7 Reasons Why Malaysian Fresh Graduates are Unemployed

 

The Ministry of Higher Education (MOHE) estimated that the total unemployment among fresh graduates in Malaysia amounted to 116,161 people or 20% of the total graduating population in 2020. In other words, 1 in 5 fresh graduates struggles with unemployment today, even after investing a high amount of money and time into obtaining a bachelor’s degree.

 

According to DOSM, Malaysia faces a severe graduate underemployment crisis despite maintaining a low headline unemployment rate of around 2.9% to 3.0%.

 

Source: https://en.namu.wiki

 

·         Unemployment Rate: Overall national unemployment sits at roughly 2.9%–3.0%, masking the severity of youth and graduate job quality.

·             Skill-Related Underemployment: According to the Department of Statistics Malaysia (DOSM) data, nearly 1.96 million tertiary-educated Malaysians (about 35.5% of degree and diploma holders) are stuck in semi-skilled or low-skilled jobs.

·        The Wage Penalty: Underemployed tertiary graduates in Malaysia face a wage penalty of up to 49.3% compared to those in genuinely high-skilled roles.

 

Should we just blame it on the Covid-19 pandemic? Or are there fundamental issues that lower Malaysian fresh graduates’ employability? 

 

1.      Poor Command of English

 

English is still the primary business language in Malaysia. Being proficient in English is no longer an advantage, but a necessity to communicate effectively. However, many Malaysian fresh graduates struggle to communicate in English fluently.

 

Since job interviews are mostly conducted in English, many graduates fail in the first stage of a job application as poor command of English affects their self-confidence during the interview sessions.

 

2.      Lack Of Technical and Soft Skills

 

Today, fresh graduates are expected to be fully equipped with the right skills and knowledge to instantly bring value to companies, as companies are not keen to train employees from scratch. According to employers and industry players, most Malaysian fresh graduates lack the technical, problem solving and soft skills that employers require to compete for jobs in Malaysia.

 

As a result, the job market is highly competitive as only a handful of talents possess the right skill sets to get hired.

 

3.      Picky About the Job Or Company

 

Compared to the previous generations, most fresh graduates today would not settle for a job for the sake of it. Today, candidates are not only looking for a higher salary but the entire compensation package as well, such as allowances and non-monetary benefits.

 

Besides that, Malaysian fresh graduates place much emphasis on company culture, work-life balance and more. However, not all companies offer these benefits and only the best and rarest talents are hired instead while others stay unemployed.

 

4.      Unrealistic Salary and Benefits Expectations

 

Malaysian fresh graduates are well-known for having an entitled attitude whilst job hunting. This is reflected by the fact that fresh graduates are expecting much higher starting salaries and benefits compared to the industry standards.

 

Employers are often shocked by fresh graduates’ unrealistic expectations, considering that they have lower knowledge and expertise.

 

For those that are not willing to settle for lower salaries, it pushes employers to hire other graduates who are willing to accept the market rate and have a good intention of learning.

 

5.      Lack Of Digital Skills

 

The world is experiencing the age of digitalisation and automation. As such, digital skills such as digital marketing, big data analytics and e-commerce are some of the most highly sought-after skills in the job market.

While digitalisation created new jobs in Malaysia, most Malaysian fresh graduates lacked the right digital skills to fill those jobs. This has also contributed to the decrease in fresh graduates’ starting salaries in the competitive job market.

 

6.      Poor Attitudes at Work

 

Malaysian fresh graduates are often said to ‘bruise easily’ as they are unable to withstand work and societal stress as they are overprotected by their parents.

 

Fresh graduates are also described as lazy but demanding, passive, full of excuses and they quit easily. These impressions certainly decrease their employability, affecting the job market as a whole. While it may not apply to the entire population, we certainly agree that it is a growing problem in Malaysia.

 

7.      Delay In the Job Hunt

 

A growing number of Malaysian fresh graduates are delaying their job hunt as they would prefer to take a long break after their graduation. While it is understandable to recharge after long years of studying, the long delay could be detrimental as it affects the employability of fresh graduates.

 

It is time for Malaysian fresh graduates to step up their game. As the environment only gets more competitive over time, it is important for fresh graduates to upgrade themselves to boost their employability, or “market value”. Expanding technical skill sets that are in demand and attending online courses to improve interpersonal skills – these efforts are crucial to elevating the value that they can bring to any organisation, increasing their competitive advantage over other graduates. Malaysian fresh graduates should also focus more on researching current career trends. Knowing the industry-standard salary and expectations would help reduce the gap between what fresh graduates want versus what employers are ready to offer.

 

Finally, Malaysian fresh graduates should put more thought into the job application process. Attach a personalised cover letter and/ or a visume to stand out among thousands of applicants. These tips are important for Malaysian fresh graduates to land a decent job in a highly competitive market.

 

Reference:

7 Simple Reasons Why Malaysian Fresh Graduates Are Unemployed, Talent Recruit