‘So tell me again why is a degree important?’ netizen asks after expert says more educated, higher-skilled workers are at higher risk of retrenchment

SINGAPORE: Netizens were prompted to question the importance of having a degree after an expert recently said that more educated, higher-skilled workers are at higher risk of retrenchment.

Unlike the traditional notion that one needs to study hard and get a degree to secure a stable future, retrenchment trends in recent years suggest that higher qualifications may no longer offer the same level of job security as before.

“One might have traditionally thought that high education and skills lead to both job security and a good career path, but with high specialisation and seniority, it also becomes very difficult to find comparable jobs if there is retrenchment, especially if it is a wider industry trend,” Singapore University of Social Sciences Associate Professor Walter Theseira told Channel News Asia (CNA).

In the latest quarterly labour market report released by the Ministry of Manpower (MOM) on Monday (June 15), retrenchment incidence among degree holders rose from 2.6 to 3.1 per 1,000 resident employees. Workers in their 50s also recorded the highest retrenchment incidence across age groups, rising from 2.8 to 3.1 per 1,000 resident employees.

The labour economist also pointed out that retrenchment happens when organisations have excess staff, rather than when they struggle to hire and retain workers. This means jobs that are more in demand may paradoxically face higher retrenchment risks than those employers find harder to fill. This also explains why higher-skilled workers find it harder to re-enter the job market after getting retrenched compared to those who are less skilled.

In Q1 2026, degree holders recorded a re-entry rate of 58.3%, lagging behind the overall re-entry rate for retrenched resident workers at 60.7%.

Assoc Prof Theseira’s comments sparked discussion online, with some Singaporeans questioning their long-held belief that a degree guarantees job security.

One commenter asked: “So tell me again why is a degree important?”

Another said, “[We] push our kids since young to compete against their peers. Funnel them in practical fields. Get them to study so hard only to tell them this. All that sacrifice for mediocre result.”

While a third added, “Singaporeans were sold the same script for decades. Study hard, get degree, get stable job, buy flat, start family. Now the degree no longer guarantees security, the flat is expensive, and starting a family feels risky. Then people still wonder why everyone is so cynical.”

Still, Assoc Prof Theseira noted that other factors could also come into play, such as lower-skilled jobs being less desirable because they tend to have lower pay, as well as jobs like being bus captains, which may offer higher pay but don’t attract workers as much due to challenging working conditions. /TISG

Read also: ‘Where’s the urgency when it comes to making sure ordinary citizens can actually keep their jobs?’ netizen asks after friend in tech gets laid off over the phone