The Big Read in short: Job woes for Class of 2020

Each week, TODAY’s long-running Big Read series delves into trends and issues that matter. This week, we look at the job market situation for fresh graduates amid the Covid-19 pandemic. This is a shortened version of the full feature, which can be found here.

SINGAPORE — After graduating with distinctions from the Singapore Management University (SMU) in April, a quantitative finance major who wished to be known only as Ben was eager to make his mark in the financial technology (fintech) industry.

Normally, the 24-year-old who is fluent in both English and Thai and has internship experience at six firms, will be highly sought after.

But these are not normal circumstances.

After sending out more than 20 job applications in the last two months, his job search pretty much drew a blank amid the Covid-19 pandemic which has pummelled economies around the world.

The only offer he received was from a firm where he interned at last year, which offered him a salary that was “way below average” — S$2,800 to be exact.

“When they offered me the amount, I was speechless for a second. That was definitely a big difference in the pay I was expecting,” said Ben, who had expected to get a salary of at least S$3,800.

“I was talking to my former colleagues (at the same firm) who said that a future employer could ask what my last drawn salary was. If they learn that it’s that low, they might not want to offer me more,” he said, citing that as the reason why he put the offer on hold.

Covid-19 is wreaking havoc on the global economy, forcing countries to restrict movements across borders and bringing domestic economies to a standstill as they deal with the different stages of the pandemic.

Like in other countries, job prospects across all sectors have been hit in Singapore, which is expected to experience its worst recession since independence. 

Apart from degree holders, graduates from polytechnics and the Institute of Technical Education (ITE) are being similarly frustrated in their job hunt.

An ITE graduate, who wanted to be known only as Ismail, was given a “lowball” offer of a starting monthly salary of S$1,800 by a construction company.

And this was after he had asked for S$2,100 a month. He did not take up the offer.

“Imagine how much I’ll be bringing home after CPF (Central Provident Fund) deductions,” said the 22-year-old, who is currently working full-time as a GrabFood delivery rider.

“At least I can earn twice the amount when I work as a rider… I just have to work harder and take fewer days off,” said Ismail, who graduated in January.

In total, some 48,500 fresh jobseekers are leaving school and hoping to join the Singapore workforce this year — 26,000 from the five polytechnics, 16,000 from the six autonomous universities and 6,500 from ITE.

NOT A PRETTY PICTURE

At a virtual media interview on May 29, Manpower Minister Josephine Teo said that in March, there were 71 vacancies for every 100 jobseekers. The ratio was 84 to 100 at the end of last year.

She also noted that there have already been instances of job offers rescinded and companies scaling back hiring. In fact, some 150,000 workers have faced pay cuts of more than 25 per cent since March 12.

The plight of this cohort of new workers has not escaped official attention in Singapore, with the Government, businesses and educational institutions themselves coming up with various initiatives to help fresh graduates find jobs or undergo training to acquire relevant skills.

On May 26, Deputy Prime Minister Heng Swee Keat unveiled plans — as part of the Fortitude Budget — to have 21,000 traineeships for first-time jobseekers and another 4,000 for unemployed mid-career workers.

Under the SGUnited Traineeships Programme, S$100 million has been set aside to help fresh graduates acquire valuable industry-relevant experience which, in turn, can give them a firmer foothold in the job market.

Mr Heng also announced that Senior Minister Tharman Shanmugaratnam will chair the newly formed National Jobs Council, which will work towards growing jobs and training opportunities.

Apart from the Government, universities and polytechnics have also rolled out programmes and resources to help their fresh graduates find jobs. These include virtual job fairs and workshops.

SHORT-TERM FIXES: INTERNSHIPS, ODD JOBS

While some fresh graduates have the luxury to chase lofty career aspirations or wait out for replies from companies, there are those who cannot afford to do so.

One of them is Ismail, the ITE graduate who turned to working as a food delivery rider to help his parents support five younger siblings.

“I know that there is no future for me as a food delivery rider but right now, I’m just taking up any jobs that can help pay the bills. I cannot sit around and wait for offers,” said Ismail.

Others have also lowered their job expectations or taken up internships to beef up their resumes.

Ms Teo Yi Ning, 23, had applied to private firms and government organisations for marketing and programme planning positions but received no replies or rejection by most.

Graduating with a degree in Sociology from the National University of Singapore (NUS), Ms Teo managed to secure a six-month internship at telecommunications start-up Toku instead, which she started in mid-May.

“I wanted something in the marketing field and with the possibility of conversion to a full-time job,” she said.

Unfortunately, given the bleak job markets in Singapore and elsewhere, some graduates saw their job or internship offers postponed or rescinded.

Ms Trixie Poh, 23, who was training to become a Singapore Airlines (SIA) crew member had to stop her three-month training programme in March.

The marketing graduate said: “I do feel a sense of dejection, having to put this dream of embarking on this new milestone with SIA to a pause.”

Ms Poh, who graduated from the Singapore Institute of Management last year, has been on unpaid leave since her training halted and is uncertain as to when it will resume.

She is currently working as a temporary contract staff under a Covid-19 relief scheme — part of the Government’s supplementary Resilience Budget unveiled in March — after she was referred to it by SIA.

A NEW PATHWAY: TRAINEESHIPS

During the virtual media interview last month, Mrs Teo said that the Government’s plan to nudge more people to take up traineeships and attachments is part of a new approach to expand employment opportunities in the face of a weak job market.

Noting that jobseekers will continue to outnumber vacancies available, she stressed that the Government must seize “every possible channel of opportunity” and open as many pathways as possible for people to secure jobs. 

With Covid-19 putting a damper on what could have been an exciting start to their next phase in life, many of the fresh graduates interviewed welcomed the initiatives rolled out by the Government, especially the SGUnited Traineeships Programme.

Applications opened on June 1. Asked for the number of traineeship applications over the first week, Workforce Singapore (WSG) said it was not able to provide figures as the applications would need more time to be processed.

The programme, which will last up to 12 months, will provide a monthly training allowance, based on the scope and skills required for the traineeship. The allowance is pegged to 50 to 70 per cent of median starting salaries, according to WSG and the Ministry of Manpower.

The Government will fund 80 per cent of the allowance and the trainee’s host company will pay for the remainder.

Nanyang Technological University (NTU) final-year accountancy undergraduate Charlene Tan, 23, has already applied for traineeships in analyst and operational risk roles at DBS Bank through the programme.

“It's an alternative to finding permanent jobs and for jobs involving risk advisory or management, they usually require a minimum of three to five years of experience. So in the meantime, I can acquire skill sets relating to this field and also broaden my exposure,” she said.

Ms Tan is also currently waiting for a response to her applications to about 10 full-time positions in risk management or valuation roles, mostly at banks and large accountancy firms.

BE OPEN TO TRAINEESHIPS OR INTERNSHIPS, TAP ON ALUMNI NETWORKS: EXPERTS

As prospects for a full-time job dim for many fresh graduates, several career experts told TODAY that they should look for other opportunities — be it an internship or traineeship — in the relevant fields which they wish to pursue, as this will enhance their employability when the storm passes.

Veteran human resource (HR) practitioner Adrian Tan said: “When the market returns to normal eventually, these individuals will be ahead of the pack.”

Agreeing, Mr Adrian Choo, founder of career consulting company Career Agility International, also advised against taking up temporary jobs such as private-hire car drivers as the graduates can “get trapped in it and lose out on (having a) bigger career strategy”.

He said they are not improving their employability and will not have the relevant skills to switch out of the job after the economy picks up.

However, Mr Tan noted that individual circumstances would vary.

“For graduates who are cash strapped, where money is paramount, making S$2 is better than zero dollars,” added Mr Tan, who is the Asia Pacific regional leader of HR solutions and technology firm PeopleStrong.

He also warned graduates to not be too hopeful when taking up internships that they would lead to full-time employment.

“Conversion under normal circumstances is very subjective, more so during a pandemic. The chance is definitely lower,” said Mr Tan.

Both Mr Tan and Mr Choo suggested that graduates turn to school alumni networks for job opportunities.

“Graduates can tap (these) networks to look for jobs, such as their alumni directory or some seniors in university or secondary school who have gone on to work and ask if they have opportunities,” said Mr Choo.

HOLDING OUT HOPE

Despite the obstacles, some graduates whom TODAY interviewed said they remain hopeful of getting the job that they want in the coming months.

Ben, the SMU graduate, is waiting to be interviewed by a technology firm.

He said he expects salary offers to be lower given the pandemic but is confident that his qualifications and experience can fetch him a good starting pay

For some graduates, there is also the option of furthering their studies, thus delaying their entry into the workforce. They are hoping that by then, things will start looking rosy again.

One of them is Ms Muslihah Mujtaba, who graduated with a degree in theatre practice from the University of London’s Royal Central School of Speech and Drama.

The 26-year-old, who has yet to find a job and is currently working as a Foodpanda delivery rider, said: “The job search definitely has discouraged me a lot and shaken my confidence. It makes me feel like I’m not good enough for anything and I know I’m not the only one.”