AI's impact on fresh grad hiring 'uncertain' for now but IHLs are readying students: MOM


PUBLISHED ONFebruary 04, 2026 6:06 AMBYSean LerThe specific impact of artificial intelligence (AI) on entry-level professional, managerial, executive, and technical (PMET) jobs remain uncertain, with employment rates of fresh graduates from Institutes of Higher Learning (IHLs) remaining broadly stable over the decade.
This update was given on Tuesday (Feb 3) by Senior Parliamentary Secretary for Manpower Shawn Huang in response to a parliamentary question by NMP Assoc Prof Terence Ho.
Assoc Prof Ho had asked whether the Government has recorded a slowdown in the hiring of fresh graduates by employers in certain sectors due to the adoption of AI.
He also asked if the Ministry of Manpower (MOM) has plans to help boost the employability and opportunities available to fresh graduates facing such challenges.
In his response, the senior parliamentary secretary said that the specific impact of AI adoption on entry-level PMET jobs remains uncertain.
Citing figures from the past decade, Huang explained that employment rates of fresh graduates from IHLs have remained broadly stable over the decade, with some year-on-year fluctuations due to cyclical changes.
"These fluctuations reflect a combination of factors, including broader economic uncertainty, geopolitical developments, and changing career aspirations of graduates," he said.
Notwithstanding the uncertain impact on employment figures, IHLs have been working closely with sector agencies and industry partners to keep their curriculum relevant, said Huang.
This is achieved by integrating AI competences, domain-specific training, and core skills such as critical thinking, creativity and communication.
There is also the AI Apprenticeship Programme, which provide students with opportunities to apply AI skills in real workplace settings.
Huang also encouraged students to remain relevant in the fast-changing environment.
"We will support them to navigate their career pathways. Students and fresh graduates can access education and career guidance services within IHL, as well as career matching and coaching services offered by Workforce Singapore and NTUC's Employment and Employability Institute," added Huang.
In August 2025, the Singapore Government announced that it will be introducing a traineeship programme - Graduate Industry Traineeships (GRIT) - to equip graduates with relevant skills and prepare them for full-time employment.
A 2025 survey found that 90 per cent of polytechnic students got jobs within six months of completing their final exams or full-time National Service.
According to MOM's labour market data, total employment continued to grow in 2025, although it varied across sectors.
Resident employment gains were strongest in financial and insurance services, health and social services, while outward-oriented sectors such as information and communications saw subdued growth amid global economic uncertainty.
Fresh graduates remain in demand, with entry-level vacancies rising to 39,000 in September 2025, up from 26,000 a year earlier. Around four in 10 of these openings are in growth sectors such as information and communications, financial and insurance services, and professional services, according to MOM.
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