Bank Negara Annual Report - Youth Unemployment on the Rise, 23% of Jobless are Graduates

You have a feeling that things are bad, but just HOW bad is it? Well, we've got the numbers and facts for you!

Recently, Bank Negara Malaysia released it's Annual Report, and it had a section specifically on youth unemployment. When you need an entire section, then yes it's probably a big deal!

The big deal is: more than half of total unemployed workers are youths! Of that, 23% are young graduates with tertiary education! Whatever happened to 'study hard, go to uni, surely you'll get a job' WAS IT ALL LIES?!

Actually, the Malaysian economy itself didn't do badly: 4.2% growth last year. BUT, unemployment is still an issue: while numbers on the whole have not risen a lot (increasing 2.9% to 3.9%), it's how youths are affected that's a huge concern. Here's some perspective on this:

There are 70,000,000 jobless youth globally

You read that right. That's seven zeroes!

Global youth unemployment is estimated to remain high at 13.1%, a whopping 3x more than the unemployment rate of adults... and TWICE the overall gobal unemployment rate. Unsurprisingly, the report states that: "early youth unemployment has serious long-term negative effects on future incomes and future risk of unemployment, particularly for youth who were immediately afflicted by unemployment upon graduation from universities."

We like the use of 'afflicted' because joblessness is a DEBILITATING ILLNESS, alright. Look at these numbers:

Charts, charts, we have many charts!

Youth Unemployment in Msia 3x Higher than National Unemployment Rate

Youths make up 1/3 of the labour force, by the way. So how did half the unemployed consist of young people? You can blame: "cautious business sentiments and moderating economic performance have restrained businesses from expanding their workforce." This means companies are being cautious and so, limited their hiring. 

All this means youth are the last to be hired and the first to be fired, due to lack of experience, information inconsistency in the labour market (such as between what's actually required and what youths think is required), and being very bad at communication skills!

23% of Unemployed Youths are Young Graduates 

'Of concern, among those with tertiary educational attainment, the unemployment rate is higher at 15.3% (Youth without tertiary education: 9.8%)' Sounds contradictory, right? You'd think graduates have higher chances of getting a job, right? NOPE.

'Despite the workforce increasingly becoming more educated, job creation in the Malaysian economy has remained concentrated in the low and mid-skilled jobs'. Interestingly, this trend is not uncommon in the region, but it's the OPPOSITE of what happens in advanced economies. Why? Because Malaysian employers prioritise cost-saving and cheap labour, instead of innovation and investing in talent.

More than 50% Earn Less than RM2,000 Upon Graduation

While some news tells of Malaysian graduates asking for RM3,500 starting salaries, the reality is much harsher. Starting salaries of first degree graduates have remained stagnant, with online job postings (based on Jobstreet) for entry-level positions for graduates 'have remained largely stagnant since 2012. Employers continue to cite significant skill gaps among new recruits.'

Highest Unemployment in the Sciences Field, Bachelors degree

By qualification, it looks like it's more valuable to pursue further education to a Master's, than to settle with a degree and compete with the lower asking salaries of diploma holders.

So What's The Problem?

Hiring has been slow since late 2014, and it is particularly affecting youth and new jobseekers. Although companies claim that jobseekers lack industrial training and communication skills, and that university curricula do not reflect the industry, the industry itself has had only limited collaboration in education and training to address such problems.

Introducing a Solution

AJobThing is playing its part with the Ekspo Maukerja, where jobseekers - primarily youth and graduates - are connected with thousands of urgent job opportunities with reputable companies. Last year's edition saw a 30% successful hiring rate, an industry high! Check it out below:

Source: Bank Negara Malaysia Annual Report 2016