As the job market tightens, Singapore’s fresh graduates increasingly rely on the GRIT traineeship programme, but face low pay and social stigma. Applications have fallen sharply despite government subsidies, while employment rates decline and salaries stagnate.
Singapore's fresh graduates are finding it increasingly difficult to secure permanent employment as the job market tightens. Since 2024, the competition for entry-level positions has intensified, leading many to consider alternative pathways.
Among these is the government-subsidized Graduate Industry Traineeships (GRIT) programme, which offers a monthly allowance of S$1,800 to S$2,400. Despite being designed to help graduates gain work experience and boost employability, the programme carries a stigma, as some view it as a last resort for those who cannot find jobs.
Graduates have reported feeling ashamed or having to eat humble pie when applying for GRIT, and the allowance is notably low-less than half of the median starting income for graduates and about two-thirds of a McDonald’s management trainee salary, which only requires a pre-university diploma. The declining appeal of GRIT is reflected in a sharp fall in applications. While the Manpower Ministry attributes this to improved job prospects, graduates cite the stigma and low pay as major deterrents.
One participant recounted being assigned basic tasks like printing and laminating, commensurate with the low allowance. The broader job market has also become more challenging. In 2024, 87.1% of graduates found employment within six months of graduation, but this dropped to 83.4% in the following year. Median monthly salaries have stagnated at S$4,500, and sectors like information and communications have fewer openings.
Singapore is not alone in grappling with post-pandemic economic recovery and disruptions from AI and global conflicts. The situation underscores the need for programmes that truly bridge the gap between education and employment. While GRIT aims to provide a stepping stone, its shortcomings highlight the importance of aligning training opportunities with market needs and fair compensation.
As fresh graduates navigate this tough landscape, policymakers must address both the structural issues in the job market and the perceptions that hinder participation in such schemes
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