SINGAPORE: Singapore’s workforce looks highly qualified on paper, but many are working below that level by choice.
A joint study by the Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC), released on 14 April 2026, found that 19.4% of resident workers in 2025 were overqualified for their roles. That works out to nearly one in five.
Yet the headline number tells only part of the story. Most of these workers are not stuck; they actually opted in.
Most job overqualification is by choice
About nine in 10 overqualified workers fall into this work-voluntary group. They chose roles that better suit their needs, even if it means not using their full academic qualifications.
These decisions are often practical as workers prioritise job stability, meaningful work, or flexible hours. Some are even switching careers. Others are balancing family or easing into retirement.
Only 1.7% of workers are overqualified because they couldn’t find suitable jobs. That figure has stayed low for years, suggesting the labour market is not fundamentally broken.
NTUC Assistant Secretary-General Patrick Tay said these patterns point to a workforce making deliberate choices, shaped by life stage and personal priorities, rather than being forced into poor matches.
Overqualification is lower than in other rich countries
Singapore’s overqualification rate remains below the 21.6% average observed in other high-income economies such as the United States and the United Kingdom.
This stands out because Singapore has a more educated workforce. About 64% hold tertiary qualifications, compared with around 41% in similar economies.
In simple terms, more people are educated, but fewer are mismatched.
The studies suggest this shows a labour market that continues to create skilled roles, even as education levels rise.
Skills matter more than degrees now
Another change is happening silently in hiring. In 2025, academic qualifications were not the main factor for nearly 80% of job openings. Employers placed more weight on experience and specific skills.
At the same time, companies still struggle to fill specialised roles. Jobs like data scientists, civil engineers, and training professionals remain hard to hire for.
About 24.3% of employers reported skills shortages. These shortages lead to heavier workloads and strain on teams. This, in turn, creates a curious split: some workers feel underused, while employers still cannot find the right people.
Younger workers feel it more
Overqualification is more common among younger workers, especially those early in their careers.
More than a third of involuntarily overqualified workers are under 35. Many are still building experience before moving into roles that match their qualifications.
Older workers show a different pattern. Those aged 60 and above are more likely to step into less demanding roles by choice, often as they transition toward retirement.
Salary still trending up for graduates
Despite concerns, graduates are still seeing solid outcomes. Median monthly income for full-time tertiary graduates rose from S$5,800 to S$7,605 over the past decade. Starting salaries have also climbed.
This suggests the employment ecosystem is still absorbing graduates, even if their first job does not fully match their qualifications.
Workers aren’t just chasing titles or high pay
The findings change the conversation. Overqualification is often framed as a problem, but in Singapore’s case, it looks more like a trade-off.
Workers aren’t just chasing titles or high pay. They are choosing roles that better fit their lives.
At the same time, employers are moving away from paper qualifications and focusing on skills that can be applied right away.
MOM Deputy Secretary (Workforce) Kenny Tan said the key is to keep skills up to date, while employers rethink job design to attract and retain talent.
Where the real work begins
So this is less about fixing a broken system and more about keeping it aligned. Workers need to keep learning because skills fade faster than before.
Employers need to offer roles that fit real lives, such as flexible hours, clearer progression, and meaningful work.
An academic degree still opens doors, but what keeps them open is how well those skills stay relevant. That, more than any statistic, is where the real work begins.
Read related: Singapore job market shifting toward skills-based hiring over degrees
