Skills Gaps in Singapore's Workforce: Nearly 50% Say These Cause Increased Workload for Other Staff

Why It Matters

Skills mismatches are eroding productivity and delaying digital transformation, prompting firms to rethink talent strategies and prompting government intervention. The trend also signals a shift toward skill‑centric hiring, reshaping labor market dynamics in the region.

Key Takeaways

• 24.3% of Singapore employers report workforce skills gaps
• 49.9% say gaps increase workloads for other staff
• PMET vacancies unfilled >6 months rose to 16% in 2025
• Overqualification rate 19.4%, below high‑income average of 21.6%
• Median graduate salary rose to S$7,605 (~$5,600) monthly

Pulse Analysis

Singapore’s latest underemployment study underscores a growing disconnect between rapidly evolving job requirements and the current skill set of its workforce. While only a quarter of employers flag gaps, the ripple effects are pronounced: nearly half report heavier workloads for existing staff, and more than 40% struggle to meet quality standards. The data reveal a clear pivot away from formal qualifications toward demonstrable experience and specific competencies, a trend echoed globally as firms prioritize agility over academic credentials.

The shortage is most acute among specialised professionals, managers, executives and technicians (PMET). Vacancies that remain unfilled for six months climbed from 14.4% in 2024 to 16% in 2025, with roles such as data scientists, civil engineers and training specialists hardest hit. Meanwhile, overqualification affects 19.4% of workers—slightly below the high‑income benchmark—yet 90% of those overqualified do so voluntarily, seeking flexibility or work‑life balance rather than being forced by a lack of suitable positions. This nuanced picture suggests that while structural mismatches are limited, the market is increasingly driven by skill specificity.

In response, the government is consolidating training, employment facilitation and job‑design functions under the new Skills and Workforce Development Agency. The agency aims to foster lifelong learning, upskill workers, and help employers redesign roles to attract talent. Coupled with rising graduate salaries—now averaging S$7,605 (≈$5,600 USD) monthly—the policy push signals confidence that Singapore can sustain its high‑skill economy. Companies that invest early in reskilling and flexible work designs will likely mitigate productivity losses and stay competitive in the region’s fast‑moving digital landscape.