Should a fresh graduate take on a contract role? Or should he/she continue to apply to full time roles?

The key trade-off is likely stability, which a full-time role offers whereas a contract role does not. However, some people value the flexibility of a contract role, which should not be underestimated. As a fresh grad, it should definitely be worth considering applying to contract roles! Work experience is essential, and contract roles help fill that gap in your portfolio until you are able to attain full-time employment in the long-term.

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Its hard to give an definite answer to this question as there are both pros and cons to either option. Instead, balance out the options - are you at a financially tight spot and you don't mind starting immediately with a contract job? Or are you privileged to have the time and money to spare, to explore options closer to your passion/ skill set? At the end of the day, it's no point forcing yourself through an option that pays more or is more 'glamourous' if you can't do well at the job and/or won't last long there

Set yourself a timeline e.g. by x months, if I can't find a full-time job that I like, I will consider contract/other options instead.

The ideas of the first job, should be to build up ur experience and portfolio. For contract jobs, if your performance is good, the company would most likely offer to either recontract or convert to a perm position. Focus more on the experience and exposure.