Singapore study finds 1 in 5 workers overqualified, but most choose such roles

SINGAPORE, April 15 — A new study has found that nearly one in five resident workers in Singapore holds qualifications above what their jobs require, yet most say they chose these roles voluntarily.

The Ministry of Manpower (MOM) released the findings yesterday, according to reporting by The Straits Times.

The study showed that 19.4 per cent of resident workers were overqualified in 2025.

MOM said that about 17.7 per cent of the resident workforce opted for such roles due to preferences for work-life balance, flexible hours, personal interests or higher earnings in sales-related positions.

Only 1.7 per cent of workers wanted a better-matched job but could not secure one.

A separate study by the National Trades Union Congress (NTUC) and the Lee Kuan Yew Centre for Innovative Cities reported similar findings from a survey of 1,100 residents in October 2025.

That survey found that 22.5 per cent of respondents considered themselves overqualified, and 85.5 per cent said they were underemployed by choice, with many citing responsibilities for young children or older family members.

Overqualification tends to be more common in high-income economies with large tertiary-educated workforces.

Singapore’s tertiary-educated share stood at 64 per cent in 2025, compared with an average of 41.2 per cent across high-income countries.

Despite this, Singapore’s overqualification rate remains below the high-income 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.

MOM said the data indicates that the rise in overqualification is not driven by a shortage of suitable roles.

The share of jobs requiring tertiary education closely matches the proportion of tertiary-educated workers.

Median monthly pay for tertiary graduates rose from S$5,800 to S$7,605 (RM18,026 to RM23,637) over the past decade.

Younger workers aged 34 and below form a larger share of those in overqualified roles.

MOM said these workers typically move into better-matched jobs as they gain experience.

Many overqualified workers are found in sales, administrative, financial and clerical roles, as well as private-hire driving.

MOM noted that some clerical and routine roles may be affected by growing adoption of artificial intelligence.

It said, “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.”

The study also found that employers are placing less emphasis on formal qualifications.

Nearly 80 per cent of job vacancies in 2025 did not list academic credentials as the primary requirement.

Employers cited relevant experience (48.2 per cent) and skills (20.1 per cent) as their top hiring considerations.

MOM said this suggests that credential mismatches do not necessarily translate into hiring disadvantages.

Nearly a quarter of employers reported skills gaps in their workforce, particularly in specialised roles such as data scientists, teaching professionals and civil engineers.

These gaps have led to heavier workloads, missed opportunities and challenges in meeting quality standards.

MOM and NTUC said the findings highlight “differences in perspective between workers and employers.”

They said workers may feel their qualifications are underused, while employers struggle to fill roles requiring specific skills.

Singapore and its tripartite partners are focusing on strengthening skills development and job matching.

Programmes such as career conversion schemes and the SkillsFuture Career Transition Programme aim to help workers move into growth sectors.

The upcoming merger of SkillsFuture Singapore and Workforce Singapore is expected to integrate career and skills data to improve job matching.

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

He added that NTUC will continue working with partners to ensure the labour market remains flexible and inclusive.