AI Adoption's Impact on Employment of Fresh Graduates

10 Assoc Prof Terence Ho asked the Minister for Manpower (a) whether the adoption of artificial intelligence is prompting employers to slow down the hiring of fresh graduates of Institutes of Higher Learning in certain sectors or occupations; and (b) whether the Ministry has plans to help boost the employability and opportunities available to fresh graduates facing such challenges.

The Senior Parliamentary Secretary to the Minister for Manpower (Mr Shawn Huang Wei Zhong) (for the Minister for Manpower): Mr Speaker, the employment rates of fresh graduates from the Institutes of Higher Learning (IHLs) have remained broadly stable over the decade, with some year-to-year fluctuations due to cyclical changes. These fluctuations reflect a combination of factors, including broader economic uncertainty, geopolitical developments and changing career aspirations of graduates.

While artificial intelligence (AI) is reshaping the labour market, its specific impact on entry-level professionals, managers, executives and technicians (PMETs) jobs remains uncertain.

To prepare graduates for the AI era, IHLs are working closely with sector agencies and industry partners to keep their curriculum relevant, integrating AI competencies, domain-specific training and core skills, like critical thinking, creativity and communication. These efforts are complemented by work-based learning programmes, such as the AI Apprenticeship Programme, which provide opportunities to apply AI skills in real workplace settings.

In this fast-changing environment, our students must continue to remain adaptable. We will support them to navigate their career pathways. Students and fresh graduates can access Education and Career Guidance services within their IHLs, as well as career matching and coaching services through programmes offered by Workforce Singapore (WSG) and the National Trades Union Congress' (NTUC's) Employment and Employability Institute (e2i).

In view of the heightened economic uncertainties in 2025, the Government introduced the GRaduate Industry Traineeships (GRIT) Programme to support young graduates to obtain industry-relevant experience and facilitate their transition to permanent employment.

Mr Speaker: Assoc Prof Terence Ho.

Assoc Prof Terence Ho (Nominated Member): Thank you, Mr Speaker. I thank the Senior Parliamentary Secretary for the reply. I just have two supplementary questions. One is, while I acknowledge that the outlook of the impact of AI is still uncertain, I am wondering, as more sectors and firms adopt AI at scale, whether the Ministry of Manpower (MOM) foresees that the impact on entry-level jobs may then be higher, whether judging from the trends observed in other countries or any incipient trends in Singapore.

The second question is that as many firms and organisations review their work processes to adopt AI, to leverage AI or automation, they are also looking at redesigning jobs. I wonder whether the Ministry will look into providing any support, not just for job redesign, but specifically for human-centric job redesign, such that AI will augment rather than displace human input.

Mr Shawn Huang Wei Zhong: I thank Assoc Prof Ho for his two supplementary questions. For the first supplementary question, whether there are any impact or trends, MOM is currently monitoring and observing as well as getting feedback from the employers. And we will work with the employers closely, together with NTUC to see from a tripartite perspective whether more is needed to help abate these trends.

For the second question, you asked about job redesign. In fact, there are many aspects and provisions that we have done. We are encouraging job redesign. For example, WSG's Jobs Transformation Maps, which help guide employers and workers on how AI actually reshape roles and some of the required skills, enabling early job redesign rather than elimination of positions. There are other things that we are doing as well, in terms of strengthening entry level opportunities, for example, the AI Apprenticeship Programme, under the AI Strategy 2.0, which helps build a pipeline of young AI practitioners through on-the-job training.

The second one is also providing more support for reskilling, for example, the Infocomm Media Development Authority's Tech Skills Accelerator programme, as well as some of WSG's Career Conversion Programmes. So, these are a few programmes that the Member could consider.