Unemployed university graduates in Singapore are increasingly turning to temporary, government-funded positions that pay roughly half the median starting salary, as the local labor market tightens amid artificial intelligence adoption and a broader hiring freeze.

The class of 2026 is finding that traditional entry-level roles are disappearing, forcing many to accept these stopgap gigs as a last-ditch effort to gain experience and stay afloat financially.

The shift underscores a growing structural challenge for Singapore’s economy, where technological disruption is reshaping the entry-level job landscape.

With AI automating many routine tasks previously handled by junior staff, employers are reducing headcount at the bottom of the pyramid.

This trend is compounding the effects of a cautious hiring environment, leaving new graduates with fewer options than in previous years.

The reliance on government-supported temporary work highlights the gap between academic preparation and current market demands.