More employers looking at competency over qualification, AI-related skills in high demand: MOM

More employers broadened their hiring criteria in 2025 beyond academic qualifications to focus on relevant skills instead, with digital and AI-related skills being increasingly prioritised.

Qualifications were not the main factor in hiring for 79.6 per cent of vacancies in 2025, up from 78.8 per cent in 2024, said the Ministry of Manpower (MOM) in its annual job vacancy report on Friday (March 20).

By focusing more on the skills required and relevant job experience, firms noted benefits such as faster hiring, broader talent access and improved employee performance. 

MOM found that skills such as software development, systems analysis and data analytics, alongside problem-solving and adaptability, are commonly required for in-demand professions, including technology roles and analytical positions in finance and engineering. 

These jobs, which involve tasks with high AI potential, will require workers to develop fluency in using AI-enabled tools.

Most employers are open to hiring candidates with lower qualifications, reflecting a more progressive focus on skills and potential over formal qualifications which might constrain labour mobility for workers, said the ministry.

However, flexibility varied by job type and sector, with more employers being open to hiring candidates who did not meet the minimum qualification for non-PMET vacancies (82.9 per cent) compared to PMET vacancies (55.7 per cent).

MOM found that 31.5 per cent of job vacancies required no prior experience while 20.2 per cent required one year of experience, making it easier for fresh graduates to find jobs.

1 in 2 vacancies newly created

New positions formed one in two vacancies, reflecting a growing share of openings driven by expansion.

In particular, data showed that information and communications had the highest proportion of vacancies for new positions, reflecting the industry’s dynamism and competitiveness.

But food and beverage sector saw a further decline in the proportion of newly created job vacancies after peaking in 2023, amid subdued sectoral growth due to changes in dining preferences and consumption patterns.

The number of job vacancies within the sector fell to 40.6 per cent from 44.4 per cent in 2024.

Data also showed there are more vacancies for non-PMET roles than PMET roles.

Hiring difficulties persist in specialised roles

Demand for skilled workers in technology and engineering remained strong, especially as more employers incorporate AI into their operations.

MOM noted that hiring difficulties have eased overall, but that difficulties persist in specialised roles, such as data scientists, and applications and systems programmers, and take a longer period of time to be filled.

The percentage of vacancies unfilled for at least six months fell significantly from 39 per cent in 2015 to 17.1 per cent last year.

While this longer-term improvement was observed for both non-PMET and PMET roles, long-duration PMET vacancies edged up to 16 per cent in 2025, reflecting growing specialisation that may require more time to assess job fit.

Employers also cited a lack of specialised skills and relevant experience, within roles such as data scientists, teaching and training professionals and civil engineers. 

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