Fewer private university graduates employed, though salaries inch higher: Survey

Key Concepts

• Private Education Institution (PEI) graduate employment
• Hiring sentiments
• Permanent vs. contract employment
• Gross monthly salary
• Autonomous universities vs. private institutions
• Prestige gap
• Cost of hiring and replacement
• Hot skills vs. met skills
• Stackable courses
• Industry experience
• Employability
• Mentorship and networking
• Course relevance and industry partnerships

Employment Trends for Private Education Institution (PEI) Graduates

• Decline in Job Placement: Fewer PEI graduates secured jobs within 6 months of graduating, marking a second consecutive year of decline. Data comes from a Skillsfuture Singapore survey of 3,500 fresh graduates from the cohort of 2024.
• Weak Hiring Sentiments: The decline indicates weakening hiring sentiments, as fewer graduates were placed compared to the previous year (less than full in 5 graduates were placed 6 months after graduation).
• Shift to Contract Employment: Among those employed, less than half secured permanent employment, a decrease from about 6 in 10 in the previous cohort.
• Salary Increase: The median gross monthly salary for PEI graduates increased to $3,500 Singapore dollars from $3,400 in 2023.
• Salary Variation by Field: Graduates in information and digital technologies earned the highest salaries (over $4,000), followed by those in humanities and social sciences.
• Salary Disparity with Autonomous Universities: Median salary figures for PEI graduates remain significantly lower (approximately $1,000 less) than those of autonomous university graduates.
• Higher Unemployment: The percentage of unemployed PEI graduates actively seeking jobs is double that of autonomous university graduates.

Factors Influencing Hiring Decisions

• Prestige Gap: An analyst attributes the disparity to a "prestige gap," where employers perceive graduates from autonomous universities as a "safer option."
• Economic Uncertainty: Economic uncertainty may lead employers to favor graduates from institutions with a "proven track record," especially when hiring budgets are constrained.
• Cost of Hiring and Replacement: Employers prioritize candidates who are likely to stay with the organization long-term, given the high costs associated with hiring and replacement.

Perspectives from the Singapore Human Resources Institute (SHRI)

• Varied Employer Perceptions: Employer perceptions of PEI degrees vary depending on the specific institution. It's important to research the value of individual PEIs.
• Hiring Sentiment: Current hiring sentiments are weaker, but demand remains strong for certain roles, particularly in areas like human resources.
• Value Proposition: PEIs need to demonstrate the value they bring to graduates to improve their employment prospects.

Stackable Courses and Skills-Based Hiring

• Stackable Courses Gaining Popularity: Stackable courses are becoming more popular as alternative educational pathways.
• Employer Focus on Skills and Experience: Employers prioritize candidates with relevant skill sets, knowledge, and industry experience, which contribute to overall employability.
• Evaluating Stackable Courses: Students should evaluate programs based on their ability to provide relevant knowledge, networking opportunities, increased job visibility, and mentorship.

Impact of a Weakening Job Market

• Differential Impact: The impact of a weakening job market will vary depending on the specific field of study.
• High-Demand Fields: Graduates in sciences, technology, certain areas of finance, and human resources are likely to be less affected.
• Vulnerable Fields: Graduates in social sciences and general management courses may face greater challenges.

Role of Private Institutions

• Course Interest: Learners should evaluate their interest before embarking on their journey with a certain private educational institutions.
• Commitment Beyond the Classroom: PEIs should commit to providing learning opportunities both within and beyond the classroom, including professional events, mentorship, and networking opportunities.
• Course Relevance and Industry Partnerships: PEIs need to rethink their course offerings and partnerships with industry to stay relevant to evolving job market demands.
• Curriculum Evolution: PEIs must ensure their curriculum remains relevant to the demands of the role, acknowledging the rapidly changing skill sets required.

Conclusion

The employment prospects for PEI graduates are facing challenges due to weakening hiring sentiments and a perceived "prestige gap." However, opportunities exist for graduates in high-demand fields and those who acquire relevant skills and industry experience. PEIs must adapt by focusing on course relevance, industry partnerships, and providing students with opportunities for networking and mentorship to enhance their employability.