MOM and NTUC studies: Overqualification in Singapore below high-income countries' average and largely voluntary
Overview
1. The Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC) have released a pair of complementary studies on underemployment in Singapore. Both studies utilise the framework established by the International Labour Organization (ILO) for qualification-related underemployment, or overqualification.1 This is one dimension of underemployment, which refers to situations in which the qualification level of a person in employment is higher than that required to perform the job.
2. These studies broaden our understanding of underemployment beyond the more established time-related underemployment measure.2 MOM’s study adopts an internationally comparable and objective measure of overqualification to enable monitoring using labour force survey data3 and benchmarking against other countries. NTUC’s study additionally examines self-assessment indicators such as skills-related and field-of-study mismatches to offer a more holistic perspective.4
3. Overall, the overqualification rate in Singapore remains below the average rates for high-income countries such as the United States, Finland, the United Kingdom and Switzerland. Overqualification tends to be more prevalent in high-income countries with higher levels of educational attainment, and it is no different in Singapore. However, despite Singapore having a higher share of tertiary-educated workers than other high-income countries, our overqualification rate is lower.
4. In Singapore, the vast majority of overqualification is voluntary, due to workers choosing roles that better align with their aspirations, work preferences or life circumstances, even where these jobs do not fully utilise their formal qualifications. While there are some involuntarily overqualified workers in Singapore, they make up just 1.7% of the resident workforce.
5. These studies shed light on where there may be under-utilisation of human capital, but need to be taken in the context of a fast-changing world with shortening half-lives of skills. The skills and knowledge acquired in tertiary education must be refreshed by new skills and experiences, including those acquired in workplaces. The Government and tripartite partners will support Singaporeans on their lifelong learning and career journey.
Key Findings
Overqualification is commonly observed in high-income countries5
6. High-income countries typically have a larger proportion of tertiary-educated workers and correspondingly higher overqualification rates. Singapore’s overqualification rate remains below the high-income average (19.4% compared with 21.6%). This is despite Singapore having a higher share of tertiary-educated workers in its workforce, rising from 51.6% in 2015 to 64.0% in 2025, compared with an average of 41.2% across high-income countries. This reflects Singapore’s continued creation of high-skilled jobs to support a more educated workforce, with the increase in overqualification remaining moderate and in line with international patterns.
Most overqualification is voluntary
7. According to MOM’s study, about nine in ten overqualified workers (or 17.7% of the resident workforce) were voluntarily overqualified. These workers chose roles below their qualification level due to personal preferences such as flexibility, work-life balance, or transitional career choices, rather than inability in finding suitable jobs. A small share of the workforce (1.7%) was involuntarily overqualified, and this has remained low and stable at below 3.0% over the past decade, indicating limited structural mismatch in the labour market.
8. Similarly, NTUC found that most overqualification in Singapore is voluntary, reflecting the broader range of factors shaping career decisions today. Workers may choose less demanding roles, fewer working hours, or different career pathways to better align with personal priorities, including family responsibilities or interests outside of work. The findings also reflect evolving work arrangements, including increased demand for flexibility and remote work, as well as the emergence of new career pathways. According to NTUC’s study conducted with 1,100 Singapore Citizens and Permanent Residents in October 2025, the most prevalent underemployment among employed respondents arises from education field-job mismatch (31.4%), followed by qualification-job mismatch6 (23.0%), skills-job mismatch (22.5%), and qualification-occupation mismatch (20.3%). The share of voluntary underemployment reflects the changing nature of work, such as a desire for increased flexibility and remote work.
Tertiary graduates continue to see favourable employment outcomes
9. Median gross monthly income of full-time employed tertiary graduates rose from $5,800 to $7,605 over the past decade. Starting salaries of fresh graduates from local Institutes of Higher Learning have also increased over the same period. Taken together, these trends indicate that the labour market has continued to absorb a growing pool of tertiary-educated workers, with overall employment outcomes remaining favourable.
Employers prioritise skills and experience over qualifications, with mismatches emerging in specialised roles
10. Consistent with these findings, employers place greater emphasis on skills and experience than on formal qualifications. In 2025, academic qualifications were not the primary consideration for 79.6% of vacancies. Instead, employers prioritised relevant experience (48.2%) and skills and abilities (20.1%). This indicates that differences between workers’ qualifications and job requirements do not necessarily translate into hiring disadvantages.
11. Where hiring challenges arise, they are less about qualification levels and more about whether workers possess the specific skills required. While overall hiring conditions have eased, skills mismatches in specialised PMET roles have become more pronounced. The share of PMET vacancies unfilled for at least six months rose from 14.4% in 2024 to 16.0% in 2025. Employers report difficulties filling roles requiring specialised technical expertise, such as data scientists, teaching and training professionals, and civil engineers. This indicates that hiring frictions are increasingly driven by skills specificity rather than qualification mismatches.
Evolving skills needs highlight the importance of continued workforce development
12. Nearly a quarter of employers (24.3%) also reported experiencing skills gaps in their workforce. These gaps resulted in increased workloads for other staff (49.9%) and difficulties in meeting quality standards (41.3%), alongside missed business opportunities and challenges in adapting to technological change.
13. Taken together, the findings point to differences in perspective between workers and employers. While a segment of workers report being in roles that do not fully utilise their qualifications, employers continue to face challenges filling roles requiring specific skills. This suggests the key issue is not excess qualifications per se but ensuring that workers’ skillsets remain aligned with evolving job requirements.
Addressing Overqualification
14. NTUC Assistant Secretary-General Patrick Tay said, “Many workers are making deliberate career decisions that prioritise flexibility, fulfilment, or life-stage needs. This reflects a labour market that offers diverse pathways rather than one that is structurally misaligned. A dynamic labour market must offer both flexibility and security. Against this backdrop, it is important to continue examining underemployment in Singapore, to better understand where gaps remain and how workers’ needs evolve across different life stages. NTUC will continue working closely with tripartite partners to ensure the labour market remains flexible and inclusive, while workers are trained and supported to make career choices without the anxieties caused by job insecurity.”
15. MOM Deputy Secretary (Workforce) Kenny Tan said, “The overqualification rate in Singapore is lower than that in other high-income countries. Nevertheless, we are committed to empowering every Singaporean to access good jobs that match their human potential. Both workers and employers have their part to play. Education and qualifications provide a good grounding, but skills must be continuously honed. Workers should embrace lifelong learning and new job opportunities. Employers need to recognise that workers have different needs at different life stages. They should redesign work and workplaces to address these needs in order to attract, motivate and retain talent. The new Skills and Workforce Development Agency will bring together our training, employment facilitation and job redesign capabilities to support workers and employers.”
16. Increasingly, employers are prioritising skills and relevant experience over formal academic qualifications. At the same time, some workers may be unaware of roles that better match their skills, aspirations and preferences. To support better alignment between skills and job roles in Singapore, the Government will continue to strengthen efforts across agencies and partners, including MOM, the Ministry of Education (MOE), Workforce Singapore (WSG), SkillsFuture Singapore (SSG) and NTUC, in the following areas:
a. Strengthening reskilling and upskilling pathways
Across agencies and partners, we will continue to equip workers with up-to-date skills, including building AI fluency across the workforce. The Government encourages skills-based hiring, and reskilling helps address skills atrophy, reducing both involuntary and voluntary overqualification.
i. WSG and SSG offer programmes such as Career Conversion Programmes (CCPs) and the SkillsFuture Career Transition Programme (SCTP) to help workers reskill into growth areas. Union members can tap on NTUC’s Union Training Assistance Programme (UTAP) for course subsidies.
ii. The SkillsFuture Level-Up Programme (SFLP) supports mid-career Singaporeans aged 40 and above with additional credits, subsidies and training allowances to pursue substantive reskilling.
iii. SkillsFuture Work-Study Programmes, developed by the Institutes of Higher Learning (IHLs) in collaboration with companies, provide graduates with opportunities to combine further training with on-the-job experience.
b. Enhancing career guidance and job matching
MOM empowers individuals through Career Health SG to make better-informed career decisions. Job matching is enhanced through the Careers & Skills Passport (CSP), which consolidates government-verified data on individuals’ training, education and employment history.
The upcoming merger of WSG and SSG will create a single touchpoint for training, career guidance and job opportunities. By integrating career and skills data, the new statutory board, the Skills and Workforce Development Agency, will provide clearer visibility of job opportunities and pathways.
NTUC’s e2i (Employment and Employability Institute) complements these efforts by providing job matching, career coaching and skills advisory.
c. Strengthening industry-relevant education
Institutes of Higher Learning (IHLs) work closely with industry partners to equip students with industry-relevant skills. IHLs partner industry to design, deliver and assess curricula, and provide exposure through internships and industry-commissioned projects.
In addition to technical competencies, MOE and IHLs have strengthened LifeSkills delivery to develop critical thinking, innovation, and collaboration skills.
17. NTUC recommends and calls on tripartite partners to consider support to meet workers’ needs at different life stages:
i. Targeted support for early-career individuals and fresh graduates as jobs and aspirations evolve
ii. Enhanced employability through multi-skilling
iii. Development of a hub to facilitate the pursuit of social entrepreneurships and passions
iv. Community-based employment co-ops to create collective employment opportunities
v. Development of a Career-Revisioning programme to facilitate future transition to next phase of career
vi. A multi-strategy approach to enhance support for working parents and caregivers – pay-per-use childcare services and stronger organisation culture
vii. Expanding the official measure of underemployment in Singapore to reflect the underemployment situation in Singapore. A more holistic approach that captures skills, qualifications, and education field mismatches offers a more nuanced snapshot of the workforce.
18. Employers are encouraged to support workforce development and enable employees to maximise their potential:
i. Employers are encouraged to redesign jobs to better retain talent with different work-life needs. The Tripartite Guidelines on Flexible Work Arrangement Requests (TG-FWAR) sets norms and expectations on flexible work arrangement requests, for employers and employees to arrive at mutually beneficial arrangements. MOM and NTUC support employers to redesign jobs to accommodate flexible work arrangements.
ii. The Singapore Opportunity Index (SOI) also features exemplary companies which have progressive workplace practices that are shaping outcomes like pay, progression and retention. This enables employers to make sharper talent decisions while helping individuals identify organisations that align with their career aspirations. More information on the SOI can be found at https://www.singaporeopportunityindex.sg/.
For More Information
19. MOM’s report, “Occasional Paper on Overqualification in Singapore 2025” is released by the Manpower Research and Statistics Department, Ministry of Manpower, and is available online at stats.mom.gov.sg. NTUC’s report, “Research Study on Underemployment in Singapore” is a research partnership between NTUC and Lee Kuan Yew Centre for Innovation Cities at the Singapore University of Technology and Design (SUTD) and is available online at https://www.ntuc.org.sg/uportal/resource-hub/all-reports/underemployment-in-singapore.