UNEMPLOYEMENT AMONG GRADUATES

1.0 INTRODUCTION

Unemployment is a joblessness which in situation in able-bodied people who are

looking for a job but cannot find a job. The causes of unemployment are heavily
debated. Research undertaken proved that unemployment and underemployment of
graduates are devastating phenomena in their lives. One year after graduation, the
unemployment rate of 2007–2008 bachelor's degree recipients was 9%.
Underemployment among graduates is high.

In Malaysia, the unemployment rate measures the number of people actively

looking for a job as a percentage of the labour force. This page provides - Malaysia
Unemployment Rate - actual values, historical data, forecast, chart, statistics,
economic calendar and news. Malaysia Unemployment Rate - actual data, historical
chart and calendar of releases - was last updated on July of 2019.

The increasing rate of unemployed graduates is one of the issues that triggers
world's concerns lately. Consequently, this research aims to investigate factors that
lead to the unemployment problem among Malaysian graduates from three aspects,
which are graduates' attributes, lecturers' competency and quality of education.

The current issue of unemployment rate in Malaysia changed higher to 3.4

percent in April 2019 from 3.3 percent in the corresponding month of the previous
year. The number of unemployed increased by 2.6 percent from a year earlier to 523.3
thousand, while employment went up 1.9 percent to 15.09 million. Also, the labor
force rose 2 percent to 15.61 million. On a seasonally adjusted basis, the jobless rate
stood at 3.4 percent in April, the same as in March. Unemployment Rate in Malaysia
averaged 3.28 percent from 1998 until 2019, reaching an all time high of 4.50 percent
in March of 1999 and a record low of 2.70 percent in August of 2012.

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2.0 IMPACT TO MALAYSIA

Unemployment issues is very important in every countries, especially developing

country with a tremendous population. High unemployment means that labor
resources are not being used efficiently. Therefore, every government need full
employment to be a big macroeconomic goals. This essential issue often being
included in the government policy or agenda for parliament debate and in every
discussion annually. After a long period of discussion and debate, it seems no ultimate
solution has been found to completely eliminate unemployment.

This issues bring us the impact to government and economic. For example,
Unemployment affects the unemployed individual and his family, not only with
respect to income, but also with respect to health and mortality. The effects of
unemployment on the economy are equally severe which is in 1 percent increase in
unemployment reduces the GDP by 2 percent. The criminal consequences of
unemployment are mixed, so when unemployment are high it might affect the
criminal consequences.

Spending on infrastructure will create more jobs opportunity (Kenyon, 1997).

Government spending can raise labor productivity and also complements the
investment from private sectors. Subsequently, the demand for labor will increase,
hence, decreases the unemployment rate. Unemployment can causes the lack of
investor in our countries. This is because no employment the expenditure of
household also declined. So if lack of expenditure the revenue of business company
will be decreased. So in this case the investor will get the little amount of their return.

However, there are benefits of unemployment in Malaysia which is system is a

benefit for eligible workers who become unemployed. Unemployment benefits consist
of unemployment insurance and unemployment assistance. Unemployment benefits
are available to the eligible unemployed only. The term “eligible” here means an
unemployed individual which is in a condition of ready, willing and able to work on
the go (Eva Liu, Walter and Kwong, 2000). in addition, government didn’t need to
higher their expenditure in order to employed the unemployment graduate. In this
case also, more of local labour are likely to import foreign worker.

Next, severance pay, in Malaysia, is regarded as a form of unemployment-related

benefit for both employers and employees (Eva Liu, Walter and Kwong, 2000). Those

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workers, whose earnings which are not exceeding RM 1500 per month, irrespective of
their earnings are covered under the employment Act 1955, will be provided for
severance pay. Severance pay is known as retrenchment benefits, or termination and
lay-off benefits in Malaysia.

Hence, whatever the case is, must have the benefit that implement on every
individual. However, government have to play their role to overcome this major
issues in every country.

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3.0 SOLUTION BY MALAYSIA GOVERNMENT

Unemployment among graduate become a serious problem in every country

where all of this can effect the rates of GDP. In this case government responsibility
are too important to overcome this issue to affect the economic growth. Firstly, the
government needs to urgently solve the problem of the mismatch of supply and
demand of labour force and skills. The scholarships must be allocation as well as for
different courses in universities and vocational schools. The courses at tertiary
institutions should be more industry-driven in curriculum. There should be aggressive
in any programme that to be more skilled to improvement of unemployed graduates
skilled who are now “stuck” with the consequences of the mismatch between supply
and demand.

Secondly, increased the technical and soft skill defence which is important for the
respective ministries, agencies and academia to collaborate with associations and
industry players by way of internship programme. More over, since we are living in a
fast-changing world where the job market changes so quickly, our tertiary institutions
need to equip graduates with more transferable skills which skills that can be
“transferred” across different industries, such as the ability to learn new things
quickly and independently, to adapt to new technologies and environments, and to
think analytically, critically and creatively. Other desirable traits is including
communication and leadership skills as a good working attitude as well as good
interpersonal and international.

Next, the government needs a comprehensive carrot-and-stick system to facilitate

the adoption of technology by businesses. It is high time to move away from being a
labour-intensive economy and move towards becoming a knowledge and
skills-intensive economy. It would be by restricting industries’ reliance on foreign
labour gradually while at the same time providing attractive incentives in terms of
subsidies and grants for the industries to invest in technology. Transformation of
businesses from labour-driven to knowledge-driven can build medium and
high-skilled jobs that pay higher wages as well as improvement of business
profitability and create long-term competitiveness.

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 Then, Only 2% of the nation’s graduates are running their own businesses upon
graduation, one of the lowest percentages among other countries in the region. Hence,
youths generation must be empowered to venture into entrepreneurship. Small and
medium enterprises create more than 70% of the jobs in Malaysia, thus more jobs
could be created for youths if the young willing to start their own businesses.
Therefore, there should be special incentive programme for youth entrepreneurship. In
fact, because of their exposure to the internet from a young age, this generation of
Malaysians has a much wider worldview as well as greater creativity and potential to
think outside of the box than previous generations. The only hope of nation is the
young generation.

Finally, Malaysia needs strong institutions to command market confidence for

private sector development, so that individuals and firms can plan and invest. There
must be prudent economic policies which encourage strategic investment in
infrastructure and stimulate innovation, remove market of rigid or bureaucracy and
enhance regional integration such as Asian trade, labour and border control. In fact,
this should be an institutionalized accountability structure to ensure that whatever the
plan is, it’s may include those discussed above, is executed properly to improve the
job fields for youths.

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4.0 RECOMMENDATION

National option The committee arrived at its preferred national strategy and
emphasizing versatility and information which is after considering alternative
approaches. For example, it might seem tempting to remove any apparent imbalance
between supply and demand by adjusting student enrollment but its better to not doing
anything.

Another version of this suggestion is that we should set out to adjust the mix of
master's degrees and PhD degrees that are awarded. For example, whether
PhD-holders are not over educated for the positions they fill, especially for non
research jobs. Whether a master's degree would suffice. But can one actually conclude
that the PhD experience is better than other field of class.

In practice, government should take the solution to open many market or field in
economic to open more part to take labour from the fresh graduates. In addition, make
the qualification of the graduates to be more able in practical to work in every place.
So, its no need to them go to work from other to other station just need the experience.
Because they need job to have experience. Its no equal if they are still young but need
to sacrifice their young age just to have an experienced to fulfil the qualification of
job.

For the youth or graduates unemployment, its no need to complicated in choosing

their job. Just do what they called to do and just grateful for whatever job did they got.
Rather than that, they can manage their business, start their own work in order to
create or build more vacancies that need the fresh graduates.

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5.0 CONCLUSION

In conclusion, we know that the unemployment become the serious issue in every
nation. Every government of countries find way to resolve this problem since
previous year. We also know that our government are really try hard to overcome this
problem. However, we should not just hope the government to play their role. All of
this can achieve the useful of labour if all citizen also plays their role.

This is because, the cause of unemployment also from the student itself where
they didn’t able or willing to start their job which not in their field. They dream the
good job and want their salary higher even though they are not much in experiences.
So, youth must also realized to accept whatever job that they got. In this case the
unemployment rate can reduce in percent even its not much but its better to try and try.
Therefore, all parties should plays their role and responsibility as an citizen on this
country. So the problem will be reduce together.

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6.0 REFERENCES

Book

1. Mohd. S & Zaliza H. (2014) University Pendidikan Sultan Idris University

Technology Malaysia, Semenanjung Malaysia.

Online

2. Discussion o.m.r.I (2019). retrieved from,

https://www.nap.edu/read/4935/chapter/7#77

3. CaseStudy (2019, Nov 2) retrieved from,

http://hrmars.com/hrmars_papers/Factors_Influencing_Unemployment_among_F
resh_Graduates_A_Case_Study_in_Klang_Valley,_Malaysia.pdf

4. FMT (2018, Jan 26), retrieved from,

http://hrmars.com/hrmars_papers/Factors_Influencing_Unemployment_among_F
resh_Graduates_A_Case_Study_in_Klang_Valley,_Malaysia.pdf

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