Approximately one in three fresh university graduates in Singapore turned down job offers in 2025 because the salaries did not meet their expectations [1].
This trend highlights a growing disconnect between the financial goals of new entrants to the workforce and the current economic reality of slower wage growth. As employers become more cautious due to global economic uncertainty, graduates risk extending their unemployment periods by holding out for higher pay.
Labour market analysts have warned that this gap could hinder career starts. One analyst said that fresh graduates need to moderate their salary expectations given the uncertain economic outlook and modest wage growth across sectors [2].
Despite these rejections, the broader labor market for young adults has not collapsed. Tan See Leng, the Manpower Minister, said that employment rates have remained broadly stable for young graduates aged 25 to 29 [3]. This suggests that while individual graduates may struggle to find a role that meets their specific price point, the overall demand for degree holders remains consistent [3].
Industry leaders also suggest that the nature of entry-level work is shifting. A Singtel executive said during a panel discussion that AI is reshaping entry-level work, and fresh graduates must prepare for a ‘third-year job’ where higher-skill tasks become the norm [4].
Some analysts argue that graduates who refuse offers based on salary risk delaying their entry into the workforce [5]. This contradicts the more optimistic view from the Manpower Ministry, which maintains that there is no broad decline in employment prospects for this demographic [3].
“Approximately one in three fresh university graduates turned down job offers in 2025 because salary expectations were not met.”
The tension between graduate expectations and employer budgets reflects a transitional period in the Singaporean economy. While the overall employment rate remains stable, the shift toward AI-driven roles is changing the value proposition of entry-level degrees. Graduates who prioritize immediate high pay over early experience may find themselves disadvantaged as the 'baseline' for entry-level skills evolves.
