Poly, ITE grads who took up SkillsFuture work-study programmes saw higher wages: Study
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The SkillsFuture work-study programmes give poly and ITE grads the chance to upgrade to a higher qualification while working in a job role related to their field of study.
PHOTO: ST FILE
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SINGAPORE – Graduates from polytechnics and the Institute of Technical Education (ITE) who attended SkillsFuture work-study programmes (WSPs) enjoyed higher wages than their peers who went straight to work, according to a study released on Nov 22.
The study by economists Audrey Ling and Damian Tan found that polytechnic graduates armed with the Work-Study Post-Diploma (WSPostDip) enjoyed a wage premium of around 9 per cent one to two years after completing the programme,
ITE graduates with the Work-Study Certificate (WSCert) enjoyed a wage premium of around 11 per cent one to two years after completing the programme, with the premium sustained over the next two years.
Although poly graduates are eligible for the WSCert programme, the study was not able to examine the wage outcomes of those graduates who completed the WSCert programme due to the small sample size.
The study, which covered WSPostDip and WSCert graduates from the 2018 to 2021 cohorts, found the SkillsFuture WSP has been useful in improving the wage outcomes of poly and ITE graduates.
Going forward, the Ministry of Education will continue to work with sector agencies and the institutes of higher learning to expand and enhance the work-study pathway, especially for in-demand job roles and skill sets, the study report said.
The SkillsFuture WSP aims to give graduates from polytechnics and ITE a head start in their careers by giving them the chance to upgrade to a higher qualification while working in a job role that is related to their field of study.
Under the WSP, individuals are placed with employers where they work full time and draw a salary even as they undergo on-the-job training and classroom learning.
At the end of the WSP, they obtain a diploma or industry-recognised certification.
A key programme under the WSP is the WSPostDip, which is a 12- to 18-month programme that allows polytechnic graduates to obtain an advanced or specialist diploma.
Another key programme is the WSCert, a 12- to 18-month programme that enables poly and ITE graduates to obtain an industry-recognised certificate.
WSP participation is voluntary for both individuals and employers. Those successfully placed on the WSP receive a sign-on incentive of $5,000, while participating employers receive a grant of up to $15,000 per participant to defray training and wage costs.
The WSP is typically available to fresh graduates within the first three years of their graduation from polytechnic or ITE for females, and within three years of completing national service for males. Individuals are eligible to take up a WSP only in an area relevant to their prior polytechnic or ITE field of study.
Singapore’s overall unemployment rate dipped to 1.8 per cent in the third quarter of 2024, as employment accelerated from 15,000 in the second quarter of 2024 to 26,700 in the three months ended September.
Labour productivity also improved, driving overall unit labour cost down to 0.9 per cent in the third quarter of 2024 versus 7.9 per cent a year ago.
Ms Selena Ling, chief economist and head of global markets research and strategy at OCBC Bank, said this should be “welcome music” to businesses, especially small and medium-sized enterprises that are facing elevated costs amid a challenging economic environment.
