Impact of Unemployment in Malaysia: Assignment

Impact of Unemployment over the economic growth of Malaysia

Table of Contents
Introduction:...............................................................................................................................3
Content:......................................................................................................................................3
Summary:.................................................................................................................................11
References:...............................................................................................................................12

Introduction:
Malaysia is a prominent nation of South East Asia and is covering the parts of the Malay
Peninsula and the island of Borneo. The nation is a well known tourist destination and is
attracting thousands of tourists across the globe for its beautiful beaches. The nation is
constituted with thirteen states and three federal territories.
With a 31.9 million [as per World Bank, 2016] population the country is the 44th most
populous nation of the world and the population of the country is growing at a rate of 1.95%
per anunm. The multi-ethnic and multi-cultural profile [Malay 50.1%, Chinese 22.6%,
indigenous 11.8%, Indian 6.7%, other 0.7%, non-citizens 8.2%] of the country has a big
impact over the political and economic conditions of the country(Jomo, K.S., 2016).
The current rate of unemployment in Malaysia is around 3.5% [July, 2017].The average rate
of inflation of the country was around 2.09% in the year of 2016.According to the world bank
the GDP per capita of the country was around 9,502.57 USD in 2016(Ismail, 2011).The study
of the historical data reveals the fact that the GDP per capita of the country has registered a
continuous growth from 1995 onwards [$4328].
In order to reduce the level of youth unemployment the government of Malaysia has taken
the policy decisions to develop effective strategies in order to transform the national
education system. The institutions of higher learning will be empowered with greater
autonomy and accountability to produce technologically savvy well educated graduates who
will be capable to handle the recent technology challenges and to add value to the technical
manufacturing centre of the country.
Content:
Current state of Unemployment in the country:
The study of the historical data regarding the rate of unemployment reveals the fact that the
average rate of unemployment for the country was around 3.28% for the period between
1998-2017.The country has seen an all time high rate of inflation of 4.50% in March,
1999.The current rate of unemployment of the country is around 3.5% and by 2020 it is
expected that the rate of unemployment of the country will stay around 2.75%( Lucas and
Verry, 2016).

Figure-1: Unemployment rate of Malaysia from 2010 to 2020
(Source: Statista, 2017))
Figure-2: Unemployment as per age group, 2015 (‘000 people)
(Source:Ibrahim and Mahyuddin, 2017)
The figure-2 describes that 61% of the age group is concentrated within the age group of 15-
24 years.20% of the unemployment is present in the age group of 25-29 years. Thus majority
of the countries unemployed workforce are from the youth population.Thus the youth
population is the most vulnerable group so far the problem of unemployment is concerned in
Malaysia (Ibrahim and Mahyuddin, 2017).