Overqualified & okay with it: More S’poreans are choosing jobs below their paper credentials

1 in 5 Singaporeans are overqualified for their jobs, according to a new MOM study

Singapore workers are better educated than ever, but that doesn’t always translate into the jobs they take.

A new Ministry of Manpower (MOM) study, released on Apr 14, finds that nearly one in five (19.4%) of resident workers held qualifications higher than what their jobs required in 2025, up from 16.3% in 2015.

And most of them chose this path voluntarily, with about nine in 10 underemployed workers—equivalent to 17.7% of the resident workforce—saying they had done so by choice.

Many were motivated by factors such as job stability, opportunities to apply their skills, and more interesting work. Others cited preferences such as better work-life balance and working hours, personal interests, or higher earnings in roles like sales, rather than an inability to find jobs that matched their qualifications.

NTUC Assistant Secretary-General Patrick Tay said many workers are making deliberate career choices that prioritise flexibility, fulfilment, or life-stage needs, reflecting a labour market that offers diverse pathways rather than one that is structurally misaligned.

Despite the rise in overqualification rates, the data suggests it is not driven by a shortage of suitable jobs, The Straits Times reported. Roles requiring tertiary education now account for 64.2% of the job market, closely matching the 64% share of tertiary-educated workers, up from 51.6% in 2015.

Only 1.7% of the resident workforce were involuntarily overqualified: a figure that has stayed below 3% for the past decade, according to MOM’s study, which draws on labour force surveys and international benchmarking. MOM said this suggests a limited structural mismatch in the labour market.

The report also found that overqualification was more common among younger workers, particularly those early in their careers. Among those who are involuntarily overqualified, more than one-third are under 35.

MOM noted that this likely reflects career building, with younger workers gaining experience before moving into better-matched roles later on.

Overqualified tertiary-educated workers tend to cluster in sales jobs, which may offer high earning potential, or in administrative and financial-related roles, where younger workers gain experience in entry-level roles before progressing to higher positions.

Many are also found in clerical roles such as general office clerks and client information clerks, or private-hire car drivers.

For older workers aged 60 and above, voluntary overqualification rises, with some choosing less demanding roles or alternative paths as retirement nears.

Employers are increasingly looking at skills and experience over paper qualifications

The studies also highlighted a shift in hiring trends, with employers increasingly favouring skills and experience over academic qualifications.

In 2025, academic credentials took a back seat for nearly 80% of vacancies. 48.2% of employers prioritised relevant experience, while 20.1% focused on skills instead.

At the same time, employers continue to face difficulties filling roles requiring specialised expertise, such as data scientists, teaching and training professionals, and civil engineers, pointing to skills gaps in the workforce.

These gaps have resulted in increased workloads for existing staff, missed business opportunities and slipping quality standards.

MOM and NTUC pointed out that these findings point to “differences in perspective between workers and employers”. 

“This suggests the key issue is not excess qualifications per se but ensuring that workers’ skillsets remain aligned with evolving job requirements,” MOM added.

NTUC called for expanded worker support across all career stages, with particular focus on early-career assistance, multi-skilling opportunities, and transition programs for those entering new career phases.

• Read more articles we’ve written on Singapore’s job trends here.

Also Read: More S’poreans retrenched in 2025: 14K+ jobs were cut, with PMETs hit hard

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