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The Number Of Unemployed Malaysian Youth Is Reaching An Alarming Rate

Young people are basically competing with matured adults with more work experience.


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The Number Of Unemployed Malaysian Youth Is Reaching An Alarming Rate
Image: Shaveh
This is worrying.

According to a report by The Star compiled by AmBank Head of Research and Chief Economist Anthony Dass, the country's youth unemployment rate is 10.8 per cent in 2017, more than three times higher than the overall unemployment at about 3.4 per cent.

This includes unemployed individuals aged between 15 and 24, which covers those who have just completed secondary education or graduated from colleges and universities. 

So, why are local employers not hiring young people in Malaysia? More so, why can't our youth seem to secure the right jobs here?

One of the main reasons by Dass is slower hiring as many businesses are being cautious about expanding their workforce due to moderate economic performance.

There is also a wide gap between unemployed young men and women. 

The labour force participation rate among young males is reportedly at 53 per cent compared to 37 per cent for young females - that's a 16 per cent difference!

The global economy is on the road to recovery, but Malaysian youth are still finding it hard to get jobs.
Over the years, the workforce as a whole has become more educated.

However, jobs created are mainly focused in the low to mid-skilled jobs. Other sectors like domestic industries would rather attempt to stay cost efficient and depend on cheap labour, including hiring foreign workers.

The report predicted that jobs in the service sector will be the main driver in creating more job opportunities in the future, while agriculture and manufacturing employment continue to decline.

Besides that, another reason for the high youth unemployment is also because many find it difficult to secure jobs right after graduating

These young people are basically competing with mature adults who have more exposure and work experience, while everyone is facing the exact same economic situation.

This is especially true when there is more supply than demand in labour, where more people are competing for a limited number of jobs. 

In a way, employers would no doubt turn to adults with a longer history of work experience.

The youth are competing with more mature and experienced working adults.
Young people also often lack in terms of job search experience. For example, many youth rely on finding work through family or friends, or by word-of-mouth. Otherwise, they would not know where or how to look for jobs.

On the other hand, adults have the advantage of references from previous employers or colleagues, as well as work connections.

In Malaysia, the employment rate reportedly shows that 52 per cent of those employed are mid-skilled, while 28 per cent are low-skilled. 

Dass stressed the importance of addressing the failure of the basic education system. There is a mismatch between the skills required for jobs and the level of skills our youth have when they leave school.

So, there is an urgent need for educational reforms.

Tertiary education in Malaysia should not only focus on academic, but also on industrial training, communication skills and developing self-esteem. 

"It is important to look at the levels of the education system across the board and institute changes across all levels of the education system so that we can place the right person in the right job," Dass wrote.

We need to start thinking about the traditional education system here, and how universities and apprenticeships should enhance the skills of youth for jobs.

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