Disclaimer: Unless otherwise stated, opinions expressed below belong solely to the author. Data sourced from the Ministry of Manpower.
The Ministry of Manpower (MOM) released the Labour Force in Singapore 2024 report a few days ago, providing a summary of the labour market trends over the past year.
Among many findings, it contains interesting data on the incomes of the most educated Singaporeans, which shows that pursuing a university degree is still a worthwhile investment.
S$3,000+ above the rest
The figure that is typically reported is the national median, which in 2024 was S$5,500. It is, however, the least relatable and informative since it pools all Singapore residents together—from the elderly standing in for family members at a hawker stall to multimillionaires.
Meanwhile, educational background provides a better context because it allows you to see yourself among people who pursued a similar path.
Last year, degree holders maintained their leadership over the rest (or, rather, the broad median for the entire society they too are a part of) at over S$3,100, with the median employment income reportedly hitting S$8,656 (gross, including employer’s CPF).
This means that half of them make more than that.
Interestingly the distance between the best educated and the national median has been quite stable over the past decade, hovering around S$3,000 on most years. This means that it has relatively shrunk in proportion.
However, at the same time, the share of degree holders in the workforce has increased quite significantly.
In other words, even though the nominal ca. S$3,000 advantage may be relatively smaller today than it was a decade ago, far more Singaporeans are able to enjoy it.
From just one-third in 2014, their share has increased to over 40% and, at this pace, should reach half of all workers within the next five years or so (aided, in part, by older, less educated generations retiring).
S$9,000 in 2026, S$10,000 by 2030
Given last year’s jump of over S$460, it’s possible that the round S$9,000 could be broken as early as this year and certainly no later than 2026. This would put degree holders on track to a median of S$10,000 within the next five years.
This is despite the global decrease in the importance of academic qualifications, which has also been registered in Singapore in the past few years.
It seems that even if your employer doesn’t care about your degree, you still are primed for a better job and higher salary than those who did not complete advanced education.
Perhaps it’s not down to specific skills obtained at school (with the exception of practical degrees in fields like engineering, science or medicine, perhaps) but the intellectual capacity that is exhibited by most of those who pursue a degree.
Whatever the reasons, the numbers suggest it is still far better to complete it than not.
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