In a country that values education as a gateway to success, the latest findings from the World Bank might leave many scratching their heads. According to the Malaysia Economic Monitor report, a staggering 26.9% of graduates in 2022 found themselves working in jobs that don’t match their qualifications. For many of us, it sparks a simple yet powerful question: Why are so many graduates, who have spent years earning their degrees, underutilizing their skills?
Let’s break down the situation.
A Growing Problem for Degree Holders
The latest findings from the World Bank highlight a growing crisis for graduates in Malaysia. To put it plainly, the job market is tough. The report highlighted a troubling rise in job mismatches, with the percentage of graduates in this predicament increasing sharply from 8.6% in 2010 to 26.9% in 2022. While degree holders make up 48.6% of the highly educated workforce, finding jobs that match their skills has become increasingly difficult.
The issue isn’t just limited to those with degrees. Diploma holders and even STPM graduates are feeling the squeeze. The main culprit? A lack of highly skilled job opportunities. Between 2018 and 2023, less than 50,000 high-skilled jobs were available annually, while as many as 350,000 graduates entered the job market each year. That’s a massive gap.
Regional Disparities in Job Mismatches
Interestingly, the World Bank report also highlights significant regional disparities when it comes to job mismatches. In states like Kelantan, the situation is particularly dire. Over 50% of skilled workers in Kelantan are in jobs that don’t match their qualifications, which is significantly higher than the national average of 36.9%. Other states like Terengganu, Perlis, Pahang, and Johor are also struggling with high rates of job mismatch, which indicates a lack of high-skilled opportunities in these regions.
On the flip side, states like Kuala Lumpur, Penang, and Selangor fare much better. These areas boast lower rates of job mismatch, suggesting that they have more robust economies that can support high-skilled job creation. The report points to these regions as models for other states, noting that better alignment between education and industry needs, as well as stronger local economies, could help reduce the job mismatch problem.
Why Is This Happening?
The root of the problem, according to the World Bank, is the limited number of high-skilled job opportunities available in Malaysia. Between 2018 and 2023, fewer than 50,000 high-skilled jobs were created annually. Meanwhile, each year saw an influx of between 200,000 and 350,000 new graduates entering the job market. That’s a massive discrepancy, and it’s left many young people scrambling for any job they can find—whether or not it aligns with their qualifications.
The World Bank also points out that this lack of high-skilled jobs is having long-term effects on the workforce. When graduates are forced to take on lower-skilled jobs, they miss out on the chance to apply the skills they’ve spent years developing. Over time, this can lead to a loss of potential and reduced productivity, both on an individual and national scale.
What’s the Fix?
While the situation seems bleak, there are steps that can be taken to address this growing problem. The World Bank suggests several strategies to improve the situation:
- Aligning education with industry needs: By updating curriculums and ensuring students are learning skills that are in demand, graduates will be better prepared to step into high-skilled roles.
- Attracting quality investments: More investment in industries that create high-skilled jobs could help close the gap between the number of graduates and the number of available positions.
- Lifelong learning and skills training: As the job market evolves, it’s essential for workers to keep upgrading their skills to stay relevant. Providing ongoing training opportunities could help workers navigate the changing landscape.
Malaysia’s Place in the Region
It’s worth noting that, despite these challenges, Malaysia still has a higher rate of high-skilled workers (29.6%) compared to neighboring countries like Thailand and Indonesia. However, the country lags behind Singapore, where a whopping 60% of jobs are classified as high-skilled.
The Road Ahead
While the numbers may seem disheartening, they also offer a clear call to action. By addressing the mismatch between education and industry needs, encouraging investment in high-skilled sectors, and promoting continuous learning, Malaysia has the potential to turn the tide. The goal? Ensuring that every graduate can find a job that not only pays the bills but also makes the most of their skills. The conversation around education and employment is evolving, and it’s time we start talking about how to better align the two—so that the dream of finding the right job after graduation becomes a reality for all Malaysians.
Source: here
Also read: The Surprising First Jobs of 4 Malaysian Millionaires
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