Why graduates are unemployed in Malaysia?

While digitalisation created new jobs in Malaysia, most Malaysian fresh graduates lacked the right digital skills to fill those jobs. This has also contributed to the decrease in fresh graduates’ starting salaries in the competitive job market.

What is the reason of unemployment in Malaysia?

Recent statistics show various factors contributing to unemployment among youth in Malaysia. According to the Ministry of Finance (2019), unemployment among youth is due to i) lack of work experience, ii) lack of skills, iii) insufficient education levels, and iii) skills incompatibility to compete in the labor market.

What is the cause of graduates unemployment?

Thereafter, the possible causes were investigated, such as lack of experience, lack of soft skills, skills mismatch, poor quality of education of the graduates, discrimination by employers, etc.

How many graduates are unemployed in Malaysia?

Abstract: Graduate unemployment exhibits a clear increasing global trend, and Malaysia is no exception. The unemployment rate among graduates is witnessing a considerable upsurge, growing from 43,800 in 2000 (15% of total unemployed) to more than 175,500 in 2017 (35%).

How can Malaysia reduce unemployment in graduates?

restructuring the educational system in order to increase the students’ achievements 2. increasing the graduates’ skills in order to increase the marketability of the graduates, and 3. restructuring the labour market system in order to develop Malaysia as a high-income nation.

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What is effect of unemployment?

The personal and social costs of unemployment include severe financial hardship and poverty, debt, homelessness and housing stress, family tensions and breakdown, boredom, alienation, shame and stigma, increased social isolation, crime, erosion of confidence and self-esteem, the atrophying of work skills and ill-health …

What is the cause and effect of unemployment?

effects of unemployment include over exploitation of available labor, reduced rate of economic growth, reduced human capacity, loss of human resources and increase in poverty levels (Dawson 101). One positive effect of unemployment is the availability of adequate labor at reduced market prices.

Why fresh graduates are unemployed and jobless in Malaysia?

Lack of digital skills

While digitalisation created new jobs in Malaysia, most Malaysian fresh graduates lacked the right digital skills to fill those jobs. This has also contributed to the decrease in fresh graduates’ starting salaries in the competitive job market.

What degree has the highest unemployment rate?

Physical sciences is a broad major that typically includes courses in biology, chemistry, mathematics, and physics. Of the nearly 11,000 labor force participants who majored in physical sciences, 5.8% are unemployed, a far higher than average jobless rate for college graduates.

Why is it hard to get a job as a fresh graduate?

Fresh graduates face steep competition

As the number of college graduates and degree holders has increased during the past years, so has the number of job applicants vying for the same position. This means tough competition in the job market, specifically for entry-level posts.

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What is the unemployment rate in Malaysia?

Malaysia : Unemployment rate from 1999 to 2020

Characteristic Unemployment rate
2020 4.55%
2019 3.31%
2018 3.3%
2017 3.41%
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