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Responding to concerns over involuntary overqualification, possible wage scarring, and more, MOM said most cases were voluntary, while also touching on efforts to improve skills matching and mobility.
Concerns about overqualification in Singapore were raised in Parliament across several questions on 5 May, focusing on different parts of the issue.
These included whether workers who are involuntarily overqualified are concentrated by age, sector or qualification level, and how this group progresses over time. MPs also asked about the impact on younger workers, women and lower-income groups, particularly where workers may be in roles below their qualifications.
Another key area of concern was whether workers who take lower-level or part-time roles for caregiving or family reasons face barriers when trying to return to jobs aligned with their qualifications and experience. MPs also questioned whether targeted return-to-work pathways could be strengthened.
Other questions focused on the broader labour market impact, including possible wage scarring, slower career progression, and whether overqualification signals deeper skills mismatch in the economy. MPs also asked how education pathways and career guidance can better align with industry needs, and whether job redesign and flexible work arrangements are sufficient to support skills utilisation.
Responding to the questions in Parliament on 5 May (Tuesday), Minister for Manpower Dr Tan See Leng said 19.4% of the resident workforce was overqualified in 2025, compared to 21.6% in other high-income countries.
It added that about nine in 10 of these cases were voluntary, meaning most workers in overqualified roles had chosen them due to personal preferences, caregiving responsibilities or career exploration.
The remaining share comprised involuntary overqualification, which Minister Tan said was 1.7% of the resident workforce, a figure that has remained stable over the past decade.
Involuntary overqualification concentrated among younger workers
Minister Tan noted that involuntarily overqualified workers tend to be younger and tertiary-educated, reflecting early career transitions where individuals may initially take roles that do not fully utilise their qualifications before moving into more aligned positions.
The sector with the highest number of involuntarily overqualified workers was transportation & storage.
The Minister added that it does not currently track long-term outcomes of overqualified workers as a separate group, including wage scarring or career progression over time.
However, broader data shows continued income growth, with median income for full-time employed tertiary graduates rising from S$5,800 to S$7,600 over the past decade, suggesting overall upward wage progression despite early mismatches.
Education-to-work alignment and lifelong learning strengthened
To address skills mismatch, Minister Tan highlighted stronger coordination between education and industry.
Institutes of Higher Learning are working with employers to ensure graduates are equipped with industry-relevant skills and technical competencies aligned to labour market needs.
Beyond formal education, lifelong learning remains a central pillar of workforce strategy, aimed at improving skills utilisation and reducing mismatch over time.
This is being supported through the planned merger of Workforce Singapore and SkillsFuture Singapore into the Skills and Workforce Development Agency, which will consolidate training, career guidance, and job matching into a single platform.
Mid-career support and caregiver return pathways expanded
On this point, Minister Tan said that efforts by SWDA and NTUC’s Employment and Employability Institute (e2i) will also build on existing upskilling and reskilling workers transitioning between roles or re-entering the workforce.
These include Career Conversion Programmes, the Mid-Career Pathways Programme, and the SkillsFuture Career Transition Programme, which support reskilling and job mobility.
For caregivers returning to work, Workforce Singapore’s herCareer initiative provides targeted career guidance and training support, particularly for those resuming careers after a break.
Flexible work and job redesign to improve skills use
To support workforce diversity and improve skills utilisation, Minister Tan pointed out that MOM and tripartite partners are expanding flexible work arrangements and job redesign efforts.
Through the SkillsFuture Workforce Development Grant (Job Redesign+), employers are supported in restructuring roles to better match skills while accommodating flexible working arrangements.
Data cited by MOM and NTUC noted that adoption of flexible work arrangements has increased significantly, with about 70% of firms offering them in 2025, up from 50% in 2019.
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