Singapore struggles to move past degree-first hiring model: report

Six in ten believed a degree was less important for securing a job today than 20 years ago.

Despite a decade of policy effort and extensive infrastructure, Singapore is still struggling to transition from a qualifications-first model to a truly skills-powered economy, according to a new working paper published by the Institute for Adult Learning (IAL).

The report, Skills-First: Are We There Yet?, identified five structural inefficiencies that continue to obstruct systemic change: signalling failures, coordination deficits, risk asymmetry, measurement gaps, and cultural resistance.

Whilst Singapore has taken bold steps to tackle these challenges, the authors argue that “there is more work to be done in the five structural gaps in order to achieve a skills-first society.”

One of the most persistent obstacles is signalling. Despite widespread acknowledgment that skills matter more than ever, employers still default to academic qualifications.

The report noted that “six in ten professionals in Singapore believed a degree was less important for securing a job today than it was 20 years ago,” but hiring practices remain slow to shift.

A 2024 study cited in the report found that for every 100 job postings in Singapore that removed degree requirements, “fewer than four additional candidates without degrees were actually hired.” The authors conclude: “Owing to these signalling barriers, progress in recognising skills as an alternative to qualifications in Singapore has been slow.”

Singapore has built one of the most advanced skills infrastructures in the region. Initiatives like the national Jobs-Skills Taxonomy, Skills Profiling Tools, and SkillsFuture Credit have been deployed to support both individual and enterprise reskilling. Yet, according to the report, “Singapore does not have the silver bullet to attain the visioned skills-powered economy.”

The issue is not a lack of tools but a lack of coordination and trust in alternative credentials. Whilst the Skills Framework and Jobs-Skills Portal offer clarity on needed skills, the report pointed to a “lack of consistent labour market forecasting” and fragmented data ecosystems that “make it difficult to develop a shared awareness of… skills inventory of the workforce.”

The report argued that cultural resistance may be the hardest nut to crack. “Credentials serve more as indicators of cognitive capacity or trainability than of job-specific skill,” the authors wrote, noting that employers tend to replicate their own credential pathways when hiring.

Workers themselves often default to degrees as a safer bet, despite government incentives like the SkillsFuture Credit. “Individuals may be reluctant to stake their career progression on skill-based signals, even when such mechanisms are technically available and… offer a notionally superior return on investment.”

Whilst applauding Singapore’s policy vision, the paper cautioned against piecemeal fixes. “The five structural inefficiencies… are not isolated problems but mutually reinforcing dynamics.” The authors called for “a coherent system in which recognisable skills and proficiency guide labour market signalling, mobility, productivity, and broader societal value.”