyes AI as growth engine. IHLs' AI mandates, NTUC's AI-Ready SG (subsidized tools, training), and expanded PWM promise uplift. PM Wong: “We will invest more deliberately and more systematically in our people.” Projections: Tech workforce grew to 214,000 in 2024; continued expansion expected.

Browse higher ed jobs tailored for AI skills.

Actionable Insights for Aspiring Graduates

1. Upskill via SkillsFuture credits for AI courses (1,600+ options).
2. Apply to GRIT/AIAP for hands-on experience.
3. Leverage university career services; build portfolios showcasing AI-human synergy.
4. Network on Rate My Professor for insights.
5. Pursue interdisciplinary majors blending AI with domains like business or health.

Parents/students: Focus on lifelong learning mindset. Employers: Invest in apprenticeships for sustainable pipelines.

Photo by CHUTTERSNAP on Unsplash

Conclusion: Collaborative Path Forward

The Budget 2026 debate underscores tripartite resolve: government, unions, IHLs uniting against AI disruptions. Enhanced graduate career support via apprenticeships, literacy, and transitions will secure Singapore's edge. Explore opportunities at higher-ed-jobs, career advice, and rate-my-professor. Stay proactive—AI amplifies, not replaces, human potential.