Singapore's labour market continues to demonstrate resilience, even as the share of tertiary-educated workers has surged to 64 per cent in 2025 from 51.6 per cent a decade earlier. Recent studies by the Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC) shed light on overqualification—a form of underemployment where workers hold qualifications exceeding job requirements—and reveal a nuanced picture. Released on April 14, 2026, these complementary reports highlight that while 19.4 per cent of resident workers are overqualified, the vast majority opt into such roles voluntarily, prioritizing flexibility and work-life balance over perfect qualification matches.

This trend underscores Singapore's adaptive workforce, where job stability, fewer hours, and career transitions play key roles. Yet, a small but persistent 1.7 per cent face involuntary overqualification, pointing to pockets of skills mismatch amid rapid technological shifts. For higher education stakeholders, these insights signal the importance of aligning curricula with employer needs, fostering lifelong learning, and preparing graduates for diverse career paths.

📊 Defining Overqualification and Underemployment

Overqualification occurs when a worker's educational attainment surpasses the typical requirements for their occupation. The MOM study adopts an International Labour Organization (ILO)-aligned indicator, classifying it as 'qualification-related underemployment'. NTUC expands this to encompass skills-job mismatch (22.5 per cent), education field-job mismatch (31.4 per cent), and qualification-occupation mismatch (20.3 per cent per ILO measure), based on a survey of 1,100 citizens and permanent residents in October 2025.

Underemployment broadly captures not just joblessness but suboptimal utilization of skills, time, or qualifications. Time-related underemployment—part-time work desired full-time—dropped to 1.9 per cent in 2025 from 2.3 per cent previously. These metrics reveal Singapore's tight labour market, with unemployment at 2 per cent and resident long-term rates low at 0.9 per cent.

Key Statistics from the MOM Study

The MOM's 'Overqualification in Singapore 2025' report, drawn from the Comprehensive Labour Force Survey of 33,000 households, pegs the overqualification rate at 19.4 per cent for residents—below the 21.6 per cent high-income average. This holds despite Singapore's elevated tertiary attainment. Voluntary cases dominate at 17.7 per cent, driven by choices for stability (31.1 per cent), skill utilization (25.3 per cent), or interesting work (24.4 per cent).

Business and administration graduates form the largest overqualified cohort, reflecting abundant entry-level roles. Median incomes for tertiary full-time workers climbed to S$7,605 monthly, with fresh local institute graduates seeing salary gains too.

NTUC's Broader View on Underemployment Forms

NTUC's research, partnered with SUTD's Lee Kuan Yew Centre, uses subjective worker perceptions. Education field-job mismatch tops at 31.4 per cent, where degrees don't align with roles. Skills underutilization affects 22.5 per cent, highlighting gaps in practical abilities despite qualifications. This complements MOM's focus, urging expanded official metrics beyond time and qualification indicators.

Employers echo this: 24.3 per cent report skills shortages, causing workload spikes (49.9 per cent) and tech adaptation hurdles. PMET vacancies lingering over six months hit 16 per cent in 2025.

The Rise of Voluntary Overqualification: Why Workers Choose It

Nine in ten overqualified workers select roles below their level for deliberate reasons. Younger professionals (<30) lead involuntary cases at 21.3 per cent, often gaining experience, while mid-career and seniors prioritize balance. Flexible arrangements, remote work, and family needs fuel this, per Tripartite Guidelines.

• Job stability and security
• Work-life harmony
• Career pivots or upskilling phases
• Reduced hours for caregivers

This reflects a mature market where workers value holistic fit over title prestige.

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Demographics, Sectors, and Graduate Outcomes

Overqualification spans ages but peaks among youth entering the market. Business grads dominate, but engineering and IT see mismatches in specialized PMET roles like data science. Fresh graduates fare well: full-time employment high, salaries up. Yet, 2025 surveys note fewer securing permanent roles immediately post-graduation.

For universities like NUS and NTUC, this stresses industry partnerships for internships, emphasizing LifeSkills like critical thinking alongside technical prowess.

Employers' Lens: Skills Gaps Trump Excess Qualifications

Employers rank experience (48.2 per cent) and skills (20.1 per cent) over degrees in 79.6 per cent of postings. Skills atrophy from non-use exacerbates gaps in AI, engineering. Visit the full MOM report for employer survey details.

International Comparisons and Singapore's Edge

Singapore outperforms peers: lower overqualification despite higher education rates. US, UK show higher figures amid similar trends. Robust high-skilled job creation absorbs grads effectively.

Implications for Higher Education Institutions

Universities must pivot: integrate industry curricula, apprenticeships. NUS, NTU collaborations exemplify this. Lifelong learning via SkillsFuture counters skills half-life shortening to months in tech fields. Overqualification signals success in producing talent but warns of misalignment risks.

Solutions and Tripartite Recommendations

MOM/NTUC advocate reskilling (CCPs, SCTP), career guidance (Career Health SG), agency merger into Skills and Workforce Development Agency. NTUC pushes multi-skilling hubs, parent supports, underemployment metric expansion. Employers: flexible redesign, skills hiring. Check NTUC's full report.

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• AI fluency training
• Work-study degrees
• Community co-ops
• Career-revisioning programs

Future Outlook: Navigating Skills Evolution

With AI/tech acceleration, proactive upskilling ensures overqualification remains voluntary. Singapore's model—low involuntary rates, rising incomes—positions it well. Higher ed must champion adaptable grads for sustainable growth. Explore career tools at Singapore academic jobs for opportunities.