Rate Of Unemployed Malaysian Youths Continues To Rise And Is Currently The Highest In The Country. Here’s Why

Main image via Lara Yeku

There are about 500,000 Malaysians currently jobless, according to Economic Affairs Minister Mohamed Azmin Ali, who gave the statistics in the Dewan Rakyat on Monday (6 Aug 2018).

Image via Selangor Kini

The top three highest rates of unemployment are:

1. Labuan (8.6%)
2. Sabah (5.5%)
3. Terengganu (4.5%)

Meanwhile, the percentages of unemployment according to age groups are:

1. 15 to 24 (10.8%)
2. 25 to 34 (2.9%)
3. 35 to 44 (1.1%)
4. 45 to 54 (1%)
5. 55 to 64 (0.4%)

Those who constitute the largest group of job-seekers are Malaysian youths, diploma holders and SPM holders.

Image via Leaderonomics

According to AmBank Head of Research and Chief Economist Anthony Dass, who recently compiled data on the country’s unemployment rate, there are several reasons why this is happening.

via GIPHY

#1 Slower hiring

Many businesses are being cautious about expanding their workforce because of a moderate economic performance.

#2 There’s a wide gap between unemployed young men and women

Currently, young males have more jobs (53% participation rate) than young females (37% participation rate) in Malaysia.

#3 We’re overqualified

There are more job opportunities in low to mid-skilled jobs. And companies offering these positions are hiring foreign workers and locals aren’t applying for these low-skilled positions.

via GIPHY

#4 But we’re undertrained

Graduates are competing with mature adults, who have more exposure and work experience. Currently, there are more people competing for a limited number of jobs. So, employers tend to turn to adults with a longer work history of work experience.

#5 We don’t know how to look for work

Most Malaysian youths look for work through family or friends, or by word-of-mouth. Otherwise, they don’t know where or how to look for jobs.

via GIPHY

Dass stressed the importance of addressing the failure of the basic education system. According to Dass, there’s a mismatch between skills required for jobs and level of skills Malaysian youths have when they leave school.

via GIPHY

Tertiary education in Malaysia needs to place more focus on industrial training programs, ensuring their graduates have necessary communication skills and self-esteem aside from their academic performance.

Info via Free Malaysia Today and The Star