SINGAPORE — Applications for the Singapore government's Graduate Industry Traineeships (GRIT) program fell approximately 90% between its launch in October 2025 and February 2026. The program, which offers monthly allowances between 1,800 and 2,400 Singapore dollars, saw over half of its 800 roles filled by March 2026.

Manpower Minister Tan See Leng attributed the softening uptake of GRIT applications to individuals declining placements in favor of other job opportunities. He also stated in May that increased uncertainty has made businesses in Singapore more cautious about hiring. The government funds around 70% of each GRIT trainee's fixed compensation range.

The lowest GRIT allowance is less than half the median graduate starting salary in Singapore. The government caps these allowances to ensure trainees continue to prioritize permanent employment and to encourage employers to hire trainees on proper contracts. Prime Minister Lawrence Wong has warned that some existing jobs will disappear due to artificial intelligence. Retrenchments across the workforce in Singapore reached their highest level in nearly three years in the first quarter of 2026, while the unemployment rate remained at 2% in the same period.

Some graduates have expressed concerns regarding the program. Kelvin Seah, an associate professor of economics at the National University of Singapore, said in a podcast interview that graduates might avoid the program if they believe it is intended mainly for those unable to secure employment. "Particularly if they believe that GRIT is intended mainly for graduates who are unable to secure employment," Seah said. Lee Jia En, a 25-year-old graduate from the Singapore University of Social Sciences who participated in the GRIT program, said, "When I started the program, I thought: 'Shucks. I've finished four years of school and all I've got is a job that pays half of what my friends get'."

Lee, who earned a second-class honors degree and completed four internships, added, "But I felt it was worth it if it could help me get to my next job. So I said OK, let's eat humble pie." Lee eventually secured a permanent position with the same government employer where she completed her traineeship, despite reporting that her boss at the traineeship relegated her to tasks such as printing and laminating documents.

Phang Jun, a 24-year-old communications major who graduated from Singapore Management University in 2025, said in a podcast interview, "Right now, I'll just take whatever comes."

Full-time employment rates among business, arts, and science graduates from Singapore's six universities decreased by about 10 percentage points between 2023 and 2025, according to a March 2026 annual graduate employment survey. Oversea-Chinese Banking Corp Ltd offered 50 places on the GRIT scheme and hired 40 trainees in fields including data and credit analysis.