In the post-recovery period, the pandemic is expected to inflate the size of graduate mismatch in the Malaysian labour market if necessary interventions are neglected.
According to this taxonomy, the first three occupational categories are jobs for graduates while the other six occupational categories are classified as non-graduate jobs.The study revealed that 63,911 graduates or 47% of the total samples are in non-graduate occupations. The total graduate mismatch is mainly dominated by the Bachelor degree and diploma holders with 43% and 55% of the total graduate mismatch, respectively.The incidence of graduate mismatch in Malaysia is considerably large.
This situation indicates that it is harder for graduates to secure suitable jobs based on their qualifications as compared to seeking employment itself. First, a huge amount of human capital expenditure has been allocated for the educational sector. The share of education expenditure to gross domestic product is 4.7%, which is almost close to the average OECD level at 5.2% in 2019.
According to the Tracer Study for 2019 conducted by Higher Education Ministry, there were 307,818 fresh graduates ready to enter the labour market but about 80,775 remained unemployed after six months of graduation. This indicates that one out of five graduates remains unemployed. Next, let us examine a comparative analysis between the supply and demand of graduates in the recent periods by analysing data from the Tracer Study and MyFutureJobs.Figure 4 details the distribution of graduates by programmes in 2019, obtained from the Tracer Study.
In 2019, Socso’s employee database covers 11.2 million or 74% of the total employment in the economy. Analysis in Figure 4 shows that only 43,645 or 23.3% jobs are available for graduates, while 76.7% or 143,284 are for non-graduates. The top-five occupations highly demanded by employers are administrative assistant, accounting assistant, bookkeeper, quantity surveyor and insurance broker.
Nevertheless, the publicly available database could clearly show the incidence of mismatch for graduates in these two categories. Low return of human capital investment: Investment in human capital through education is one of the instruments that contribute to a lifelong difference in people’s lives and thus promote economic betterment.
There is a considerable scope to improve the efficiency of human capital allocation in Malaysia which certainly will further improve the productivity growth.For example, a study conducted for OECD countries shows that the cost of mismatch is 3% of output growth. This means that that eliminating mismatch would raise output by 3%.
Evidences show that the high cost of living in Malaysia is due to relatively lower wage growth than the price increases. The costs of mismatch can be large and long-lasting for workers, firms and the economy as a whole, with long periods of over-education implying a loss of human capital for graduates and ineffective use of resources for our economy.
Hence, it requires a paradigm shift in policy formulation and implementation, which is evidence-based. 3. Industry role in the supply-side education: Greater industry role in curriculum designs must be accelerated to a different level.
Can we also talk about Degree Mismatch. Example -should not have even graduated but got a degree. Do not even know how to apply V = I R by a 'electrical' engineer graduate. And please don't ask 'Why is my salary so low'.
Lol this is sad. We work our ass of for a degree but offered jobs that can be executed spm level not to be mention the salary tho. Ironically in job qualifications they want a degree holder like?
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