Unemployment Rate Can Go Higher than 4.5%

Malaysia unemployment rate reaching worrying figure

Last year, the Second Finance Minister, Tan Sri Nor Mohamed predicted that the country’s unemployment would not go beyond 4% in year 2009.

Then the Malaysia Institute of Economic Research, MIER, came out with a more realistic assessment, indicating that the jobless rate can reach 4.5%.

And most recently, economist Datuk Dr Zainal Aznan Yusof predicted that Malaysia unemployment will continue to climb at an alarming rate and at one point will hit the 6.0% mark.

With the country’s working population now stands at 11 million people, 6% would mean that more than 600,000 people will be jobless. If comparison with the United Kingdom and United States were to go by, the 600,000 is a sensible estimate. For both UK and US, their governments expect more than 1 million people in their countries to become unemployed this year.

Electronic and manufacturing are the two most highly hit industries, with most layoffs coming from the two sectors. However, other companies from all other sectors have begun, and will face similar financial difficulties in the next coming few months. As a result, people who will be losing their job will come from all range of industries.

Datuk Dr Zainal expects the unemployment rate to recede to about 4% in year 2010.

More Money For Jobless Graduates

More and more money is being spent to address and heal the problem of jobless graduates in Malaysia. New re-skilling and retraining come up mushrooming, one after another.

In the latest move, the government will be spending up to RM70 million in order to retrain graduates who have been jobless for some time, particularly those exceeding one year period.

The retraining program, which will last between 1 to 2 years, intends to create values among the newly grad students and enhance their marketability.

The HR Ministry is urging graduates who face problems to enter the employment market to register with the ministry and tap into the retraining resources. The training modules will include some of the key skills demanded by the employer such as communication, interpersonal, language, creating thinking and English. During the program, trainees who receive job offers can leave and start a new life in the employment world.

English, in particular, becomes one of the main reasons graduates not being picked up to fill job vacancies as the companies, especially in the private sector, are pushing for global competitiveness. Communication and interpersonal skills come after. The problem is not only prevalent among the local graduates, but similar shortcomings have also been found in a number of overseas graduates.

Unemployment to Stay at 4%

Malaysia unemployment rate to stay at reasonable figure

Despite the inceasing economic pressure, Malaysia’s second finance minister Tan Sri Nor Mohamed Yakcob is adamant that the Malaysia unemployment rate would not go beyond 4%.

According to him, the rate will stay between 3% to 4% for both this year and next year even though some companies have begun their plan to reduce their workforce size, cut off expenditure and retrench their staff.

“We should be able to hold at that rate. It’s not going to be much higher than that. That is a manageable level. We will have to work hard to maintain it.”

Under the RM7 billion stimulus package unveiled by the Deputy Prime Minister recently, RM300 million training fund has been allocated to train workers and minimize the unemployment.

Amid the dismal financial situation, other developed nations are beginning to show the sign of exhaustion as recession starts to slide in. As of September, the United States recorded unemployment rate of 6.1%, Spain 11.9%, Japan 4.2%, France 7.9% and Ireland 6.6%. UK unemployment rate has risen sharply and this month, it reached a new level of 5.8%.

5 Reasons Graduates Must Not Be Choosy

1. Economy is not in your favour

In the recent time, the economy has not been in a healthy mood and this does not augur well not only for fresh graduates, but also for experienced people and executives. In different quarters of the world, companies are closing down, businesses are put up for sale, and workers are made being made redundant.

If seasoned professionals are facing problems, you can imagine the adversity that awaits a freshman. So, for a moment there, forget about that high paying job, and forget about working in a company next door to your house.

2. Bull’s eye strategy may not work for you

While you have set your eye on one or two major corporations, whatever strategy you deploy, it may not work. The reason could be one mentioned above, a silly underestimation or luck is simply not in your favour. When that happens, you are left high and dry. So remember, play safe. You can be smart, but more importantly, be realistic.

3. Fast expiry date

The longer you wait for your first job, the faster you are in approaching your ‘expiry date’. This ‘expiry date’ refers to a state where you are deemed completely useless in the working world. At this stage, no one wants you for sure as you seem to be worthless. As the time passes by, you will leave a gaping void which will not look good in your resume. This is the opposite of those who already have job in hand, where the longer they stay, their value multifolds and their expiry is lengthened.

4. Your first class degree does not promise anything, yet

The days have passed where academic results dictate the quality of a graduate. They no longer become a valid yardstick for graduate’s performance at workplace. In Britain, the excessive number of first class students produced in the recent years presented a growing concern to the observers (Read: Excessive First Class Students in UK). In Malaysia, finding a first class student today sounds as easy as finding an unscrupulous taxi driver (Malaysia Taxi Among the Worst). They are just everywhere. Just because you scored top marks in school, it is not the time to make ruckus, yet.

5. There’s opportunity in disguise

Sometimes, lifetime opportunity comes in many different disguises. It may even come in an ugly-looking, poorly compensated and labour-intensive routine job. But what you fail to see is the exposure, knowledge and the vast network that you will be tapping into. Similarly, look can be deceiving. For long you thought that those smartly and sharply dressed people are the most successful and the most highly paid people in the real world. With that in mind, you seek to find executive jobs in big cities before ending up with a harsh reality check.