top-rated free essay

Unemployment Rate - Article Review

By Farayana14 Jul 20, 2013 934 Words
NEWS STRAITS TIMES
Unemployment rate drops

2011/07/06

THE country's unemployment rate currently stands at 3.1 per cent compared with the 3.4 per cent last year, the Dewan Negara heard yesterday. Deputy Human Resources Minister Datuk Maznah Mazlan said the government was fully harnessing its workforce to keep the unemployment rate at four per cent and below.

This was because according to international standards, this was considered full employment.

"According to the Statistics Department, the percentage of unemployment last year was 3.4 per cent or 387,9000 people. Of the total, 65,500 were graduates.

"In the first quarter of this year, the unemployment percentage dropped to 3.1 per cent or 381,300. Of the number 71,600 were graduates," she said responding to Senator Khoo Soo Seang.

Maznah said the government had implemented measures to assist unemployed graduates.

These included offering a short service scheme with government departments, opportunities for apprenticeship and internship, and the 1Malaysia Training Scheme.

Under the short service scheme, graduates who have not secured jobs in six months after completing their studies have the opportunity to intern at participating government linked companies for a year and receive an allowance of RM1,000 a month.

Upon completion, the GLCs will assist in finding permanent positions for them.

"The programmes are to enhance the graduates' marketability and provide exposure so that they do not have to rely on the government for employment but can start their own businesses," she said. Article about

During 2011 the employment rate decreases from 3.4% to 3.1% due to the government effort to control all the recourse and to maintain the unemployment rate under 4%. Based on the international standard the unemployment rate of 4% and below considered as full employment. Although the number of people that unemployed are decreasing but the number of unemployed graduates are increasing. Due to this situation, the government had executed measures to help graduates to get a job. The government offer a short service scheme which give a job opportunity to them besides giving them skills and internship. The allowance are also provided under the short service scheme. This will help to give the graduates exposure and encourage them to do their own business instead of relying on the government for the job. Analysis

Based on the article, we can conclude that the type of unemployment that we can see is frictional unemployment. This type of the unemployment occurs when people are in between jobs, entering and reentering the labor force. This may happen when fresh graduates are actively seeking for a job. The numbers of unemployed graduates increase by 9.3% maybe due to the lack of soft skills and experience that most employers seek. The measure that the government took to control the unemployment is direct control measure, which is providing training and technical education and job creation in various sectors in an economy. The governments want to encourage the graduates to own a business because when there are more trade and transaction, the government revenue will increase. This will lead to economic growth and therefore can increase in GDP.

The effects of decreasing the unemployment rate
The first effect of decreasing unemployment rate is the incomes will increases. This will lead towards to more buying power and accelerating the inflation rate. Thus, this will effect to the distribution of income, the savings, production cost and balance of trade. The second effect of unemployment is new businesses will have a hard time succeeding, because everyone is already employed, who is going to work for them? New businesses will have to raise wages to entice people to work there which again raises wages and lowers profits to a point where it makes no sense to even start the business. Great levels of unemployment are around 3-5%.

The pros and cons of decreasing unemployment rate
The pro of decreasing unemployment rate is increase of income and self-respect. Secondly, increase the job skills. Thirdly, decrease social and political problems. Fourthly, the GNP gap becomes narrower because the GNP gap will almost towards to potential GNP. The contras of decreasing unemployment rate are inflation will occur and the new business will have hard time to survive.

The effect of decreasing rate of unemployment towards society The first effect is employment may bring a increase in social outings and interactions with other people, including friends. Secondly, employment the competition for jobs and the negotiation power of the individual increases and thus also the living standard of people with the salaries packages and income higher. Thirdly, employment also brings up calm and steadiness amongst the tax paying citizens. For the fresh graduate employees, they will not face burden to settle their loans.

Recommendation or solution
The first solution is, government can use progressive tax rate depends on the number of employees and use the current Malaysia Corporate Tax. If we use this method, the company in Malaysia will hire more employees in order to decrease the corporate tax and lead to the zero unemployment rates. The second solution is government can open up Malaysian mind to new kind of industry that can make the Earth as better place in the future. For example, this legislation would create an estimated 3 million new jobs by opening closed areas of the Outer Continental Shelf which is between Malaysia and Brunei for oil and gas exploration, and streamlining the licensing of nuclear power plants. This also would create royalty revenues for the government that the bill directs to a new trust fund that can promote renewable energy.

Cite This Document

Related Documents

  • The Unemployment Rate

    ...The unemployment rate An unemployed person is one who is able and willing to work yet is unable to find a job. The unemployment rate is the number of unemployed workers divided by the total civilian labor force, which includes both the unemployed and those with jobs. Measuring the number of unemployed workers actually seeking work is ve...

    Read More
  • Unemployment Rate

    ...nation’s high unemployment rate is a result of a severe drop in demand for goods and services. It’s not a reflection of longer-term structural changes in the economy but rather cyclical changes in the economy. The demand for goods has been limited because of tight credit, decreases in government budgets, suppression of demand by consumers an...

    Read More
  • Unemployment Rate

    ...Publishing, Inc. 2012 http://www.bjournal.co.uk/BJASS.aspx Graduate Unemployment in Nigeria: Causes, Effects and Remedies. Dr. Oluseyi A. Shadare Department of industrial Relations and Personnel management, University of Lagos, Akoka, Yaba, Lagos, Nigeria seyidare2001@yahoo.co.uk Elegbede Sikirulahi Tunde Department of industrial Relations and...

    Read More
  • Unemployment Rate

    ...SOYSAL&SEDA SÖNMEZIŞIK&İBRAHİM ETEM GİRGİN 2001461168 2001461170 2001461092 UNEMPLOYMENT AND TURKISH CASE SOME KEY TERMS TYPES OF UNEMPLOYMENT UNEMPLOYMENT AND TURKEY SOME KEY TERMS • Unemployment: can be defined as the number of people (of working age) who are willing and ava...

    Read More
  • Unemployment Rate

    ...INTRODUCTION Today, mostly Filipino people are experiencing unemployment crises because of lack of job opening in our society. Even those who are fresh graduates in college are hard to get job, mostly those graduated in college are jobless and they are vacant only in their house. This is the reason why Philippines tackles unemployment ra...

    Read More
  • The Rate of Unemployment in Malaysia

    ...easy task and it is a challenge to Malaysia.Currently, unemployment among the graduates becomes an issue, not only in Malaysia but also around theworld. The Department of Statistics Malaysia (2011) found that the unemployment rate in Malaysia hadincreased from 3.2 % in 2007 to 3.7% in 2009. The Minister of Human Resources, Fong Chan Onn, stated ...

    Read More
  • ARTICLE ABOUT UNEMPLOYMENT RATES IN MALAYSIA

    ...ARTICLE ABOUT UNEMPLOYMENT RATES IN MALAYSIA KUALA LUMPUR, May 26- The unemployment rate in the country for March 2014 was at 3.0 per cent, comparatively lower from 3.3 per cent in March last year , the Statistics Department said. When compared with the previous month, the rate was down 0.2 percentage point from 3.2per cent in February 20...

    Read More
  • Unemployment

    ...Unemployment Introduction It stands for jobless or unemployed. Unemployment consists of the labor force (working age) who have no work. Do not confuse the workforce with the inactive population. There are three types of unemployment in peripheral economies are usually four (seasonal unemployment). These types of unemployment are cyclical, st...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.