Fresh grads may earn more, but S’pore has fewer entry-level jobs in 2026: Report

Aon's 2026 Salary Increase and Turnover Study reveals that starting salaries in Singapore may be increasing, but entry-level job opportunities are decreasing. The study surveyed over 1,200 organizations across 20 industries in seven Southeast Asian countries. Entry-level employees in Singapore experienced a 2.5% year-on-year salary increase, while the number of entry-level roles dropped by 3.2% from 2025. This trend is contributing to an increasingly competitive job market for recent graduates.

A joint survey conducted by Singapore's six autonomous universities found that 83.4% of recent graduates secured jobs within six months of their final exams, down from 87.1% in 2024. This downward trend has been ongoing since 2022. Aon's report also indicates a shift in employer expectations for new hires, as AI becomes more prominent in the workplace.

According to Rahul Chawla, a partner and Head of Talent Solutions for Southeast Asia at Aon, companies should redesign graduate roles with a focus on problem-solving, judgment, human skills, and the ability to work effectively with AI. This approach aims to mitigate the risk of creating a future capability gap.

While Singapore saw the slowest growth in wages among Southeast Asian countries, with an increase of 4.1% in 2026, Vietnam led the region with a 6.6% salary rise, followed by Indonesia at 5.4%. In Singapore, the Retail & Hospitality sector experienced the highest salary increase at 4.5%, while Life Sciences & Medical Devices and Technology sectors grew by 4.3% and 4.2%, respectively.

Financial services had the highest involuntary turnover rate at 8.1%, followed by Technology at 5.7% and Consulting, Business & Community Services at 4.9%.

As AI continues to reshape the job market, several banks, including DBS and Standard Chartered, have announced job cuts. Aon's study revealed that leadership and people management skills were the most in-demand, chosen by 49% of organizations, while data and analytical skills, as well as AI and automation skills, were equally sought after at 48% each. Companies that invest in continuous and targeted upskilling are positioning themselves for success in the face of evolving job requirements.