Should Young Singapore Workers Accept A Lower Starting Salary To Get Started In The Age Of AI?

For fresh graduates, getting a first job can feel like a chicken-and-egg problem. Employers want someone with relevant experience, but to gain that experience, someone first needs to give you a job.

Unfortunately, artificial intelligence (AI) could make this even harder.

The fact is that some of the work companies traditionally assign to junior employees can now be done easily and cheaply with AI. While this helps businesses become more productive, it also raises a question: if companies need fewer people to do entry-level work, where will young workers find opportunities to learn on the job?

For graduates struggling to find a suitable job, one practical response could be to accept a lower starting salary, enter the workforce, and build skills and experience before pursuing higher pay.

But is this a sensible way to get started? Or would it simply leave them working for less without improving their career prospects?

Before You Can Climb The Career Ladder, You Need To First Get On It

At the DBS Asia Future Forward Conference on 12 October 2026, Prime Minister Lawrence Wong spoke about the risk of AI breaking the “bottom rung” of the career ladder. As companies automate routine work, young employees could lose opportunities to train and develop their skills, especially at the entry level.

Most of us who have worked for a few years would relate to what he is saying. Our first jobs probably weren’t particularly exciting, and we probably spent a fair amount of time doing mundane work we likely wish we didn’t have to do. The good news is that with AI, this is probably true for today’s generation, but it also comes at a cost.

That’s because doing that work was part of how we learnt. We discovered which information mattered, why our initial approach didn’t work, and what a better outcome looked like. Over time, we became capable of taking on more responsibility.

AI can shorten this process considerably. That learning process is still invaluable, especially for younger workers looking to gain experience.

Longer Internships Could Give Students A Head Start

One way to help young people build experience is to give them more time in the workplace before they graduate. Earlier this week, the government announced about 3,000 year-long internship opportunities over three years for eligible Information and Digital Technologies students from ITE, polytechnics and autonomous universities.

Lasting 10 to 12 months, the internships are intended to give students enough time to work on substantial projects and learn from experienced colleagues. A longer placement could allow an intern to follow a project through different stages and take on greater responsibility as they become more familiar with the work. For eligible students, this offers a way to gain experience before entering the job market.

To encourage companies to offer these placements, IMDA will co-fund hiring costs by up to $1,000 a month per eligible intern. Details on how much students will earn have not been shared.

Securing A Full-Time Permanent Job Has Become Harder

Among fresh graduates from Singapore’s six autonomous universities who were working or looking for work, the proportion in full-time permanent employment fell from 83.7% in 2023 to 79.4% in 2024 and 74.4% in 2025.

In our informal conversations with fresh graduates, some have similarly shared that full-time permanent roles are increasingly difficult to secure. These are individual experiences, but they help explain the concerns behind the numbers.

Of course, we should not assume that AI is responsible for the decline. Economic uncertainty and more cautious hiring have also affected opportunities. The universities have also highlighted that graduate employment outcomes generally improve beyond the six-month mark as more people find work.

Nevertheless, for someone still searching, it is worth considering whether adjusting their salary expectations could help them get started.

Read Also: Fresh Graduate Salaries Are Rising, But Unemployment Is Rising. Why This Is A Problem For Young Singaporeans

Your Starting Salary Is Only Useful If You Can Secure The Job

For fresh graduates struggling to find work, taking a job that pays less than expected may be better than remaining unemployed. They would earn an income while gaining experience, developing skills and building their network, which could help them secure better opportunities for the future.

For example, a graduate hoping to earn $4,000 a month might receive an offer of $3,500 for a relevant role. While this is below their expectations, accepting it allows them to start earning and learning immediately. Holding out for a higher salary could mean spending several more months without an income or the work experience that could strengthen their next job application.

In our view, being flexible about starting pay can therefore be a sensible strategy, provided the job offers useful experience and opportunities to learn. The aim is to get started, become more capable and use that experience to work towards higher pay.

Read Also: Why Comparing Your Salary To The Average Salary In Singapore Is Similar To Parents Comparing Their Children’s Grades