Singapore job market shifting toward skills-based hiring over degrees

SINGAPORE: Singapore’s job market is changing in a gradual but steady way. Most employers are no longer fixated on academic degrees when hiring. What matters now is whether a person can actually do the job.

According to the Ministry of Manpower (MOM) report released on March 20, 2026, academic qualifications were not the main factor in hiring for 79.6% of job vacancies in 2025. This figure has been inching up year by year, and it is starting to reshape how people get hired in Singapore.

More newly created job offers, but a different kind

Singapore’s labour market stayed tight in 2025, with more openings than the year before. About half of all vacancies came from newly created roles, driven mostly by business expansion.

Sectors like information and communications, professional services, and finance led this growth. They tend to require technical skills, adaptability, and proficiency with digital tools.

At the same time, employers appear more open to hiring people without long work histories. About 31.5% of jobs required no prior experience, while 20.2% others required just 1 year.

For fresh graduates and mid-career switchers, this keeps the door open, but the expectations behind that door have changed.

Jobseekers’ skills are now the main criteria

Employers say the shift toward skills-based hiring helps them fill roles faster and access a wider talent pool. It also improves employee performance.

Software development, data analytics, and systems analysis sit at the top, so do problem-solving and adaptability.

These are the same capabilities tied to jobs in technology, finance, and engineering. They are also the roles most exposed to artificial intelligence (AI), which means workers are expected to know how to use AI tools rather than avoid them.

Hiring is no longer about what someone studied years ago. It is about how fast they can learn and apply new tools right now.

Some jobs are still hard to fill

Despite better matching between employers and workers, some roles remain stubbornly difficult to fill.

Jobs like software developers, data scientists, and systems programmers continue to face shortages. The main reason is that these roles need specialised skills and relevant experience, which are not easy to find.

While fewer vacancies remain unfilled for long periods overall, hiring for specialised roles is taking more time. Employers are being more careful about fit.

Foreign remote work rises, but local hiring matters even more

Remote-capable jobs are becoming more common. About 22.7% of roles in 2025 could be done remotely, up from the previous year.

At the same time, fewer employers are looking overseas to fill these roles. The share dropped to 16.5%, suggesting a stronger focus on local hires.

This could support workers who need flexibility, such as caregivers. It also shows that companies are finding enough local talent, provided the skills match.

Demand for PMETs remains strong

Hiring plans remain measured, with only about 43.3% of firms expecting to hire in the near term by the end of 2025. Still, early signals in 2026 point to a slight pickup.

Even with restructuring and layoffs in some sectors, demand for professionals, managers, executives, and technicians (PMETs) remains strong. The jobs are still there. The requirements are just more specific.

More workers are turning to SkillsFuture to stay relevant

For Singaporeans, the message is that a degree helps, but it is no longer enough on its own.

Employers are now looking for people who can demonstrate skills, not just list qualifications. This explains why more workers are turning to training programs like SkillsFuture to stay relevant.

It also explains why hiring is starting to feel different. A portfolio, project, or hands-on experience can now carry as much weight as a certificate.

The sensible approach is to keep learning

The shift in the hiring process does make sense, as businesses need people who can contribute from day one, especially in fast-moving sectors.

But there is a practical middle ground. Degrees still provide structure and foundation, while skills bring that knowledge to life.

The sensible approach is to keep learning, keep building real abilities, and don’t rely on a single pathway. The system may still value paper credentials, but the market is already moving ahead.