The big picture: Singapore is experiencing a paradox in its entry-level job market: starting salaries are increasing, but the number of available positions for fresh graduates is declining.

Why it matters: This trend signals a tightening labor market for new entrants and highlights the evolving demands on early-career professionals, driven in part by AI integration.

Between the lines:

• Entry-level salaries rose 2.5% year-on-year, while headcount dropped 3.2% from 2025.
• Retrenchments in Singapore reached their highest level since Q4 2020 in Q2 2026.
• Employers are prioritizing problem-solving, human skills, and AI collaboration for new hires.

Staffing & HR impact: Staffing firms must adapt recruitment strategies to focus on upskilling and reskilling programs for entry-level talent, emphasizing AI literacy and soft skills to meet changing employer demands. This shift impacts talent acquisition pipelines and the types of roles being filled.

The bottom line: AI is fundamentally reshaping the foundational rungs of the career ladder, demanding a proactive approach to talent development.