Among those who turned down job offers, nearly a third did so because it didn’t pay enough
If you’ve just graduated and are stressed about your starting salary, you’re not alone.
According to a CNA report, a Ministry of Manpower (MOM) survey of residents aged 22 to 28 found that graduates across most disciplines are earning less than they expected when entering the workforce.
And with global uncertainty still looming, analysts are telling fresh grads to manage their expectations—or risk sitting on the job hunt longer than they’d like.
How big is the salary gap?
CNA cited figures from MOM to show the gap between what fresh grads expected to earn and what they actually took home.
IT graduates were among those with the highest expectations at S$6,000, but averaged S$5,150—a $850 shortfall. Engineering sciences grads expected S$5,000 and landed at S$4,450.
The disparity was even larger among business administration graduates, who expected S$5,000 but earned approximately S$4,000. Graduates in natural and mathematical sciences also saw one of the widest gaps, with expected salaries of S$5,000 compared to actual earnings of S$3,700.
Only a handful of disciplines met or exceeded expectations.
Law graduates earned an average of S$7,500 despite expecting S$6,500, while education graduates earned S$4,000 against expectations of S$3,800. Fine and applied arts graduates reported earnings that matched expectations at S$3,500.
Low salaries remain the top reason for offer rejections
MOM’s survey also shed light on why some graduates turn down job offers.
Among university graduates who rejected an offer, nearly one-third (30.6%) cited low pay as the main reason.
Another 26.7% said they were holding out for better opportunities, while 11.3% were uninterested in the role itself. Around 10% pointed to unsuitable workplace environments, and 6.1% said the jobs lacked clear career progression.
Professor Lawrence Loh from the NUS Business School told CNA that graduates’ emphasis on salary reflects Singapore’s rising cost of living.
He noted that many young professionals want to secure the highest possible starting salary because future pay increments can be difficult to obtain. A stronger starting point, he said, provides better long-term earning potential and career mobility.
While MOM expects wages to continue rising, the ministry noted that employers are taking a more cautious approach to salary increases due to global economic uncertainty and inflationary pressures.
Hiring conditions are becoming more challenging
That said, analysts also told CNA that graduates may have to “taper down their expectations” or risk delaying their entry into the workforce.
Anurag Garg, country lead at recruitment firm Michael Page, said prolonged job hunts could leave candidates frustrated and potentially cause them to miss out on suitable opportunities.
On the employer side, companies competing for top talent may encounter higher rates of offer rejections, which can lengthen hiring timelines.
Garg added that mismatched expectations could also contribute to underemployment, where workers take on roles that do not fully utilise their skills and qualifications.
As hiring conditions become more challenging, analysts say both employers and graduates will need to strike a balance between compensation expectations and market realities.
- Read other articles we’ve written on Singapore’s job landscape here.
Featured Image Credit: The Recruiter
