MALAYSIA now has more employed graduates in underemployment while unemployment among graduates rose by 22.5% in 2020.
Graduates in the Graduates Statistics 2020 report by the Department of Statistics Malaysia (DOSM) are defined as individuals with the highest certificate obtained from universities, colleges, polytechnics, recognised bodies or equivalent with the study duration of at least two years.
“Unfavourable economic environment in 2020 and its consequences to the overall labour market situation had caused the number of unemployed graduates to increase 22.5% (+37,200 persons) to 202,400 persons (2019: 165,200),” commented chief statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin.
“The rise was observed for both degree (+22,400 persons) and diploma holders (+14,800 persons), largely among graduates aged 35 years and over.”
In addition, more than 75% of unemployed graduates were actively seeking work whereby almost half were unemployed for less than three months.
There were 5.36 million graduates recorded in 2020. The increase in the number of graduates over the years is concomitant with the awareness of the importance of higher education to improve livelihood.
Commenting on the salaries and wages received by graduates in 2020, Uzir said 2020 marked the first-time decline in salaries and wages in 2020 since the Salaries & Wages Survey Report series began in 2010.
“The graduates’ mean monthly salaries & wages in their full-time equivalent principal occupations decreased 10.6% as against 2019 to RM4,489 (2019: RM5,020),” he pointed out.
‘Degree holders earned mean salaries & wages of RM5,471/month in 2020, lower by 9.1% compared to 2019 while diploma holders received a mean of RM3,311, a decrease of 11.5% during the same period.”
Ironically, it was observed that skilled category recorded the highest decline of 8% to RM5,316 while those in semi-skilled category received RM2,418, lower by 2.7% as against the previous year.”
In conclusion, Uzir said the challenging labour market condition as a consequence of the pandemic has resulted in fewer job openings and increased competition.
“For those interested to be hired, they can increase their opportunity to be employed by updating and upgrading knowledge and skills to ensure they remain agile and adjust accordingly to the dynamic labour market,” he suggested.
“In this regards, skills training and entrepreneurship programmes offered by various government agencies may be one of the alternatives to ensure enhanced prospects of employability and income creations for graduates.” – July 27, 2021
Photo credit: Getty Images
