SG job analyst: Singapore fresh grads need to ‘taper down’ their salary expectations or risk delaying their entry into the workforce

SINGAPORE: Singapore’s newest graduates are entering the workforce with high hopes and, in many cases, lower-than-expected pay packets.

A recent Ministry of Manpower (MOM) survey, cited by Channel NewsAsia (CNA), found that graduates across most fields are earning less than they anticipated when they first started job searching. The mismatch is prompting analysts to urge young job seekers to be more realistic about salary expectations as hiring conditions become tougher.

The findings also reveal a growing tension between what graduates believe they are worth and what employers are willing to pay in an uncertain economy.

Salary expectations meet market reality

The survey, which covered residents aged 22 to 28, showed noticeable differences between expected and actual starting salaries across several disciplines.

Information technology graduates expected an average monthly pay of S$6,000 but earned about S$5,150. Engineering sciences graduates anticipated S$5,000 but received around S$4,450.

Business administration graduates faced one of the largest mismatches. While many expected S$5,000, average earnings came in closer to S$4,000. Natural and mathematical sciences graduates also saw a sizeable difference, with expected salaries of S$5,000 and actual earnings averaging S$3,700.

Not every discipline experienced disappointment, though. Law graduates exceeded expectations, earning about S$7,500, compared with an expected salary of S$6,500. Education graduates also slightly outperformed expectations, while fine and applied arts graduates generally earned what they expected.

The figures suggest that graduate salary expectations are becoming increasingly disconnected from hiring realities in some sectors.

Low salaries are one of the reasons fresh grads reject job offers

The survey also examined why some graduates walk away from job offers. Low pay emerged as the leading reason. Among university graduates who rejected offers, 30.6 per cent said the salary was not attractive enough.

Others believed better opportunities might be available elsewhere, while some felt the roles didn’t match their interests. Workplace culture and career progression were also factors behind the rejection of offers.

Professor Lawrence Loh, Director of the Centre for Governance and Sustainability at the National University of Singapore (NUS) Business School, said that salary concerns are linked to rising living costs and long-term career planning.

His view was that many graduates see their first salary as an important benchmark because future increments can be harder to secure. A stronger starting point can influence earnings and career opportunities for years to come.

Knowing your value and understanding the market

Analysts say graduates who insist on holding out for ideal salaries may face longer job searches. Anurag Garg, Country Lead at recruitment firm Michael Page Singapore, said that extended job-seeking can leave candidates frustrated and cause them to miss suitable opportunities.

At the same time, employers are facing their own challenges. Companies competing for skilled talent are seeing more offers rejected, which can slow hiring and increase recruitment costs.

The deeper problem may be one of expectations. Graduates want salaries that match their qualifications and rising costs of living. Employers, meanwhile, are navigating inflation, economic uncertainty and tighter budgets.

For Singapore’s newest job seekers, the lesson may be to know your value, but understand the market. The first job doesn’t have to be the perfect job, as building experience, skills and a track record creates more earning power than waiting indefinitely for an ideal offer.