MalayMail-March 4
Too many graduates in Malaysia have become overqualified for the current job market, forcing them to opt for low- or semi-skilled jobs with subpar starting pay due to a lack of jobs that match their qualifications. A total of 48.6 per cent of Malaysian graduates were overqualified for their current jobs in 2021, Khazanah Research Institute (KRI) revealed today in their report Shifting Tides: Charting Career Progression of Malaysia’s Skilled Talents.“Since starting one’s career on the wrong foot could have enduring effects on future career trajectory, ‘last-mile’ active labor market initiatives are important to facilitate the education-to-work transition. “This could ultimately overcome the underutilization of skilled talents in driving the nation’s development and maximize the return to higher education”, said the report’s lead author Hawati Abdul Hamid, in an accompanying press release.The report revealed that only 43.4 per cent of graduates were employed for jobs where their skills met their qualifications. “Fresh graduates are increasingly overqualified and often face a wage penalty, implying that many resort to accepting low or semi-skilled jobs with low starting pay to avoid unemployment,” the report said. Notably, in the last three decades, student enrolment in tertiary education multiplied nearly 26 times from 46,596 in 1980 to 1.2 million in 2020. However, the supply does not seem to meet the demand. In 2022, there were only 24.9 per cent of high-skilled jobs, including full-time and part-time filled jobs and vacancies. Overqualification was also an issue within those employed in high-skilled jobs with roughly half of experienced hires being overqualified in their current positions. However, overqualification and a mismatch of skills are not the only issues plaguing career progression and the underwhelming job market. The report revealed that wage growth has been idle for the past decade. Read more at:
