SINGAPORE – A groundbreaking study unveiled on November 22 has revealed that graduates from polytechnics and the Institute of Technical Education (ITE) who participated in SkillsFuture work-study programs (WSPs) are raking in higher wages compared to their peers who jumped straight into the workforce.

But wait—could this be the secret to skyrocketing salaries?

Economists Audrey Ling and Damian Tan conducted a detailed analysis of WSP graduates from the 2018 to 2021 cohorts, uncovering some eye-opening results.

Polytechnic graduates who completed the Work-Study Post-Diploma (WSPostDip) saw an impressive wage premium of approximately 9% within just one to two years of finishing the program.

This wasn’t a flash in the pan; the premium continued, albeit slightly, to around 6% in the following two years.

Meanwhile, ITE graduates who completed the Work-Study Certificate (WSCert) experienced an even more significant boost, enjoying an 11% uptick in their earnings in the same timeframe, with this benefit remaining consistent for the next two years!

While the data reveals that polytechnic graduates can also enroll in the WSCert program, the study faced limitations in evaluating the wages of those who did due to a small sample size.

The Ministry of Education isn’t sitting back either.

Efforts are underway to further expand and enhance the work-study pathway to align with the demands of the job market, especially for high-demand roles.

The SkillsFuture WSP is strategically designed to help graduates improve their qualifications while gaining hands-on experience in jobs related to their fields of study.

Participants of the WSP benefit from a well-rounded experience, working full-time while acquiring on-the-job training and classroom learning.

Success in the program awards them a diploma or an industry-recognized certification—a potent combination for enhancing employability and career prospects.

The WSPostDip and WSCert programs, both lasting between 12 to 18 months, are the cornerstones of this initiative, enabling graduates to upgrade their qualifications significantly.

Let’s not forget the financial incentives!

Individuals who sign up for these programs receive a sign-on bonus of $5,000, while participating employers get grants of up to $15,000 per trainee to help cover training and salary expenses.

Talk about a win-win!

Eligibility for these programs is tailored to fresh graduates and dependent on timing: recent polytechnic and ITE graduates can apply within three years of graduation, while male graduates must do so within three years of completing national service.

What's more, candidates can only enroll in areas that are closely related to their previous studies.

In a rapidly evolving job market, Singapore has been weathering impressive economic indicators.

The overall unemployment rate dipped to a low 1.8% in Q3 2024, with new employment rising from 15,000 to a remarkable 26,700 in just three months.

Labour productivity trends are also favorable, driving unit labor costs down to 0.9% compared to last year's 7.9%.

According to Ms. Selena Ling, chief economist at OCBC Bank, this news is “welcome music” for businesses, particularly for small and medium-sized enterprises grappling with rising costs in a challenging economic climate.

Keep an eye on how SkillsFuture is transforming the educational and professional landscape in Singapore.

Could this be the blueprint for success in the workforce? Stay tuned as we uncover more insights!