Unemployment and Job Seekers

Only available on StudyMode
  • Download(s) : 62
  • Published : March 17, 2013
Open Document
Text Preview
5 Reasons Why Graduates are Unemployed
-------------------------------------------------
April 17th, 2008 | Featured Articles, by Zul

http://skorcareer.com.my/blog/malaysia-unemployment-issue-why-fresh-graduates-are-unemployed/2008/04/17/ The increasing unemployment rate among the graduates in Malaysia is a worrying trend. For many years, the issue cropped up again and again, made the news headlines, and even hit the parliament. The days have passed when a degree scroll can become your automatic passport to employment. Higher education is no longer a symbol of career success. This may sound painful for graduates but let’s face it. It is reality, no matter how harsh it may appear. [You may also want to read The Unemployment Issue Among the Malay Job Seekers] In July 2006, The Sun newspaper reported that the unemployment rate of public universities has reached a staggering 70%, whereas the private institutions recorded 26% and foreign graduates 34%. Out of the 70%, the highest unemployment was contributed by the following statistics: 1. Universiti Teknologi MARA, UiTM – 3,278 (16.2%)

2. Universiti Utara Malaysia, UUM – 1,532 (7.6%)
3. Universiti Teknologi Malaysia, UTM – 1,147 (5.7%)
4. Universiti Kebangsaan Malaysia, UKM – 971 (4.8%)
5. Universiti Putra Malaysia, UPM – 919 (4.5%)
The situation was somewhat different before the 1997 crisis when Malaysia was having a vibrant employment and graduates were in high demand. But those were the good old days and things are no longer the same today. Is the job market getting more competitive, or it is the job seekers and graduates are actually unmarketable these days? Can we blame it entirely on education? Perhaps we can take a look at some contributing factors:

1. Economy
The changing of the economic structure and landscape is a probable cause for the rise in the unemployment. For many years, the manufacturing has been the strongest sector in the country until it is now being progressively replaced by the services sector. The services sector requires people who do not only possess the right technical knowledge, but also those who possess the right soft skills – interpersonal, communication, wisdom, maturity and are business oriented. Now, getting graduates with that kind of quality is a tough endeavor these days. It is even hard to find graduates who can speak moderate English. Additionally, unlike the manufacturing sector, a company providing services would not require a large number of staff to be employed.Statistics show that between 2006 and 2007, the country’s manufacturing employment grew by 3%, from 3.244 million workers, to 3.347 million. The business services sector employment, on the other hand grew by 2.6%, from 0.771 million, to 0.791 million. Now, where GDP (Gross Domestic Product) growth is concerned, the manufacturing growth recorded 3.1% whereas services tops the chart with a thumping 9% growth. In English, this means that while the employment growth of services sector is lower compared to manufacturing, it is actually contributing to much higher economic achievement. Get the picture? 2. Quality of education

It seems that every year the country produces more and more brilliant students. This is evident with the increasing number of straight A students in SPM. It is also easier to find degree holders with first class honors. Surely, this is a good yardstick of the graduate’s quality. Is it? Not so, it seems. My own experience with graduates – not once, but many times – has convinced me that today’s academic achievement has little to do with how well you can excel in the working world. I used to be short listing 4-5 first class graduates for an interview and in the end rejected them all, and hired a second class student instead. It seems that the country is blessed with institutions highly capable to produce low quality, academic achievers. This statement may not bode well with some of the institutions out there but this should be taken as a...
tracking img