High Rate of Unemployment Among Graduates in Malaysia

Topics: Unemployment, Malaysia, Employment Pages: 11 (2757 words) Published: June 19, 2010
International Campus KUALA LUMPUR|

Draft 1 (One)

Title: High rate of unemployment among graduates in Malaysia; causes, problem and solution

Submitted to: Mr. Shamshul Helmy Zambahari (Mr.Sham)
English Lecturer
UTMSPACE, KL International Campus
UTM, Jalan Semarak
54100 Kuala Lumpur

Prepared by:: 1. Wan Zaizul Adlan B. Wan Zulkifli (SX070956EEJ04)
2. Mohd Nazim B. Zakaria (SX080641EEJ04)
3. Fuad Jaafar B. Nawawi (SX080587EEJ04)
4. Mohd Fairus Alkaf Bin Idris (SX0805


Over the past years, there has been a growing concern in the issue of high unemployment rates among our local graduates. Some made it to the headlines, newspapers and even in the blogs. This shows how serious this issue is and we are interested in finding out why this happened and to identify what are the causes and if possible achieve a solution to this problem. Every year our local universities, public or private higher institutions produced a large numbers of graduates but the percentages of the graduates acquire a job at the end of the day is surprisingly low. This matter is a grave concern as this will decrease the image of our educational system in Malaysia. Companies or employees might someday totally lost interest in our graduates due to the statistics of high unemployment rates if the root causes of the problem have not been identified. The statistics provided by ‘The Sun’ newspaper in 2006 reported that the unemployment rate of public universities has reached a shocking 70%, whereas the private institutions recorded 26% and meanwhile 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%)

There a lot of factors on why our graduates being unemployed even long after their graduation. Reason such as graduates are too choosy in picking on lower income jobs and some of the graduates wants to start immediately in a big and well known or establish company which provides higher salary are the few reasons why our graduates still unemployed. On the employee and company point of view, they are too strict in selecting their worker and choose not to take fresh graduates and they tend to be looking more to experience or skilled worker such as worker from other companies. Job opportunities nowadays are very slim and the economics of our country are also unstable. This proves to be a very competitive job seeking for graduates. Private university or colleges nowadays grows beyond needs and produced too many graduates but the qualities of the graduates are doubtful and some of these private institutions are not recognized by our Malaysian Qualifications Agency (MQA). The increasing graduates from unwanted field such as IT are too many to fill up in the vacant post, as this post is not entirely available nowadays. The increasing rate of hiring foreign worker in the company also might explain why our graduates are still unemployed and lack of guidance for fresh graduates to adapt to the real working environment.


In this research, we want to identify the increasing rate of unemployment among our graduates and what is the percentage of unemployment rates nowadays. Besides that, we are also keen to identify what are the causes and effects of unemployment rate among our graduates. By conducting this research, we are also hoping to identify the Malaysian current economy standings and if there are any social problem among Malaysian related to the unemployment problem.

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