Youth jobless rate climbs as employers demand day-one readiness

Academic foundations fail to prepare graduates for unwritten workplace nuances, EHL says.

Tensions in Singapore’s graduate job market are being driven less by hiring slowdowns than by structural frictions between employer expectations and early-career readiness, analysts said.

Employers continue to expect job-ready performance from fresh graduates, whilst many young workers struggle with workplace demands that are not captured by academic credentials, Chen Bao, managing director at EHL Hospitality Business School Singapore, told Singapore Business Review.

“Singapore’s education system produces graduates with exceptional academic foundations, who are brilliant on paper,” he said via Zoom.

“However, employers today look beyond technical proficiency; they need new hires who can navigate the unwritten nuances of the workplace,” he added.

The strain is emerging despite stable headline labour indicators. Singapore added 24,800 jobs in the third quarter of 2025, according to the Ministry of Manpower.

Youth unemployment, however, rose to 5.7% in June, signalling uneven outcomes for workers under 30 even as overall employment expanded. Singapore’s third-quarter jobless report did not include a specific youth-only rate.

Data from LinkedIn suggests younger workers are responding differently to this environment than older cohorts. Gen Z reports relatively high satisfaction with their jobs but shows greater willingness to move.

“Sixty-five percent of Gen Z say they’re satisfied with their employment, just behind Boomers at 68%,” Elsie Ng, director of talent solutions for Singapore and Malaysia at LinkedIn, said in an emailed reply to questions. “But they are less likely to stay put because of economic uncertainty.”

Only 27% of Gen Z cited the economy as a reason to remain in their roles, compared with more than 40% of Millennials and Gen X, she said. That confidence has translated into higher mobility, even amongst those who are already employed.

Job security concerns have also intensified in sectors that traditionally absorb younger workers. Retrenchments increased during the quarter, including the sudden closure of Twelve Cupcakes without prior public notice.

The episode reinforced uncertainty within parts of the service sector and sharpened anxieties about career stability. From the employer side, similar gaps surface during the transition from education to work.

Nicole Quiogue Golloso-Kazemi, director of Human resources and corporate communications for Singapore and Hong Kong at McCann, said graduates often struggle to adjust to fast-paced, fluid environments.

“While many young graduates have strong academic foundations, some struggle to adapt to fast-paced, ambiguous work environments,” she said in an emailed reply to questions.

“There are also gaps in applied problem-solving, articulating ideas clearly, and communicating with diverse stakeholders,” she added.

Golloso-Kazemi added that emotional regulation and responsiveness to feedback remain weak points for some early-career hires, affecting how quickly they integrate into teams.

Technology confidence adds another layer to the mismatch. Gen Z is more comfortable using artificial intelligence (AI) tools at work than older cohorts, but that does not always translate into workplace readiness.

Ng said 82% of Gen Zers say they’re comfortable using AI, compared with 77% of Millennials and just over half of Boomers,” Ng said.

“But confidence with tools doesn’t always mean they’re ready for a workplace shaped by AI, which demands a mix of tech know-how and human skills,” she added.

Research from Singapore University of Social Sciences points to misaligned expectations on both sides. A study found that 68% of Singaporeans aged 18 to 35 are either seeking new roles or open to switching jobs, even with high employment levels.

The research showed younger workers prioritise communication skills, whilst employers place greater weight on problem-solving.
Those mismatches shape early-career decisions. Golloso-Kazemi said mobility often reflects limited clarity on development rather than disengagement.

“Many young employees are seeking clearer development pathways, meaningful exposure, and regular guidance,” she pointed out. “They may choose to move on when these are not evident early on.”

Chen linked these pressures to observable behaviour in the labour market, including the rise in graduates juggling multiple roles.
“For many, this is driven by economic necessity,” he said. “A single entry-level salary is no longer sufficient to cover the cost of living in Singapore.”

Ng said frequent movement should not be read as instability. “This isn’t about dissatisfaction,” she said. “It’s about exploration and growth.”

Chen said expectations from employers remain central to the strain. “It is unrealistic to expect fresh graduates to perform immediately at the level of experienced hires.”