Sunday, September 9, 2007

Unemployment in Malaysia


To discuss about unemployment condition in Malaysia


To measure the unemployment rate in Malaysia from 2004 until 2007
The ways to improve unemployment rate in Malaysia.
To discuss about unemployment among graduates in Malaysia.

Cause and implication from laziness of Malaysian graduates especially Malays.
Objective : to increase alertness among Malaysian graduates on limited jobs offered Malaysia and to be self independent.
Increase Malaysian’s wealth and standard of living in future.
Objective : to increase awareness among Malaysian graduates not to be too choosy in choosing jobs.

Unemployment is the condition of willing workers lacking jobs or "gainful employment". In economics, unemployment statistics measure the condition and extent of joblessness within an economy. A key measure is the unemployment rate, which is the number of unemployed workers divided by the total civilian labor force. The unemployment rate is also used in economic studies and economic indexes such as the Conference Board’s Index of Leading Indicators. Unemployment in an economic sense has proved a surprisingly difficult thing to define, let alone "cure".
The terms unemployment and unemployed may sometimes be used to refer to inputs to production that are not being fully used (apart from labor) — for example, unemployed capital goods. In its most general, but uncommon usage, unemployment might also denote objects not put to productive use.

When moving from one job to another, the unemployment temporarily experienced when looking for a new job.
Caused by a mismatch between the location of jobs and the location of job-seekers. "Location" may be geographical, or in terms of skills. The mismatch comes because unemployed are unwilling or unable to change geography or skills.
Cyclical (Demand deficient unemployment) unemployment
When there is not enough aggregate demand for the labor. Caused by a business cycle recession.
Caused by the replacement of workers by machines or other advanced technology.
When an occupation is not in demand at certain seasons. For example, construction workers in winter, ski instructors in summer.

Unemployment rate: 3.5% (2006 est.)
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Unemployment rate
Percent Change
Date of Information
3.80 %

2002 est.
3.60 %
-5.26 %
2003 est.
3.00 %
-16.67 %
2004 est.
3.60 %
20.00 %
2005 est.
3.50 %
-2.78 %
2006 est.

Definition: This entry contains the percent of the labor force that is without jobs.

Unemployment may have advantages as well as disadvantages for the overall economy. Notably, it may help avert runaway inflation, which negatively affects almost everyone in the affected economy and has serious long-term economic costs. However the historic assumption that full local employment must lead directly to local inflation has been attenuated, as recently expanded international trade has shown itself able to continue to supply low-priced goods even as local employment rates rise closer to full employment.
The inflation-fighting benefits to the entire economy arising from a presumed optimum level of unemployment has been studied extensively. Before current levels of world trade were developed, unemployment was demonstrated to reduce inflation, following the Phillips curve, or to decelerate inflation, following the NAIRU/natural rate of unemployment theory.
Beyond the benefits of controlled inflation, frictional unemployment provides employers a larger applicant pool from which to select employees better suited to the available jobs. The unemployment needed for this purpose may be very small, however, since it is relatively easy to seek a new job without losing one's current one. And when more jobs are available for fewer workers (lower unemployment), it may allow workers to find the jobs that better fit their tastes, talents, and needs.

Optimal unemployment has also been defended as an environmental tool to brake the constantly accelerated growth of the GDP to maintain levels sustainable in the context of resource constraints and environmental impacts. However the tool of denying jobs to willing workers seems a blunt instrument for conserving resources and the environment -- it reduces the consumption of the unemployed across the board, and only in the short-term. Full employment of the unemployed workforce, all focused toward the goal of developing more environmentally efficient methods for production and consumption might provide a more significant and lasting cumulative environmental benefit and reduced resource consumption. If so, the future economy and workforce would benefit from the resultant structural increases in the sustainable level of GDP growth.

Firstly it is important to note that the organization dynamics have changed, expectations
of employers and potential employee are also very different as compared to a decade ago.
In short the world has changed! To increase the complexity, you will also find that there
are so many courses in the market place that one wonder how can one cope with such a
’maze’ let alone decide on the one that will suit you and most important of all, one that
can lead you to a fulfilling career later in life.
E) The reason why Graduates have problem
finding his/her first job:
1. Ability to communicate well and include oral and written communication. This
explains why most applicants are not even granted an interview.
2. Expectations of new graduates are ‘high’ and tend to seek jobs that can quickly
put them in the main stream of work –very selective on the type of organizations
– often targeting multi-nationals only?
3. The courses or/and subjects that the graduates studied are not relevant and not
applicable to the industry.
4. ‘Over qualified graduates – graduates are embarking on post graduate courses
with minimal work experience and in some cases none at all.
5. Not prepared to re-locate to smaller towns – everyone is heading for the City.
6. Graduates cannot market themselves well
7. Perception of attitude issues of fresh graduates – ‘silver spoon’

The Malaysian Government, through various tripartite forums, have constantly highlighted and promoted the importance of continual improvement and learning. Workers must be actively involved in upgrading their knowledge and skills.
Unemployment is a problem that we have to control through effective labour management and human resource policies. The negative impact of globalisation and external shocks of the international economic system must be mitigated by prudent government interventions. Consequently, underpinning the efforts to combat unemployment is the capacity of the workforce to compete through increasing productivity and working in harmony with the other factors of production. The strategic thrust in addressing unemployment is economic growth and development

v Review the academic curriculum of universities to ensure practicality and applicability to the industry
v Introduce certification courses in the universities especially the technical certification
v Introduce more soft skills into the university curriculum e.g. personality enhancement course
v MDC to extend internship to more graduates – why not incorporate this into university curriculum.
v Include industry work experience as part of university curriculum
v Continuous dialogue between academicians and industries to ensure relevance of contents taught
Benchmark for students pursuing tertiary studies may need to be reviewed as not all
people may wish to continue their studies in universities. Instead some form of
vocational studies should be introduced for these people.


a) By Woon Tai Hai, KPMG Advisory Sdn Bhd
b) CIA World Factbook - Unless otherwise noted, information in this page is accurate as of April 17, 2007
c) ^ Virginia Tech, Department of Economics, Professor Richard Ashley's website, Fact sheet on the impact of unemployment, retrieved May 25, 2007