From Traineeships to AI Readiness: How the Singapore Government is Supporting Fresh Graduates in 2025

CareerSeptember 05, 2025 09:00

Graduating into today’s job market is not without challenges. With rising global uncertainty and cautious hiring sentiment among employers, many young professionals in Singapore are understandably anxious about securing their first role. Yet there is good news: the Singapore Government has stepped up with strong initiatives to support fresh graduates — from government-funded traineeships to long-term policies preparing the workforce for an AI-powered economy.

For graduates, this means more pathways to gain experience, build skills, and position themselves competitively. For companies, it signals a renewed commitment by the state to ensure a steady pipeline of young, work-ready talent.

The Current Job Market for Fresh Graduates

According to MOM data, Singapore’s resident employment rate for university graduates has dipped slightly in 2024–2025, reflecting slower global growth and cautious hiring among companies. CNA surveys also show that more than 1 in 4 fresh graduates take longer than six months to secure full-time work, often due to mismatched skills or limited openings in preferred industries.

At the same time, the June 2025 labour market update reported a 2.1% increase in overall job postings, suggesting that hiring is rebounding in some sectors such as technology, healthcare, and green jobs.

This mixed outlook explains why government initiatives are so critical — they give young professionals the opportunity to bridge skill gaps and gain practical experience while waiting for the market to recover.

Govt-Funded Traineeships: 800 Places Starting October 2025

In response to graduate concerns, the Ministry of Manpower (MOM) and partner agencies have announced up to 800 government-funded traineeship roles, set to begin in October 2025. These will be hosted by leading firms such as Grab, Micron, and OCBC, as well as SMEs across diverse industries.

Key features of the programme include:

  • Structured learning and mentorship with host companies.
  • 6–12 month placements providing hands-on industry experience.
  • Government stipends to offset costs, ensuring graduates receive income support while gaining exposure.

Dr Tan See Leng, Minister for Manpower, has also stated that the Government is prepared to expand support if the job market worsens, including scaling up traineeship slots or introducing targeted assistance for graduates in hard-hit sectors.

Preparing for the Future: AI and Skills Development

Beyond immediate traineeships, Singapore’s leaders are focused on ensuring the workforce remains competitive in a rapidly digitising economy. At the National Day Rally 2025, Prime Minister Lawrence Wong pledged a “people-first” approach as Singapore embraces AI, balancing innovation with job creation.

For fresh graduates, this means two things:

1. AI will create new opportunities – roles in data, cybersecurity, AI operations, and digital ethics are expected to grow.

2. Upskilling is non-negotiable – graduates need to continuously develop future-ready skills, with SkillsFuture and industry partnerships playing a central role.

By linking short-term traineeship opportunities with long-term AI-driven strategies, the Government is giving graduates a runway to adapt to the changing economy.

Why This Matters to Employers in Singapore

Employers should pay close attention to these initiatives. Not only do they reduce hiring risks — by subsidising traineeship costs — but they also give companies early access to ambitious graduates eager to learn. For industries struggling with talent shortages, this is an opportunity to:

  • Trial potential hires before committing to full-time roles.
  • Shape young talent through mentorship and on-the-job training.
  • Strengthen employer branding, showing support for workforce development.

What Fresh Graduates Can Do Now

If you are graduating in 2025, here’s how to maximise these opportunities:

  • Apply early for traineeships to secure a placement in your desired industry.
  • Be open-minded – consider adjacent sectors where skills are transferable.
  • Leverage SkillsFuture credits to build AI literacy, project management, or data analytics skills.
  • Stay resilient – remember that your first role may not be permanent, but every experience builds your portfolio.

FAQ: Government Support for Fresh Graduates

Q1: What are government-funded traineeships?

These are structured work placements subsidised by the Government to help fresh graduates gain real-world experience while earning a stipend.

Q2: How many roles are available in 2025?

Up to 800 placements will be rolled out in October 2025, with the possibility of expansion if market conditions worsen.

Q3: Which companies are participating?

Host companies include large employers like Grab, Micron, and OCBC, as well as SMEs across multiple sectors.

Q4: Will AI take away graduate jobs?

Not entirely. While AI will automate routine tasks, it will also create new, higher-value roles in digital transformation, data analysis, and green industries.

Q5: What else can graduates do besides traineeships?

Leverage career fairs, SkillsFuture upskilling programmes, internships, and recruitment agency partnerships to broaden opportunities.

Conclusion: A People-First Approach to Jobs

Singapore’s approach to supporting fresh graduates is clear: combine short-term measures like traineeships with long-term investment in AI and skills readiness. This ensures that even in a cautious hiring environment, young professionals have pathways to grow, adapt, and succeed.

For graduates, the message is simple: take advantage of every opportunity, stay adaptable, and keep learning. For companies, this is a chance to mentor the next generation and secure future-ready talent.

The future of work in Singapore will be shaped not just by technology, but by how well we invest in people — starting with fresh graduates.


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