While starting salaries have increased for all graduate groups in Singapore, the gap between university and non-university graduates continues to widen.
The median starting pay difference between university and polytechnic graduates grew by S$200 between 2016 and 2021.
During the same time period, the difference between university and Institute of Technical Education (ITE) graduates widened by S$300.
In a written response to a legislative question from Edward Chia Bing Hui, Member of Parliament for the Holland-Bukit Timah Group Representative Constituency, Education Minister Chan Chun Sing disclosed these figures based on data from the Graduate Employment Surveys.
Chia had inquired as to the cause of the rising income disparity between university and non-university graduates and the Ministry of Education's intentions for addressing this issue.
Lawrence Wong, Deputy Prime Minister and Minister of Finance, stated last month that the typical starting pay for university graduates is around double that of ITE and polytechnic graduates.
At a seminar hosted by the Institute for Policy Studies, Wong stated, "While some difference is understandable, too wide a gap might lead to undesirable results."
"Additionally, it becomes more difficult to match the appropriate individuals with the right abilities to the right employment. All of this exacerbates the Singaporeans' impression of a never-ending rat race and paper chase, adding to their fears and anxieties," he continued.
The National University of Singapore (NUS) reported in a research released last year that Singaporeans with a university degree or post-graduate degree earn a median monthly pay of S$4,200, more than double the S$2,000 median monthly wage earned by those with an ITE certification.
Nonetheless, the study lead by Associate Professor Irene Ng of the social work department at NUS concentrated on the earnings of Singaporeans in their twenties and thirties as opposed to their initial income.
In his written answer, Chan attributed the disparity in graduate pay to a number of variables.
This covers the relative demand and supply of labor, as well as variances in productivity between the various occupations and industries that college graduates enter.
As an example, he referenced the information and community technology industry, where digitalization and Covid-19 have accelerated the need for labor, resulting in rising pay. This has attracted an increasing number of degree-holders.
"While certain variances are reasonable, it is essential that these differences do not grow substantially over the course of an individual's lifetime," Chan added.
"Singaporeans must feel that there are possibilities to advance throughout their careers, regardless of where they began."
Chan explained that the ministry and other government organizations engage with educational institutions and business partners to urge firms to recognize the abilities and competences of non-university graduates as a means of reducing the beginning pay gap.
The Infocomm Media Development Authority, for instance, established a technical skills accelerator alliance for ITEs and polytechnics that included global and Singaporean corporations last year.
This is intended to accelerate the transition from qualification-based to skills-based recruiting procedures in the technology sector. It also aims to equip students and graduates of ITEs and polytechnics with the skills necessary to pursue tech-related career opportunities and contribute to Singapore's digital growth.
Several companies, including DBS bank, Dell Technologies, Google, IBM, Singtel, and ST Engineering, have joined the collaboration.
In a similar vein, the Ministry of Trade and Industry has launched a grant to help manufacturing enterprises in hiring and training ITE graduates for crucial technician and assistant engineer positions, as well as providing them with skills development and competitive remuneration.
Chan urged businesses and employers to increase productivity and commit to recruiting, developing, and compensating employees based on their skills and abilities, as opposed to their initial credentials.
Have a story? Send to us here sgtelltale@outlook.com
Comments