New studies from MOM, NTUC reveal the state of underemployment in Singapore
Nearly one in five workers in Singapore were overqualified for their jobs in 2025, but the country's overqualification rate remains lower than that of many other rich economies.
This is according to new studies released by the Ministry of Manpower (MOM) and the National Trades Union Congress (NTUC), which looked into the state of underemployment in Singapore.
The studies, which apply an International Labour Organization framework, define overqualification as situations in which the qualification level of a person in employment is higher than that required to perform the job.
In Singapore, the overqualification rate remains below the high-income average, reaching 19.4% compared with 21.6%, according to the findings.
This is despite Singapore having a higher share of tertiary-educated workers in its workforce, rising from 51.6% in 2015 to 64.0% in 2025, compared with an average of 41.2% across high-income countries.
"This reflects Singapore's continued creation of high-skilled jobs to support a more educated workforce, with the increase in overqualification remaining moderate and in line with international patterns," MOM said in a media release.
Voluntary overqualification
Meanwhile, the bulk of overqualification cases were found to be voluntary, according to the findings.
Citing labour force survey data, MOM reported that about nine in ten overqualified workers, or 17.7% of the resident workforce, were voluntarily overqualified.
"These workers chose roles below their qualification level due to personal preferences such as flexibility, work-life balance, or transitional career choices, rather than inability in finding suitable jobs," MOM said.
In contrast, a small share of the workforce (1.7%) was involuntarily overqualified, and this has remained low and stable at below 3.0% over the past decade, indicating limited structural mismatch in the labour market.
NTUC's separate study reached similar conclusions, pointing to changing aspirations and evolving work arrangements, including greater demand for flexibility and remote work.
Understanding, addressing underemployment
The findings are part of a broader attempt to understand underemployment beyond working hours alone.
"These studies shed light on where there may be under-utilisation of human capital, but need to be taken in the context of a fast-changing world with shortening half-lives of skills," MOM said.
According to the tripartite partners, addressing qualification-related underemployment will need continual skill development.
"Education and qualifications provide a good grounding, but skills must be continuously honed. Workers should embrace lifelong learning and new job opportunities," said MOM Deputy Secretary (Workforce) Kenny Tan in a statement.
Employers also have a part in ensuring that Singaporeans land a job that matches their skills.
"Employers need to recognise that workers have different needs at different life stages. They should redesign work and workplaces to address these needs in order to attract, motivate and retain talent," Tan said.
From the labour movement's perspective, some degree of overqualification reflects workers' deliberate choices at different points in their lives.
"Many workers are making deliberate career decisions that prioritise flexibility, fulfilment, or life-stage needs. This reflects a labour market that offers diverse pathways rather than one that is structurally misaligned," said NTUC Assistant Secretary-General Patrick Tay in a statement.
"A dynamic labour market must offer both flexibility and security. Against this backdrop, it is important to continue examining underemployment in Singapore, to better understand where gaps remain and how workers' needs evolve across different life stages."
The government and NTUC said they would continue to monitor overqualification and other forms of underemployment, while expanding reskilling schemes, job redesign efforts and career guidance to help workers align their skills, qualifications and preferences more closely with available opportunities.
