The Star:
Fresh graduate unemployment on the rise
By DIYANA PFORDTEN
Tuesday, 21 Jan 2025
Photo: 123rf.com
PETALING JAYA: While the number of degree and diploma holders who manage to land jobs is going up in Malaysia, one specific group is struggling to find employment: fresh graduates.
According to the Statistics Department, the unemployment rate for graduates below the age of 25 has gradually increased since 2021 and rose above pre-pandemic levels in 2023 to 17.6% or 72,100 people.
Experts say with more graduates entering the job force, the mismatch between subjects studied by university graduates and industry needs, coupled with outdated university curriculum and resistance among graduates to adapt to changes, are contributing to the rising unemployment.
They said the government needs to strengthen technical and vocational education and training (TVET) to better meet industry demands and reduce the surplus of graduates in industries with lower demand.
“The undersupply of Science, Technology, Engineering, and Mathematics (STEM) graduates, along with the oversupply of graduates in arts and social sciences, are structural factors contributing to graduate unemployment and underemployment,” said economic expert Dr Yeah Kim Leng.
The Sunway University economics professor said that since TVET is focused on meeting industry needs, the government could consider making it mainstream to reduce graduate unemployment.
He said this move could channel students away from studies that are in excess supply.
ALSO READ: Fresh graduates face employment challenges as AI takes over
Prof Yeah added that certain high-growth TVET industries are facing a notable labour shortage, especially semiconductors, data centres and renewable energy.
“Besides introducing programmes that meet industry’s skills needs, universities also need to emphasise internships, practical training and job placements to produce industry-ready graduates,” he said.
He said graduates must also be flexible in learning new skills, be adaptable and embrace life-long learning.
During the height of the pandemic in 2020, unemployment among fresh graduates dropped, with fewer graduates entering the job market as final-year students postponed their graduation or opted to continue studying.
However, the Statistics Department's figures show that the number of unemployed graduates below 25 years old is rising again each year.
Diploma holders make up 62% of the unemployment in this age group, while the remaining 38% are degree holders.
Males make up most unemployed diploma holders, while females are more dominant among unemployed degree holders.
According to the department, those 24 years and below and 25 to 34 years old make up 80% of the total number of unemployed graduates.
Human resources consultant Usha Devi K. Arumugam said the government’s initiative that focuses on TVET and the proposed higher starting salary for such graduates can also encourage more students to pursue TVET and increase their employability.
“TalentCorp’s MyNext programme is another good initiative to expose undergraduates to the real working world,” she said.
She said the government could support related industries to create more jobs that are commensurate with or requires a basic degree.
“For example, data centres and the business process outsourcing (BPO) industry need more graduates compared with the e-hailing industry.
“Tech-based manufacturing could also offer higher job opportunities for graduates compared with manual-based manufacturing,” said Usha Devi.
She added that graduates also need to expand their knowledge and skills set, as well as network and connect with industry experts, to improve their employability.
Malaysian Human Resources Association president Zarina Ismail said with approximately 600,000 graduates produced annually by both public and private higher learning institutions, the country faces the challenge of providing enough suitable job opportunities.
“Many graduates are willing to take any job to meet their needs, such as repaying student loans. A notable number also turn to freelance and gig opportunities,” she said.
She added that graduates need to acquire skills that are directly relevant to their desired job sectors, but there is a challenge in terms of inadequate implementation of industrial training, often due to a lack of available positions or issues arising from the students themselves.
She also encouraged the government to control the influx of expatriates, insisting on strict adherence to the duration of their stay and enforcement of knowledge and technical skills transfer.
For certain sectors, Zarina suggested the formation of regulatory bodies such as the Construction Industry Development Board (CIDB) and the Board of Engineers for engineering.
To address these challenges, she advocates for government policies that mandate skills training for every graduate and for higher investment in high-technology industries rather than labour-intensive jobs like assembly work.
"University course offerings should also be more flexible and be aligned with industry needs,” said Zarina.
Prof Dr Razali Hassan from the Universiti Tun Hussein Onn Malaysia Faculty of Technical and Vocational Education said TVET programmes need to be up to speed with industry advancement to avoid graduates being trained in obsolete technologies or methods.
“Curriculum reviews are not done often, and it takes a long time to improve the curriculum according to industry demand,” he said.
He added that the stigma of TVET qualifications being perceived as less prestigious than academic degrees can also dissuade students, compounded by a lack of recognition from employers.
“This is considered a serious issue, especially when most of the graduate refuse to join higher TVET (institutes) and grasp the opportunity to reskill or upskill according to industry demand,” he said.
Prof Razali said other challenges such as the lack of soft skills training, youth migration from villages to cities to end up competing with foreign workers, and insufficient career guidance, all need to be addressed to improve graduate employability.
Tuesday, 21 Jan 2025
7:00 AM MYT
Photo: 123rf.com
PETALING JAYA: While the number of degree and diploma holders who manage to land jobs is going up in Malaysia, one specific group is struggling to find employment: fresh graduates.
According to the Statistics Department, the unemployment rate for graduates below the age of 25 has gradually increased since 2021 and rose above pre-pandemic levels in 2023 to 17.6% or 72,100 people.
Experts say with more graduates entering the job force, the mismatch between subjects studied by university graduates and industry needs, coupled with outdated university curriculum and resistance among graduates to adapt to changes, are contributing to the rising unemployment.
They said the government needs to strengthen technical and vocational education and training (TVET) to better meet industry demands and reduce the surplus of graduates in industries with lower demand.
“The undersupply of Science, Technology, Engineering, and Mathematics (STEM) graduates, along with the oversupply of graduates in arts and social sciences, are structural factors contributing to graduate unemployment and underemployment,” said economic expert Dr Yeah Kim Leng.
The Sunway University economics professor said that since TVET is focused on meeting industry needs, the government could consider making it mainstream to reduce graduate unemployment.
He said this move could channel students away from studies that are in excess supply.
ALSO READ: Fresh graduates face employment challenges as AI takes over
Prof Yeah added that certain high-growth TVET industries are facing a notable labour shortage, especially semiconductors, data centres and renewable energy.
“Besides introducing programmes that meet industry’s skills needs, universities also need to emphasise internships, practical training and job placements to produce industry-ready graduates,” he said.
He said graduates must also be flexible in learning new skills, be adaptable and embrace life-long learning.
During the height of the pandemic in 2020, unemployment among fresh graduates dropped, with fewer graduates entering the job market as final-year students postponed their graduation or opted to continue studying.
However, the Statistics Department's figures show that the number of unemployed graduates below 25 years old is rising again each year.
Diploma holders make up 62% of the unemployment in this age group, while the remaining 38% are degree holders.
Males make up most unemployed diploma holders, while females are more dominant among unemployed degree holders.
According to the department, those 24 years and below and 25 to 34 years old make up 80% of the total number of unemployed graduates.
Human resources consultant Usha Devi K. Arumugam said the government’s initiative that focuses on TVET and the proposed higher starting salary for such graduates can also encourage more students to pursue TVET and increase their employability.
“TalentCorp’s MyNext programme is another good initiative to expose undergraduates to the real working world,” she said.
She said the government could support related industries to create more jobs that are commensurate with or requires a basic degree.
“For example, data centres and the business process outsourcing (BPO) industry need more graduates compared with the e-hailing industry.
“Tech-based manufacturing could also offer higher job opportunities for graduates compared with manual-based manufacturing,” said Usha Devi.
She added that graduates also need to expand their knowledge and skills set, as well as network and connect with industry experts, to improve their employability.
Malaysian Human Resources Association president Zarina Ismail said with approximately 600,000 graduates produced annually by both public and private higher learning institutions, the country faces the challenge of providing enough suitable job opportunities.
“Many graduates are willing to take any job to meet their needs, such as repaying student loans. A notable number also turn to freelance and gig opportunities,” she said.
She added that graduates need to acquire skills that are directly relevant to their desired job sectors, but there is a challenge in terms of inadequate implementation of industrial training, often due to a lack of available positions or issues arising from the students themselves.
She also encouraged the government to control the influx of expatriates, insisting on strict adherence to the duration of their stay and enforcement of knowledge and technical skills transfer.
For certain sectors, Zarina suggested the formation of regulatory bodies such as the Construction Industry Development Board (CIDB) and the Board of Engineers for engineering.
To address these challenges, she advocates for government policies that mandate skills training for every graduate and for higher investment in high-technology industries rather than labour-intensive jobs like assembly work.
"University course offerings should also be more flexible and be aligned with industry needs,” said Zarina.
Prof Dr Razali Hassan from the Universiti Tun Hussein Onn Malaysia Faculty of Technical and Vocational Education said TVET programmes need to be up to speed with industry advancement to avoid graduates being trained in obsolete technologies or methods.
“Curriculum reviews are not done often, and it takes a long time to improve the curriculum according to industry demand,” he said.
He added that the stigma of TVET qualifications being perceived as less prestigious than academic degrees can also dissuade students, compounded by a lack of recognition from employers.
“This is considered a serious issue, especially when most of the graduate refuse to join higher TVET (institutes) and grasp the opportunity to reskill or upskill according to industry demand,” he said.
Prof Razali said other challenges such as the lack of soft skills training, youth migration from villages to cities to end up competing with foreign workers, and insufficient career guidance, all need to be addressed to improve graduate employability.
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