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This report presents statistics on graduates for the period of 2016 to 2019. The statistics was based on compilation of various data sources namely Labour Force Survey, Higher Education Statistics and Graduate Tracers Study. In this report, graduates are defined as individuals aged 15 years and over with the highest certificate obtained from universities, colleges, polytechnics, recognised bodies or equivalent, in which the duration of study is at least two years. Graduates are classified into two categories of certification namely Diploma and Degree.

Graduates' salaries & wages statistics are also presented in this report to provide information on their earnings in Malaysia. This statistic is produced based on Salaries & Wages Survey which collect information of monthly salaries & wages for full-time equivalent principal occupation of paid employees.

This report provides disaggregation by demographic and socioeconomic characteristics of age group, sex, ethnic group, the highest certificate obtained, strata, state, occupation, status in employment, skill level and economic activity.
Principal Statistics of Graduates
The number of graduates in Malaysia was 5.29 million persons in 2019, increased 6.9 per cent from 4.94 million persons in 2018 as shown in Chart 1. In the meantime, graduates in the labour force went up 6.8 per cent to 4.42 million persons (2018: 4.14 million persons). Graduates labour force participation rate (GLFPR) was 83.5 per cent, decreased 0.1 percentage point as against 83.6 per cent in 2018.

Out of total graduates in the labour force, 96.1 per cent (4.25 million persons) were employed, increased 6.9 per cent from 3.97 million persons in 2018. Meanwhile, graduates unemployment rate remained at 3.9 per cent (170.3 thousand persons). In addition, graduates outside labour force rose 7.6 per cent to 871.4 thousand persons (2018: 808.5 thousand persons).

Chart 1: Principal statistics of graduates, Malaysia, 2019 ('000)
Employed Graduates Statistics
In 2019, number of employed graduates was 4.25 million persons, increased 6.9 per cent from 2018 (3.97 million persons). Employed graduates by skill levels shown that skilled category accounted for 73.3 per cent (3.11 million persons) in 2019 and the highest percentage share was in Professionals occupation category with 45.1 per cent (1.91 million persons) followed by Technicians and associate professionals at 18.6 per cent (791.9 thousand persons).

Additionally, graduates who were employed in semi-skilled category comprised of 25.6 per cent (1.09 million persons). Out of this category, Clerical support workers and Services and sales workers contributed 10.1 per cent and 9.5 per cent respectively. This was followed by Craft and related trades workers at 3.0 per cent (129.2 thousand persons). The remaining of 1.1 per cent were employed in low-skilled category (47.9 thousand persons).

From the economic activity perspective, graduates were largely employed in Services sector with a share of 79.6 per cent (3.38 million persons). In addition, Manufacturing and Construction sectors contributed 12.7 per cent (538.6 thousand persons) and 5.3 per cent (226.1 thousand persons) respectively. Employed graduates in Agriculture sector comprised of 1.4 per cent (57.6 thousand persons) while Mining & Quarrying sector comprised of 1.0 per cent (43.2 thousand persons).
Unemployed Graduates Statistics
The number of unemployed graduates in 2019 was 170.3 thousand persons, increased 5.5 per cent (2018: 161.3 thousand persons). Active unemployed graduates accounted for 74.8 per cent (127.4 thousand persons) to the total unemployed graduates. More than half of active unemployed graduates were unemployed less than three months which was 51.6 per cent (65.7 thousand persons) while 29.5 per cent (37.5 thousand persons) of them were unemployed within three months and less than six months. On the other hand, 10.9 per cent (13.9 thousand persons) of them were unemployed within six months and less than a year whereas another 8.1 per cent (10.3 thousand persons) were unemployed more than a year.

Meanwhile, inactive unemployed graduates comprised of 25.2 per cent (42.8 thousand persons) of the overall unemployed graduates.
Graduates Outside Labour Force Statistics
The number of graduates outside labour force in 2019 was 869.8 thousand persons, increased 7.6 per cent (2018: 808.5 thousand persons). Housework/ family responsibilities was the most significant reasons for graduates outside labour force which accounted for 36.8 per cent (319.9 thousand persons) in 2019 followed by retired/ old age at 30.0 per cent (260.7 thousand persons), schooling/ training programme at 27.6 per cent (239.9 thousand persons) and graduates who were not interested/ just complete study at 3.3 per cent (28.4 thousand persons).

In the meantime, the percentage share of going for further studies was 1.0 per cent (8.6 thousand persons) and disabled at 1.4 per cent (12.4 thousand persons).

The detailed information and technical notes are published in the publication of Graduates Statistics, 2019. This publication is accessible and downloadable free of charge through the eStatistik application in DOSM web page, www.dosm.gov.my.
Released By:
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
DrUzir_Mahidin Dr_Uzir
16 July 2020 Contact person:

Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : yusrizal.razak[at]dosm.gov.my

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Department of Statistics Malaysia Official Portal

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This report presents statistics on graduates for the period of 2016 to 2019. The statistics was based on compilation of various data sources namely Labour Force Survey, Higher Education Statistics and Graduate Tracers Study.

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Analysis of data 1

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SEPTEMBER 10 - The youth unemployment rate in Malaysia, at 10.9 per cent officially, is more than triple the national rate of 3.3 per cent and has been gradually rising over the past decade, exacerbating the disgruntlement of a youth constituency that was instrumental in swinging the vote that brought the Pakatan Harapan coalition to power in the 2018 general election.

Unemployed youth make up almost 60 per cent of the 504,000 currently unemployed.

Then in opposition, Pakatan Harapan campaigned hard on youth-friendly policies with firm pledges to tackle youth unemployment. But after more than a year of unfulfilled promises like amending the Universities & Colleges Act to allow students to become involved in politics, disillusionment is increasing rapidly.

A recent Merdeka Center survey of voter satisfaction found that 42 per cent (53 per cent among Malays) of the 20-30 years age group were either dissatisfied or angry with the Pakatan Harapan government.

Three distinct youth unemployment segments can be identified:

Graduate youth. The Ministry of Education reported that 57,000 of 173,000 of last year's graduates remained jobless after looking for a job for six months.

Rural youth, those who principally remain at home with their parents and are not working, and

Urban youth, comprising non-graduates who are looking for employment in retail, administration, distribution, manufacturing, hospitality, or other service industries.
Graduates - Structural mismatch and over-supply
The prime reason for graduate youth unemployment is the mismatch of graduate qualifications with the country's workforce needs. Of 1.47 million vacancies, 86.9 per cent are for low skilled jobs. Only 4.7 per cent of those advertised required any tertiary qualifications. Graduate unemployment was 9.6 per cent or 204,000 at the end of 2018.

The Ministry of Education decides what courses universities offer rather than market forces. This is where the mismatches are coming from.

Malaysian universities are currently overcapacity and producing too many graduates to what can be generally absorbed into domestic Malaysian workforce.
Rural youth - The hidden segment
Rural youth unemployment has been endemic in Malaysia's kampungs over the past decade. Asia Sentinel visited Northern Malaysia and the East Coast to speak to civil servants and police officers on the ground about the problem.

It is estimated that rural youth unemployment could be as high 75-90,000. This is statistically uncounted as many still live with their families and haven't claimed they are actively looking for work.

This group is primarily only educated to secondary school, with many not finishing. According to civil servants on the ground, rural youths don't feel motivated to travel to towns to take up jobs that pay low wages.

Many can only speak Malay, have no skills and are not self-disciplined. In addition, many non-skilled jobs are taken by foreign workers which makes these jobs socially unappealing to local youths.

Serving people isn't natural to this group and those who try to work in a restaurant or shop usually only last a few days and give up.

According to police officers on the ground, drug taking is epidemic. Youths usually start off smoking the local narcotic leaves of the ketum tree. Many progress to other drugs, which they have to buy.

This has led to a dramatic increase in crime, including house break-ins, motorbike thefts and shoplifting. Some even rob their parents and siblings to pay for their drug habits, often holding their parents at knife-point.

These crimes are often hidden from the system where police prefer to work on solutions with the parents rather than going through the formal legal processes.

Youths in the kampungs are often idle, bored, lose self-esteem, and develop apathy towards life in general. This feeling of hopelessness often leads to bouts of depression that are never diagnosed or treated.

The few employers in rural areas prefer older employees who are perceived to be more responsible and reliable.
Urban youth - Another hidden segment
This segment is also under-reported as many youths are also still living with their parents and not actively looking for work. The past couple of years have seen job redundancies where younger workers are being laid off before more senior workers. This added more than 21,000 to unemployment levels last year.

A Job Street survey found the 58 per cent are choosy about what job they do or company they work for, 58 per cent are considered of poor character, attitude or personality, 52 per cent have a poor command of English, 49 per cent have poor communication skills, and 66 per cent have unrealistic salary expectations.

Tolerance within Malay culture has decreased towards jobs within the hotel, hospitality, and tourism industries, putting a massive block on employment prospects.

A generation ago, these three sectors were considered acceptable. Today these jobs are considered dirty, low and dangerous.

Serving alcohol to others is now almost taboo in Malay culture. Consequently, the hotel, hospitality and tourism industries prefer employing foreign workers to avoid cultural and religious issues.

Foreign investment coming into Malaysia tends to require low and unskilled workers. These jobs offer low salaries and there is a need to leave home to work, which doesn't appeal to local youth. FDI in Malaysia is creating jobs for foreign rather than local workers.
Government inactivity
One of the major problems in tackling youth unemployment is that the government hasn't analysed the root causes of youth unemployment, which is also grossly understated.

Statistical definitions which don't count people who are not actively looking for work is hiding additional youth unemployment in the urban areas and the rural heartlands.

These hidden segments may add as much as another 35-50 per cent to youth unemployment figures.

Prime Minister Tun Dr Mahathir Mohamad during parliamentary question time last July said that the "unemployment rate among youth between 15 and 24 years old is a normal phenomenon faced by developing and developed nations .(where) This group is said to be in a transition process between a learning environment and the realities of the employment market."

This gives the impression the government isn't really serious about the problem, especially with the ideas to tackle the problem coming from the 28-year-old Youth and Sports Minister Syed Saddiq Syed Abdul Rahman.

The minister opposed raising the retirement age from 60 to 65 on the grounds that older workers are taking potential jobs from younger unemployed people.

Syed Saddiq also suggested that the Indonesian motorcycle hailing service Go-Jek could be introduced into Malaysia to create jobs. This has been met with fierce criticism because of the danger of motorcycles on Malaysian roads and competition Go-Jek would give existing taxi drivers.

Unemployed people who have never been in the workplace are not covered by the EIS unemployment insurance scheme. This is forcing youths to stay at home with without being able to make any financial contribution, straining households financially.
Education system problems
The root cause of graduate unemployment is the mismatch and surplus of graduates to what industry really needs. What is being taught in universities needs urgent review. In addition, there are just too many university places available for the needs of the local workforce.

Technical and Vocational Educational Training (TVET) needs urgent review. There should be more focus in providing practical skills and trades through certificates, rather than diplomas and degrees.

These programmes have to outreach to those who need them in the rural heartlands, rather than being centralised in large city and town campuses.

Entrepreneurship has been seen as the " magic bullet " to ease youth unemployment. This is a misnomer.

Entrepreneurship is about developing new startups based on a source of innovation, which is very risky. Fewer than one in 10 startup last more than five years.

The emphasis needs to be placed on teaching youth basic trades to provide a small income, and teach those a little more ambitious the concepts of small business, rather than entrepreneurship.

In the Malay heartlands, youth may be much more attracted to micro-businesses that fit into their lifestyle than a business or job they must fit into.

Rather than educational institutions focusing on equipping youth with industry 4.0 skills, should focus on turning kampungs into sustainable socio-eco-systems that assists youth in enriching their lives.

Under such a premise, the whole youth training pedagogy needs to be completely reframed to make an impact on youth unemployment in the rural heartlands.
The Achilles heel
World Bank comparative youth unemployment puts Malaysia as the second highest to Indonesia in the region. With the hidden unemployment segments added in, Malaysian youth unemployment is probably more like 15-18 per cent.

A whole generation of economically and socially disenfranchised youth is growing up. This will have its consequences.

This is the legacy of successive governments which have blindly accepted foreign investment projects that employ foreign rather than local workers.

This is the legacy of central planning in public education. Foreign workers have kept wages down and created a social stigma for young locals taking up unskilled work.

The enthusiasm of government to build so many universities has done a great disservice to vocational education, which is considered the last educational choice by Malaysians.

Education needs a massive rethink. It needs to be radically skewed towards vocational training. Not the large polytechnics, but small community centres that bring informal skills-based training to those who need it.

The Pakatan Harapan government has been found wanting in reform. Now we are finding that it's also lacking in fundamental economic management.

The major issue for the government today is youth unemployment. This is the constituency that brought Pakatan Harapan into government and this will be the constituency that also boots them out of government next election.

The disappearance and silence of Pakatan Harapan youth leaders since the election is symbolic of the problem. If youth unemployment stays as it is, then prepare for a possible change of government next election.
* This article was originally published in the Asia Sentinel ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.

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Malaysia faces youth unemployment crisis - Murray Hunter | Malay Mail

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SEPTEMBER 10 - The youth unemployment rate in Malaysia, at 10.9 per cent officially, is more than triple the national rate of 3.3 per cent and has been gradually rising over the past decade, exacerbating the disgruntlement of a youth constituency that was instrumental in swinging the vote that...

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Recently, Malaysian people have been taught facing on the issue of high unemployment rates among the local graduates. This issue has been a phenomenon to the current news as it has been aired on the television, newspaper, internet and others agency. There are several problems of the unemployment among Malaysia graduates such as lack of skill experiences, Malaysia graduates demand too much on salary and employer does not believe in fresh graduates.

Firstly, the main problem ability of the unemployment among Malaysia graduates is the lack of skills and experiences.

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Nowadays a lot of theoretical subject have been taught without implementing the practical sides and without skills you have nothing to apply to solve problem efficiently. Then, they are lacking of English command skill and poor communication skills that make them difficult to get a good job. Next, the courses that they are took was not suitable and relevant to the industry. Thus, it is very hard for them to get appropriate job in the market.

Secondly, another problem of unemployment is Malaysia graduates demand too much on salary at the unreasonable. They want the salary more than what they are deserve. Besides that, they want a job location must near from their house because easy for them to commute from their house to the work place. Thus, employer are expecting graduates who with experiences from different areas.

Last but not least, employer does not believe in fresh graduate's ability. Fresh graduates have no experiences. The employer nowadays requires graduates to have some work experiences in order to requirement of qualified.

Next, employer expectation of fresh graduates is also one of the factors that lead to the unemployment of graduates. Thus, graduates have low confidence or low soft esteem especially in job interview.

In conclusion, fresh graduates from universities or colleges must prepare themselves in term of mental and physical before getting into the working
world. Thus, all of skills and experiences, demanding on salary and employer does not believe in fresh graduates are the causes of unemployment among Malaysian graduates.

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The Problems of Unemployment Among Malaysia Graduates. Free Essay Example

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Views Views Recently, Malaysian people have been taught facing on the issue of high unemployment rates among the local graduates. This issue has been a phenomenon to the current news as it has been aired on the television, newspaper, internet and others agency.

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More than 1.7 million foreign workers in Malaysia; majority from Indonesia | New Straits Times

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KUALA LUMPUR: There are currently 1,781,598 foreign workers in the country as of 30 June 2017, says the Home Ministry.

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KUALA LUMPUR: An incredible 81.5% or four out of five jobs created in 2016 went to foreign workers, even as graduate unemployment saw a sharp increase from 2011, according to Bank Negara Malaysia (BNM) which has cautioned a low-wage, low-production strategy is untenable in the longer term and risks putting the country behind its rivals.

In 2015, 64.4% of jobs created were taken up by foreigners, with the figure shooting up to 81.5% in 2016, the BNM Annual Report 2017 revealed.

Foreign workers were occupying an increasing number of jobs as graduate unemployment trended up to 4.1% in 2016.

"The number of graduates in Malaysia increased by around 880,000 persons over the similar period, but with a corresponding high-skilled job creation of only 650,000 persons. This translates into increasing graduate unemployment from 2011 to 2016, outstripping that of non-graduates," BNM observed in its annual report, released yesterday.

Although foreign workers as a percentage of the labour force trended downwards from a peak of 18.8% in 2007 to 12% in 2017, they still hold more than a fifth of jobs in agriculture, construction and manufacturing.

Of the jobs created, an increasing number of them are low-skilled, doubling to 16% over the period 2011-2017 from 8% in 2002-2010. Over the same period, the number of high-skilled jobs shrank to 37% from 45%.

According to the central bank, Malaysia's dependence on low-skilled foreign workers shapes its reputation as a labour-intensive, low-cost destination for foreign investors, many of whom seek to primarily leverage its relative ease of hiring foreign workers and lower labour costs.

"In the end, this self-reinforcing image further locks Malaysia into this low-cost bind that would require significant resources to undo. This also worsens the displacement of local talent migrating to higher-paying employment countries, culminating in a brain drain for Malaysia," it cautioned.

Meanwhile, the availability of cheap foreign workers allows employers to keep wages low, which consequently risks Malaysia being trapped in a low-wage and low-skill conundrum.

"This distorts the natural wage clearing mechanisms that would have otherwise driven wages upwards. It is entirely plausible that the very high presence of foreign workers in the private sector could widen wage differentials and deter job creation for locals."

In the same vein, BNM said that as long as blue-collar wages continue to face downward pressure, employers will not be hard-pressed to adopt productivity-enhancing measures.

"Malaysia's labour-intensive methods and longer working hours are less efficient than those obtained through technological advancement and automation.

"Reliance on low-wage, low-cost production methods is an untenable long-term strategy with risks of Malaysia being left behind as its competitors are actively embarking on industrial upgrading," it said.

BNM highlighted several non-economic implications which include foreign workers' remittance, strain on public infrastructure, and the (large) presence of undocumented migrants in Malaysia.

"Many [foreign workers] also remit a significant share of their income abroad, thus reducing domestic spillovers in the domestic economy. Total outward remittances in 2017 remained sizeable at RM35.3 billion, of which the bulk was accounted for by foreign workers."

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New jobs taken by foreigners as graduate unemployment rises

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KUALA LUMPUR: An incredible 81.5% or four out of five jobs created in 2016 went to foreign workers, even as graduate unemployment saw a sharp increase from 2011, according to Bank Negara Malaysia (BNM) which has cautioned a low-wage, low-production strategy is untenable in the longer term and risks putting the country behind its rivals.