1 in 5 S’pore workers overqualified for their jobs, but most are there by choice: Studies

SINGAPORE – Nearly one in five workers in Singapore is overqualified for their jobs, but most of them opted for such roles willingly, according to a new study by the Ministry of Manpower (MOM).

The study, released on April 14, found that 19.4 per cent of resident workers held qualifications higher than what their jobs required in 2025 – up from 16.3 per cent in 2015.

Of these overqualified workers, about nine in 10 – or 17.7 per cent of the resident workforce – made that choice voluntarily, driven by preferences for better work-life balance, more flexible hours, personal interests or better remuneration in sales-related roles.

Only a small group – 1.7 per cent of the resident workforce – wanted a better-matched job but could not find one. This figure has remained stable at below 3 per cent for the past decade, according to the MOM study, which draws on labour force survey data and international benchmarking.

Another study by the National Trades Union Congress (NTUC) and the Lee Kuan Yew Centre for Innovative Cities at the Singapore University of Technology and Design painted a similar picture.

In their survey of 1,100 residents in October 2025, 22.5 per cent of respondents said they are overqualified for their jobs.

Most of them – 85.5 per cent – were underemployed by choice, and they tended to have young or elderly dependants.

Overqualification is generally more common in high-income economies, where a larger share of the workforce is tertiary educated.

In Singapore, 64 per cent of resident workers had tertiary education in 2025, well above the average of 41.2 per cent across high-income countries.

Despite this, the Republic’s overqualification rate of 19.4 per cent remains lower than the high-income countries’ average of 21.6 per cent.

“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,” MOM and NTUC said in a joint press statement on April 14.

The data also suggests that the rise in Singapore’s overqualification rate is not due to a shortage of suitable jobs.

The share of roles requiring tertiary education (64.2 per cent) closely matches the proportion of tertiary-educated workers here. Tertiary graduates also continued to see salary growth, with the median monthly pay rising from $5,800 to $7,605 over the last decade.

“This suggests that the labour market has so far been able to absorb a growing pool of tertiary graduates, whose employment outcomes remain favourable,” said MOM.

The MOM study also noted that younger workers aged 34 and below made up a higher share of those in overqualified jobs. But they eventually move into better-matched jobs as they accumulate work experience.

Overqualified tertiary-educated workers are often found in sales jobs, which may offer high earning potential, or in administrative and financial-related roles, where younger workers gain experience in entry-level roles before progressing to higher positions.

Many are also in clerical roles such as general office clerks and client information clerks. Private-hire car drivers also accounted for a portion of this group.

But MOM noted that some roles within clerical, administrative or routine functions may be affected with the growing adoption of artificial intelligence.

“This trend may accelerate the need for workers to upskill and move into other roles requiring analytical or interpersonal skills, such as advisory services or data-driven strategic planning, for workers to be better matched for the jobs they apply for,” it said.

One way to address overqualification is encouraging skills-based, rather than qualifications-based, hiring among employers, said MOM.

The study found that employers are already placing less emphasis on formal qualifications. In 2025, close to 80 per cent of job vacancies did not list academic credentials as the primary requirement, with relevant experience (48.2 per cent) and skills (20.1 per cent) emerging as the top hiring considerations instead.

“This indicates that credential gaps observed in overqualification data do not directly translate into hiring disadvantages for most workers,” MOM said.

Meanwhile, nearly a quarter of employers reported skills gaps in their workforce, as they face hiring challenges for specialised roles such as data scientists, teaching professionals and civil engineers. These gaps have resulted in increased workloads for other staff, missed business opportunities and difficulties in meeting quality standards.

MOM and NTUC pointed out that these 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,” they said.

To address these gaps, the Government and its tripartite partners are focusing on strengthening skills development and job matching. For example, initiatives such as career conversion programmes and the SkillsFuture Career Transition Programme can help workers reskill into growth sectors.

The upcoming merger of SkillsFuture Singapore and Workforce Singapore to form a new statutory board is expected to integrate career and skills data, providing a clearer view of where job opportunities lie.

Said NTUC assistant secretary-general Patrick Tay: “Many workers are making deliberate career decisions that prioritise flexibility, fulfilment or life-stage needs.

“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.”