Causes of Unemployment Issue in Malaysia


Unemployment has historically been a universal issue, regardless of the country and their economic state, they have all fallen victim to the shackles of unemployment. But, most importantly it is a critical area of discussion for developing nations. High rates of unemployment often indicate the inefficient use of labour resources.

With an uncertain job market and the lack of belief in traditional tertiary education has made school-leavers decide against continuing their tertiary education. In 2021, the nation produced 5,023,400 fresh graduates and approximately 5% of them were unable to secure jobs. This indicates that a whopping 235,600 graduates, excluding those that work in fields that are not relevant to their qualifications, experienced unemployment. Additionally, despite having a degree from university, many only earn minimum wage which has put many SPM holders off on advancing to university level studies.

However, it would be unjust to solely blame the job market for the lack of employment. A survey conducted between employed graduates and unemployed graduates, revealed that many who have struggled to secure job opportunities were lacking in communication skills. Some had accepted jobs that were different to what their qualifications could offer them, such as poor proficiency in BM and English.

So with that, here are a couple of ways to fix unemployment and make sure fresh graduates are ready to take on the job market:

1. Training Programs: fresh graduates are usually learning the ways of the job in a very concise and within the classroom manner, therefore, their experience is very limited. Training programs can help employers connect with individuals who are seeking internships or other on-the-job training experiences. This will allow them to gain some real life experience and guide them in securing full time employment.

2. Reduction in the geographical immobility of labour: A great deal of graduates and those looking to enter the workforce have the skills in demand, however, factors such as housing prices and rent, familial and social ties make it slightly difficult to make the change in location. In this aspect the government can explore the increase in transportation options, raising of standards of living that directly help mobilise the economy.