From Classroom to Career: How GRIT Prepares Graduates

Image Credits: Unsplash (Albert Vincent Wu)

In this Policy Explainer, find out…

What is the Graduate Industry Traineeships (GRIT) scheme?
Why was the GRIT scheme implemented?
What are some of the possible challenges in launching the GRIT scheme, and how will they be mitigated?

Introduction

According to the latest annual graduate employment surveys, fewer fresh graduates secured full-time employment in 2024. Indeed, job searching and hiring in Singapore have become increasingly challenging amid the global economic slowdown and a widening skills mismatch.

Six in 10 Singapore workers said their job search has become more difficult over the past year, according to LinkedIn’s findings. This is higher than the global average of five in 10. This result reflects shifting market conditions and a sluggish labour market, as well as growing concerns about job opportunities.

While the lack of opportunities is the main cause of anguish among job seekers, half of hiring professionals report difficulty finding qualified candidates. Nearly eight in 10 attributed this struggle to a skills mismatch between what professionals have and what companies need — candidates with the right soft and technical skills.

With the advent of Artificial Intelligence changing the nature of jobs and skills required, government efforts are paramount to help Singaporeans find jobs, particularly, good jobs that are commensurate with one’s skillset and potential. The Graduate Industry Traineeship (GRIT) scheme, being the most recent initiative, is just one policy within this overarching framework.

What is the GRIT Scheme?

GRIT is a newly launched traineeship programme aimed at supporting fresh graduates in getting industry experience and pursuing full-time employment.

Opportunities From Traineeships

Up to 800 traineeships will be offered by private firms and the public sector (under the GRIT@Gov programme coordinated by the Public Service Division) from October this year amidst concerns from fresh graduates about a tepid job market.

Trainee allowance will range from S$1,800 to S$2,400 per month, depending on the scope of each traineeship. The government will fund 70 per cent of the monthly allowance for trainees, and the host organisations — which include companies in growth sectors such as financial services, information and communication technology, and manufacturing and wholesale trade — will fund the remaining 30 per cent.

Each traineeship will last between three and six months. While the scheme is aimed at fresh graduates from universities, polytechnics, the Institute of Technical Education and other educational institutions (private universities and overseas institutions), graduates with master's degrees or PhDs may still apply.

Why Was The GRIT Scheme Implemented?

First, the GRIT scheme aims to help fresh graduates gain industry experience and practical skills. This can help them explore their career options and enhance their employability.

Second, the GRIT scheme also addresses graduates’ concerns in meeting employers’ expectations of having years of relevant working experience before being employed.

Last, the GRIT scheme may improve fresh graduates’ career prospects in the long term. Upon the completion of the traineeship, trainees may either be offered full-time positions by their host organisation or agency, or pursue opportunities elsewhere.

How Does GRIT Compare to the Previous Traineeship Scheme?

Traineeships were previously offered in the midst of economic uncertainties during the COVID-19 pandemic through the SGUnited Traineeships (SGUT) Programme. Trainee allowance for this programme ranged between S$1,100 and S$2,500, with 80 per cent of the allowance funded by the government.

From June 2020 to March 2022, more than 12,500 trainees went through the SGUT programme. However, the programme ceased after the number of participants dipped when the economy recovered.

While both schemes serve similar objectives, there are stark differences between their policy scope and implementational circumstances.

Similarities

Similar objective of providing job experiences;
No employer-employee relationship, so employers are not obligated to pay CPF or provide paid leave;
Flexibility for trainees to exit early;
Government funding for trainees’ stipend is in place; and
Placement in private and public organisations.

Differences

Potential Policy Challenges and Mitigation Measures

Broadly, the GRIT scheme may encounter challenges in three areas: implementation, achieving its goals, and unintended consequences.

Implementation

A key concern is the limited scope of the GRIT scheme. With only 800 positions offered at the outset, it may fall short of meeting the needs of the wider pool of graduates seeking traineeships.

Another obstacle is employer participation, particularly among Small and Medium Enterprises (SMEs). SMEs may lack the economies of scale to handle existing issues, including rising costs, uncertain demand, and manpower shortages. As a result, SMEs may be unwilling to hire trainees who require additional supervision. Implementation may thus be imbalanced. Large firms with established training infrastructure capture the benefits of building a talent pipeline, while SMEs are sidelined.

Most pertinently, questions loom over the structure and quality of these traineeships. Clear frameworks for traineeship structure are difficult to establish due to the diversity of available GRIT opportunities. If the scheme is perceived as low-quality or irrelevant to the demands of industry, both employers and graduates may lose faith in the programme, limiting its potential for impact.

Achieving its Goals

One of the primary goals of the GRIT scheme is to help trainees secure lasting employment in their chosen industry. Yet even with smooth implementation, the scheme may fall short: host firms are not required to offer permanent roles, leaving trainees under pressure to ensure their skills are transferable to other employers.

‘Uncompetitive’ remuneration may also dampen participation. The trainee allowance is about $2,000 lower than the median starting salary of $4,500, and it excludes key benefits such as Central Provident Fund (CPF) contributions and paid leave. This makes the scheme less appealing. Graduates today are not just seeking job openings but roles that match their qualifications by offering what they deem to be fair compensation.

There is also the risk that trainees, seen as inexperienced, may be relegated to routine or menial tasks without meaningful learning opportunities. Without strong mentorship, the scheme could fall short of its core objective: providing critical industry exposure.

Unintended Consequences

Beyond implementation and outcomes, the scheme may also create unintended market distortions. By setting a low benchmark for entry-level pay, subsidised traineeships could inadvertently depress wages for fresh graduates. This is especially so if the scheme is expanded further.

Another concern is displacement. To cut costs, employers may replace full-time hires or mid-career staff with trainees, effectively reducing permanent employment opportunities.

Mitigation Measures

To pre-empt these concerns, the Ministry of Manpower has outlined several mitigation measures to safeguard the effectiveness of the GRIT scheme.

On the scale of implementation, the Minister, Dr Tan See Leng, mentioned, “The government will assess whether the scheme's capacity needs to be expanded based on the economic situation and labour market indicators”.

Additionally, there exists another scheme, GRIT@Gov, with 2,400 positions for fresh graduates wishing to immerse themselves in the public sector instead, broadening the GRIT’s scope to serve a more diverse range of competencies and interests.

To address SME hesitancy, Workforce Singapore (WSG) will fund 70% of trainees’ monthly allowance. The Minister has also provided assurances that “if the situation worsens, the government is prepared to put in more funding”.

Moreover, the GRIT scheme includes measures to ensure its core goal is met: exposing fresh graduates to industry while equipping them with relevant, transferable skills.

WSG will work with partner agencies to recruit host organisations from growth sectors, enhancing the scheme’s appeal. These organisations must also follow a “structure” for traineeship quality assurance, though details have not yet been released (as of 12 September 2025).

Should trainees require additional help securing full-time employment after their traineeship, WSG and the National Trades Union Congress (NTUC) will offer career-matching services through existing schemes such as Careers Connect and e2i, where the traineeship will give them added leverage in the job market.

While the Ministry does not plan to increase compensation, it has emphasised that the traineeship is a temporary three- to six-month stepping stone, after which graduates either receive full-time offers or move into other roles with newly acquired skills. The GRIT scheme is not intended to replace full-time opportunities.

In the same vein, the Ministry has acted to minimise risks of displacement. To protect mid-careerists, the GRIT scheme is deliberately shorter and less extensive than reskilling programmes like the Career Conversion Programme, which is packaged with full salary support.

Dr Tan See Leng has also explicitly outlined stringent criteria for disbursing funds. These will likely include clear training frameworks that ensure meaningful skill acquisition, addressing concerns that ‘trainees’ become synonymous with ‘affordable labour’.

Conclusion

The GRIT scheme reflects Singapore’s pragmatic and swift response to labour market challenges and the concerns of fresh graduates. It offers short-term exposure in growth sectors, strategically aligned with Singapore’s need to remain competitive, while providing a buffer against a cooling job market. Its design draws lessons from the SGUT, though some familiar risks remain.

As with any policy, GRIT should be continually reviewed to ensure it meets its objectives while mitigating unintended consequences. Feedback channels must remain accessible and acted upon promptly to safeguard the effectiveness of the scheme. At the same time, graduates should recognise that while the scheme encourages skill acquisition, it does not eliminate the responsibility of staying competitive in an exceptionally challenging job market.

GRIT’s success will hinge not merely on the number of traineeships offered, but on whether it fosters genuine skill development and sustainable career pathways. Careful planning can help bridge the persistent skills gap and strengthen graduate employability. Conversely, poor execution risks depressing wages and undermining trust in the principle of building knowledge to pursue meaningful work.

The ultimate challenge, then, is ensuring that the GRIT scheme evolves beyond a temporary ‘stopgap measure’ into a credible institution that balances immediate support with long-term human capital development.

This Policy Explainer was written by members of MAJU. MAJU is a ground-up, fully youth-led organisation dedicated to empowering Singaporean youths in policy discourse and co-creation.

By promoting constructive dialogue and serving as a bridge between youths and the Government, we hope to drive the keMAJUan (progress!) of Singapore.

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