ECO4023 Macroeconomics: High Unemployment Rate Among Graduates

This ECO4023 Macroeconomics assignment analyzes the high unemployment rate among graduates in Malaysia, exploring the contributing factors, effects, and potential solutions. The introduction highlights the significant number of graduates and the concerning unemployment rate, citing statistics from various sources. The assignment delves into the reasons behind this issue, including graduates' salary expectations, lack of confidence, choosiness, and the mismatch between skills and industry demands. It also examines the economic factors, such as the shift in the economic structure from manufacturing to services. The assignment further discusses the adverse effects of unemployment, such as the loss of skills, poverty, increased crime rates, and social divisions. Finally, it proposes solutions, including developing a positive attitude towards work, exploring opportunities abroad, acquiring soft skills, and building self-confidence. The conclusion emphasizes the need for effective skills training and adaptability to overcome graduate unemployment in Malaysia.

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Individual Assignment
High Unemployment RateAmong Graduates in Malaysia
Prepared by: Ho Yee Hui (12017S31816DBM)
Total Words:

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Content
1.0 Dedicate
2.0 Introduction High Unemployment Rate Among
Graduates in Malaysia
3.0 Reason High Unemployment Rate Among Graduates in
Malaysia
4.0 Effect High Unemployment Rate Among Graduates in
Malaysia
5.0 Solution High Unemployment Rate Among Graduates in
Malaysia
6.0 Conclusion
7.0 Reference

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1.0 Dedication
I dedicate this project to God, my strong pillar, knowledge and understanding. He has been
the source of my strength throughout his program and on His wings only have I soared. I also
dedicate this work to our lecturer and my friends who has encouraged me all the way and
whose encouragement has made sure that I give it all it takes to finish that which I have
started and guided me throughout this assignment.
Thank you.
2.0 Introduction
High unemployment rate among graduates in Malaysia.
In Malaysia, there are 20 public universities and 43 private universities in Malaysia, there are
31 university colleges and nine foreign university branch campuses too. Over 300,000
students graduate in every year, but there’s only one in five fresh graduates will remain
unemployed in few months after few month or years. According to the news, there are 5.5/10
% of those unemployed are at ages of 15 and 24, typical age range that covers those who
have just finished school or moved on from universities and searching for employments,
remains determinedly high. Truth be told, worldwide youth joblessness is higher than
worldwide joblessness.
Now day, because everyone got the ability to go to university so it causes being graduates
will no longer guarantees you have a stable job.

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Malaysia needs to climb the esteem chain in its creation forms. The low-wage condition
needs to stop. What's more, one of the principal things that the strategy producers need to do
is decrease the reliance on outside specialists.
There is no doubt that there are a few segments that we can't manage without these outside
specialists, yet there are numerous regions where we can manage without them.
As expressed by the Department of Statistics Malaysia, the joblessness rates among crisp
graduates have expanded from 30% in 2013 to 34% in 2016 and national joblessness was
3.5% out of 14 million Malaysians in the labour market.
In 2015, there were 405,000 student with advanced education, and 15.3% were jobless. Just
53% of the 273,373 graduates in 2015 were utilized inside a half year of graduating. A 2016
report assessed that there were no less than 200,000 jobless graduates in Malaysia, and that
number was anticipated to rise.
3.0 Reasons Why high unemployment rate among graduates in Malaysia
As of late, Malaysian new graduates have confronted issues of joblessness, and it has turned
into a well established actuality. As years pass by, the quantity of jobless youth has risen. It
gets significantly harder for a person to apply for a vocation on the off chance that he or she
stays jobless for a specific timeframe.
Lot of employers complained that fresh graduates asked for unrealistic numbers of salaries
and benefits, a survey conducted by Job Street Malaysia found.
As result, 75 percent graduates were accounted for to request beginning pay rates of
RM2,400 while the greater part graduates requested of RM3,000 or more. So this cause 68
percent of employers had complained that the fresh graduates are asking too high for the
salary.
Seeing from crisp graduates’ perspective, they said that pay of RM3,000 every month is a
sensible number since they expected to meet their day by day costs for food, rent,
transportation, and for investment funds too. RM3,000 was really justifiable, considering the

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current typical cost for basic items for crisp graduates incorporated the reimbursement of
understudy advances. In any case, Malaysian Employers Federation (MEF) official executive
Shamsuddin Bardan said that those beginning sums would be more reasonable for those new
graduates with a master degree.
Being choosy and the lack of confidence are the fundamental variables why numerous new
alumni are as yet jobless these days, as per graduates, a main vocation and work asset
supplier. Graduates refused to accept jobs which did not only match their qualifications but
did not pay well due to their lack of experience.
Choosy graduates who refuse to settle for anything less than their dream jobs are the reason
for the high unemployment rate in Sabah, according to Tourism Culture and Environment
Minister Datuk Masidi Manjun. The graduates is extremely choosy while applying for their
work and the business is exceptionally selective too. These days, applicants are anticipating
that activity offer should accompany a bundle: a great pay, helpful working area, no move, no
work past 6pm et cetera, with everything turned in a silver platter. While, if the business is
putting 'working knowledge' as a pre-essential to land a position, when is the crisp graduates
going to land their first position? This situation influences the theme to wind up most
exceedingly terrible.
Lack of confidence hurts your chances of getting a job. To a business this absence of
certainty comes over as an absence of activity, an absence of drive. To them it's amateurish -
a sign that you're not able, a sign that they will need to walk you through each and every
stage and assignment. This isn't something they're searching for.
There are also job industries reporting that the reason for job vacancies in a working field is
because of lack of candidates, who are qualified for the posts. Consequently, this is the
reason that makes an interviewed candidate is not selected to fulfil a post as the candidate do
not meet the requirements by the industry. A study conducted by Ramlee et al. (2008) found
that nowadays graduates of Higher Educational Institutions in Malaysia have a minimum
preparation in facing the globalization and k-economy era. Subsequently, the graduates are
confronting issues in picking up a place in a working world, as they are not ready to contend
and give a full responsibility to a work. This matter is a regret because the inability for the

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Malaysian graduates to fulfil job vacancies in Malaysia resulting in the hiring of foreign
workers.
Clueless. A standout amongst the most well-known inquiry question is "The place do you see
yourself in 5 years?" The motivation behind why this frequently inquired as to whether the
hopeful comprehends the publicized position and whether s/he has a future arrangement and
recognizes what vocation way is set up for the position. Workers enter every enrollment
activity looking for "the correct individual for the correct activity" desire. They care for your
vocation objectives that you'd have in plan with the end goal to guarantee that you're
constantly spurred, engaged and prone to remain.
As a rule, in the event that you can't plainly characterize what your future arrangement is, the
standpoint is that you're not genuine with your application and might convert into an
unsuccessful application.
Continuously practice for this inquiry and the appropriate responses frequently contrasts for
each position you're applying for. My recommendation isn't to retain a content, however keep
key indicates that you'd be capable create from. Perfect reaction ought to be under 2 minutes,
keep it clear and compact.
Economy. the economy factor likewise causes why new graduates jobless. The changing of
the monetary structure and scene is a reasonable justification for the ascent in the joblessness.
For a long time, the assembling has been the most grounded part in the nation until the point
that it is currently being dynamically supplanted by the administrations division. The
administrations division requires individuals who don't just have the correct specialized
information, yet additionally the individuals who have the privilege delicate abilities-
interpersonal, communication, wisdom, maturity and are business oriented.
4.0 Effect of high unemployment rate among graduates in Malaysia.
Over the previous years, there has been a developing worry in the issue of high
unemployment rates among our local graduates. Some made it to the daily papers and even in
the web journals. This shows how genuine this issue is and we are keen on discovering why

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this occurred and to distinguish what are the causes and if conceivable accomplish an answer
for this issue. Consistently our nearby colleges, open or private higher organizations
delivered an expansive quantities of graduates however the rates of the graduates gain work
toward the day's end is shockingly low.
The impact of unemployment would incorporate the loss of significant abilities and ability of
new graduates. The jobless can't put his/her abilities to utilize.
High unemployment rate among graduates in Malaysia brings poverty, graduates will loss of
money or having no money to buy or have goods and services. Crime rate level will increase.
Crime like examples of snatching, smuggling, murder, kidnapping, and also drug business,
actually there are many cases about the graduates selling drug for the students who are still
haven graduate. That’s become crime is the most effect of unemployment nowadays.
Illiteracy rate will continue increasing, cause by unavailable funds, lack of money and
services. As a result, the economic power was going down, the shortage series made our
country lost in line.
Expanding divisions in Society, increasing the discrimination level on the community.
5.0 Solution of high unemployment rate among graduates in Malaysia
Solution of high unemployment rate among graduates in Malaysia, build up a positive state of
mind towards work. Simply value the way that work can be got from both the formal and
informal segments. Regardless of the size and area of the organization or status of the
supervisor and the value of the underlying bundle, the need presently is entering the universe
of work; you may begin close to nothing and bit by bit develop huge, take a gander at
manageability and clear particle of experience.
Fare your abilities abroad. On the wake of territorial incorporation and Globalization, you are
at freedom to send to another country your aptitudes to different nations. Appreciate the
believability of the Recruitment Agency and Terms of the current employment. You should
likewise examine on the political atmosphere of that nation and find out whether there is no
trick in the entire plan.

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Sign up for Soft Skills Development. It is imperative to procure delicate abilities required to
endure and prevail in the work market, for example, 'Kemahiran Insaniah' program. This
program and others will show you how to discuss well with individuals, work in gatherings,
and assemble self-assurance. Every one of these components are imperative in preparing you
for your new activity.
Have confidence in yourself and fight for the accessible chance. Try not to be threatened by
the conviction that there are a great many activity searchers going after that activity. The
businesses know about this as well, yet they are as yet searching generally advantageous;
who knows, you could be the best. Love those excellent characteristics inside you over your
capabilities.
6.0 Conclusion
Unemployment in Malaysia is winding up progressively genuine. Consistently numerous
understudies have moved on from institutions of higher learning either in public or private
institutions. A considerable measure of rivalry for employments in causing high joblessness.
Lack of business factors there is likewise a wellspring of joblessness.
As indicated by the reports that graduate unemployment is at its most elevated rate
throughout the previous seventeen years. The current pattern of procuring competitors’
dependent on their efficiency and similarity can defeat joblessness among graduates.
Successful aptitudes preparing will deliver graduates who are instructed and skilful before
entering the working field. Furthermore, it will likewise create graduates with a decent
working morals, proactive and ready to take care of issues identified with the work. An
graduates is chosen to satisfy a post in light of the fact that the business trusts that the
individual has a superior learning and working abilities when contrasted with different
competitors. There are three essential procedures to develop an incorporated human
workforce, which are,rebuilding the instructive framework with the end goal to build the
understudies' accomplishments, expanding the graduates' abilities with the end goal to build
the attractiveness of the graduates, and rebuilding the work showcase framework with the end
goal to create Malaysia as a high-wage country.

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7.0 Reference:
-Nasrudin Mohamed (2004). Graduate Unemployment; Perspectives & Brief Analysis.Journal of
Administrative Science. (Retrieved from 6 November)
-Noor Azina Ismail (2011). Graduate Characteristics and Unemployment: A Study among Malaysian
Graduate. International Journal of Business and Social Science, Vol. 2(16). . (Retrieved from 6 November)
-Nur Zakiah Hani Kamarolzaman and Masnora Sepikun ( 2011). The Effectiveness of Teaching among
Electrical Lecturer from Not Education . (Retrieved from 6 November)
-Background.Politeknik Port Dickson,Negeri Sembilan.
Palan, R. (2003).Competency management: A practitioner guide.SMR Sdn.Bhd.
Pang Chau Leong (2011).Technical Education and Vocational Training (TEVT) in Malaysia: Revisiting
the TEVT Framework. Malaysia Prince Hotel, Kuala Lumpur. . (Retrieved from 6 November)
-Rahmah et, al (2011). Employer Perceptions on Graduates in Malaysian Services Sector. Medwell
Journals, 5(3):184-193. . (Retrieved from 6 November)
-Ramlee Mustapha et, al (2008). K Ekonomy and Globalisation –Are ours Student Ready?. Jurnal
Personalia Pelajar.(11), 1-23. . (Retrieved from 6 November)
-Roselena Mansor (2007). Educational Quality in Professional Mara College: Student Perspective. Kolej
Profesional MARA Beranang.Selangor,Malaysia. . (Retrieved from 6 November)
Graduate Unemployment What Solution? http://wzwh.blogspot.com/2010/11/graduate-unemployment-
what-solution.html. (Retrieved from 6 November)
Unemployment among Malaysia Graduates: Graduates’Attributes, Lecturers’ Competency and Quality of

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Educationhttps://www.sciencedirect.com/science/article/pii/S1877042814012865 (Retrieved from 6
November)