Singapore graduates may need to lower salary expectations amid economic uncertainty: Analysts

Fresh university graduates in Singapore might need to adjust their salary expectations as wage growth is predicted to be uneven across sectors this year, influenced by global economic uncertainty. A recent Ministry of Manpower (MOM) study, the School-to-Work Transition Study, revealed that graduates across most disciplines received lower salaries than they had anticipated upon entering the workforce.

The 2025 survey polled approximately 2,500 Singaporean resident graduates aged 22 to 28 with bachelor's degrees. It investigated their employment outcomes and early career experiences, including salary expectations, to better understand the transition from education to employment. The study identified low pay as the primary reason for rejecting job offers, cited by 30.6% of respondents. Another 26.7% were holding out for better offers, while other factors included lack of job interest, unsuitable work environments, and limited career advancement opportunities.

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I think it speaks of the fact that they are all very pragmatic – in other words, quite realistic overall.

Analysts suggest these findings reflect the pragmatic priorities of today's young jobseekers. Professor Lawrence Loh from the NUS Business School noted that graduates are "quite realistic overall." He also pointed to the rising cost of living as a potential influence on their expectations. "For graduates, it is very important to start at the point as high as possible, because sometimes wages are sticky… To get (an) increment is quite difficult, so when your starting point is high, it’s easy to move upwards,” Prof Loh explained.

The MOM survey highlighted significant salary gaps for many graduates. For instance, IT graduates earned a median monthly salary of S$5,150 (US$4,020), falling short of their expected S$6,000. Engineering graduates earned S$4,450, below their expected S$5,000, and business and administration graduates received S$4,000 against expectations of S$5,000. Natural and mathematical sciences graduates had a median wage of S$3,700, compared to an expected S$5,000. Only graduates in law, education, fine, and applied arts reported salaries that met or exceeded their expectations.

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Also, for graduates, it is very important to start at the point as high as possible, because sometimes wages are sticky … To get (an) increment is quite difficult, so when your starting point is high, it’s easy to move upwards.