Governments must incentivise firms to hire fresh graduates, says Tharman

Deputy Prime Minister Tharman Shanmugaratnam has urged governments across the region to implement incentive schemes that encourage businesses to hire fresh graduates, citing a concerning decline in entry-level positions in the job market.

Addressing the skills gap and employment challenges facing new entrants to the workforce, Tharman emphasised that public-sector intervention is necessary to bridge the gap between academic training and industry needs. Without such measures, graduates risk facing prolonged periods of unemployment or underemployment, potentially constraining economic growth and social stability.

Beyond employer incentives, Tharman stressed the importance of reforming tertiary education systems to prioritise applied learning over traditional classroom instruction. He advocated for greater integration of work-study programmes, industrial attachments, and internships into degree curricula, enabling students to gain practical experience and develop job-ready skills before graduation.

The remarks reflect growing regional concerns about youth employment prospects and the mismatch between graduate qualifications and workplace requirements. Education institutions and policymakers are increasingly recognising that collaborative approaches involving government support, employer engagement, and curriculum redesign are essential to prepare graduates for a competitive labour market.