Singapore’s entry-level job market shrinks despite salary growth, data shows

Despite a rise in starting salaries for entry-level workers in Singapore, the number of such positions is declining, highlighting a challenging job market for those beginning their careers, according to new data from Aon, a global professional services firm. In 2026, entry-level salaries saw a 2.5% increase year-on-year, while headcount shrank by 3.2%.

Simultaneously, graduate employment has weakened, with only 83.4% of recent graduates finding jobs within six months of their exams, down from 87.1% in 2024, and a persistent decline since 2022. Aon's research also suggests that AI's growing influence in the workplace is altering the expectations employers have of new entrants. Rahul Chawla, Aon's partner and head of talent solutions for Southeast Asia, emphasized that companies should redesign graduate roles to focus on problem-solving, judgment, human skills, and effective collaboration with AI, rather than reducing entry opportunities, which could lead to a future capability gap.

Aon's annual Salary Increase and Turnover Survey revealed that Singapore's overall salaries increased by 4.1% in 2026, down from 4.3% in 2025 and the lowest growth among Southeast Asian countries. Vietnam had the highest salary growth at 6.6% in 2026, down from 7.7% in 2025. In Singapore, retail and hospitality experienced the highest salary increase at 4.5%, while life sciences and medical devices grew by 4.3%, and technology rose by 4.2%.

The turnover rates varied across sectors, with financial services seeing an 8.1% involuntary turnover, followed by technology at 5.7% and consulting, business, and community services at 4.9%. Several banks, including DBS and Standard Chartered, have announced job cuts due to AI advancements. In response, organizations prioritize investing in continuous upskilling to prepare for the new roles AI is creating.

Despite a rise in retrenchments, the number of job vacancies dropped in June, reflecting a decrease in vacancies for professionals, managers, executives, and technicians (PMETs) in sectors like financial services and information and communications. Nonetheless, entry-level PMET vacancies remained stable and substantial, accounting for 45.3% of all job openings in June.

The government has also implemented programs to assist fresh graduates in gaining work experience and transitioning to full-time employment, such as the Graduate Industry Traineeships programme, which has seen over 550 out of 800 available spots filled as of June, with the scheme extended to the 2026 graduating cohort.