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Essay: Reasons for graduate unemployment

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  • Published: 21 December 2019*
  • Last Modified: 2 September 2024
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INTRODUCTION

According to Investopedia, unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. In other mean, they want to work but no one accepted them as a worker. There are two categories of unemployment which is voluntary and involuntary unemployment. Voluntary unemployment can be refer to as a person that has left their job willingly. It can be due to search of other better job. On the other hand, involuntary unemployment refer to a person that has been fired or laid off and now must look for another job. It is not like they want to be unemployed, but they are being fired unwillingly and because of that it named involuntary unemployment. There are five type of unemployment in Malaysia. First, cyclical unemployment. It occur due to the business cycle itself. Business cycle defined by Investopedia as the fluctuation in an economic activity that an economy experiences over a period of time. It happen during recession periods and declining during economic growth. Second, structural unemployment. It happen through technological updated. People are unemployed because they unable to operate using those advance technology. Or it can also due to the technology itself replace worker in doing their job. Third, frictional unemployment. It also known as search unemployment, occurs when workers lose their current job and are in the process of finding another one. It is short term unemployment because once they find new job, they will no longer be unemployed. Fourth, seasonal unemployment. It exists due to certain industries only produce or distribute their products at certain times of the year. As example, farming industries will only collect their product during fruit season.
Malaysia unemployment trend is increasing from year to year. It is increase by 0.4% compare to October last year. It may be due to bad economy that we facing now.  More importantly, those who are unemployed also included a graduate which represent 6/10 or 60% from total unemployed person. They are unemployed even after six month they graduated from tertiary education. It is a serious issue because even though they are job seeker with academic qualification, no company want to employ them. In addition, the highest graduate who is unemployed come from Public University which represent 51%. The second highest unemployed is graduate from Private University which represent 34%. Meanwhile the rest is graduate from polytechnic and community college which represent 13% and 2% respectively. Now we can clearly see that Public University graduate is the highest one who unemployed. Here are some statistic at last page of the introduction.
This issue is not a good condition that we should ignore because it will lead to negative effect to the image of tertiary education especially Public University and also the country. Among the implication of unemployed graduate are,
First, inability to meet financial responsibilities and basic necessities of life. As Asaju K., Arome S. & Anyio S.F. (2014) said the unemployed individuals are usually unable to earn money to meet financial responsibilities and the basic necessities of life. It is because they have no job so they unable to earn monthly income that they need to meet financial responsibilities and the basic necessities of life. As example, when graduate is unemployed they will be unable to repay their education loan such as PTPTN. Nor Syazwani Ab. Rahim (2013) also state the increasing number of unemployment in a country may increase the cost of standard living. Second, can lead to crime activity. Tang, C. F. (2009) state that unemployment is positively related to crime. Asaju, K. et al. (2014) also added that unemployment brings about widespread criminality, societal ills and social vices such as hooliganism, armed robbery and prostitution. Nor Syazwani Ab. Rahim, (2013) said that unemployment have given an important role in explaining the change of crime rate. It is all because when people is unemployed, they will have no salary from legitimate activities hence it can lead to involvement in criminal activities due to their need for money to cover their cost of living especially during this bad economy. Third, high rate of poverty. A country with high unemployment carry means they are not using all of the available resources, especially labor and because of that unemployment happen. A country can have higher output if all available resource such as labor, raw material were utilized efficiently. It can leads to loss of potential output in an economy when available resource not utilized efficiently. In addition, during period of unemployment, there are possibility the graduate can lose their skills due to lack of practice. Moreover, it also can lead to high rate of poverty and slow economic development. It is because many people are unemployed.  Ariff, K. A. M. (1973) state that the unemployment is likely to be serious threat to labor force in the future. It can also be refer to economic of our country.
Figure 1: Unemployment rate ( Source: Trading Economics)
Figure 2: Unemployment graduate rate (Source: EduAdvisor)
Figure 3: Unemployment graduate rate by tertiary education (Source: EduAdvisor)

REASON FOR PUBLIC UNIVERSITY GRADUATE UNEMPLOYED

There are many reason that lead to Public University graduate being unemployed even though they have academic qualification. Among the reason they being unemployed are,
First, more to theoretical than practical.
Theoretical here refer to theory or fact while practical here refer to activity practiced. As we already inform, Malaysian education is based on examination oriented and because of that Public University focus on provision of theory which refer to learning process in class in order to prepare student for examination. They not focus more on practical which refer to practice what they have learned either in or outside of the class which will result to insufficient practice or soft skill. And it can lead to graduate being unemployed. Unlike other tertiary education, they focus on both theory and practical. In addition, they also have tutorial session after class. As example, private university’s entrepreneur student need to make and sell their product. At least by doing so, they can gain experience on how to produce their own product, innovate existing product and find efficient way to sell their product. In summary, they are able to experience and implement what they have been learning in their class in order to prepare themselves for work world in the future. It is because employer nowadays not only look at academic performance but also skill the graduate have. As Holmes, A., & Miller, S. (2000) said, employers are now looking for graduate with not only academic capabilities, but also developed the key skills that will enable a successful and expeditious transition from education into employment. It is all due to majority graduate nowadays have excellent academic result or performance but lack of soft skill. Unfortunately, public university more focus on theory than practical. Therefore, public university need to balance up theory and practical in the same time while student still in campus before they graduate so that they at least have experience on what they will have to do when they work in the future.
Figure 4: List of examination in school level (Source: Ministry of Education Malaysia)
Second, lack of racially and ethnically diverse among student populations.
Department of Statistics Malaysia state that among Malaysian citizens, ethnic Bumiputera recorded the highest percentage with 68.6%, followed by Chinese 23.4%, Indians 7% and others 1%. It is proven that there are various type of ethnic in Malaysia. National center for education statistics state that racial and ethnic diversity can enrich the school experiences of students and teachers in many ways. As they can communicate in many language or at least they can practice speak English with other ethnic. This is also can be regard as simple way which they can do to strengthen their English and improving their communication skill. There are many other way to strengthen our English such as listening to English music and watch English movie but speak it loudly is the simplest way because we can also practice our communication skill in the meantime. Unfortunately, there are majority Malay student in public university unlike other tertiary education. Just a few of the student is Chinese which come from Sabah and Sarawak in public university. As example, UITM only have buimiputera student because it is one of the government initiative to encourage bumiputera to have academic qualification while increase their education level. Da, W. C. (2007) also state that since New Economic Policy (NEP) with its two thrusts of ‘eradication of poverty’ and restructuring society and economic balance was implement, the racial composition in public universities has changed and the Bumiputeras became and continues until today to be the predominant ethnic group in public institutions. As we know, Malay people shy to speak English because they afraid that their pronunciation or word will give different meaning beside what they mean to say. It is may also due to lack of confident.  But, if there are other ethnic such as Indian and Chinese in their class, they will have to speak in English because not all other ethnic understand Malay language. Or at least they have to speak in English because majority of other ethnic such as Chinese prefer to speak in English. Therefore, they can practice speak in English and at once strengthen their English and communication skill. Moreover, by doing so they can gain confident to speak in English and also improve their communication skill better than before but unfortunately there are majority Malay student in Public University. Ramakrishnan, K., & Yasin, N. M. (2011) prove that the soft skills are important in securing a job in the job market Therefore, public university student should try to improve their communication skill either with their own method or getting helped from university staff.
Figure 5: Ethic in Malaysia (Source: Department of Statistics Malaysia)
Third, number of student in a class and their outcome.
Number of student in a class can also give effect to lecturer focus or attention and not to forget student achievement. As Bressoux, P., Kramarz, F., & Prost, C. (2009) said that class size has a significant impact on students’ outcomes especially during combination classes. The higher the number of student per class, the higher possibility of negative impact on students’ performance outcomes. On the other hand, the smaller the number of student in a class, the higher possibility of positive impact on students’ performance outcomes. If there are large amount of student in a class, it will be difficult for the lecturer to make sure that all student get and understand what they are trying to teach or given to them especially if it take place in a lecture hall which contain more than 60 student per class. Meanwhile if the number of student in a class is small like below 30 then the lecturer and student can actively and freely interact among each other on topic they learn or on what they not understand regarding the subject itself or job world which they will enter in the near future. The lecturer also can share some tips or experience about education and job world because they have many experience in education and wok sector compare to student which will give new knowledge to the student. In addition, students are not likely to be overlooked in classes. By doing so, it is easy for the lecturer to make sure that what they teach reached the student and in the meantime can also build stronger relationships with their student. It is because lecturer also a human, they will be unable to concentrate or give attention to all student especially the veteran one if there are many student in their class. In addition, it is important for student to know and understand what have been delivered to them by their lecturer so that they will get the key point and able to answer on exam and apply or practice it during or after they graduated. Unfortunately, most of Public University held class in lecture hall which will place more than 60 student in there compare to other tertiary education which place only few student in a class. Therefore it is better if learning process take place in small classroom with less than 30 student because lecturer will be able to give full attention on each of the student which will give effect to the student understanding and performance in class.
Fourth, insufficient of the available facilities.
‘It is widely recognized that the availability and the quality of physical inputs also provide some indication of efficiency and quality of an educational provision’ (Fuller, B.  1986).The facility refer to classroom, library, laboratory, and computer facilities. Unfortunately, availability of those facility on some Public University is insufficient. It may also due to low fees imposed on student and low allocation of budget spend by government on social sector including education sector  which is only 5% for education and training, health, housing and the well-being of the resident. Wilkinson, R. & Ishak Yussof (2005) said private colleges in contrast, spent more on laboratory and on computers compared to public universities. Other tertiary education also enroll large number of students in Information Technology and by doing so, they are able meeting the substantial costs in laboratory and computer facilities. As we know, they imposed higher fee compare to public university which can be used to accommodate all the facility needed. Facility is important because without it the activity that should or can be done will be unable to carry out. As example, science student should carry out various experiment to understand what they have learn but if the facility is insufficient, it will affect their experiment process and they may be unable to carry out the experiment. It may result to insufficient practice or experience which can be a reason for unemployment. But on the other hand, with provision of sufficient facility at campus, all student can easily carry out their role as a student by using all those facility to do experiment, assignment and many other task. It will give them experience that they need when they work in the future. Therefore, Public University need to improve their facility to enable student carry out their task so that they will exposed a bit to working environment.
Figure 6: Budget allocation on 2016 (Source: Ministry of Finance)
Figure 7: Budget allocation for development purpose on 2016
(Source: Ministry of Finance)

CONCLUSION

In conclusion, it is seem like normal matter when we hear an adult is unemployed. But on the other hand, it is quite a shocking news when we hear graduate is unemployed. It became more shocking when we hear that the graduate that is unemployed is from Public University especially those graduate are the highest one who is being unemployed which represent 51%. The second highest unemployed is graduate from Private University which represent 34%. Meanwhile the rest is graduate from polytechnic and community college which represent 13% and 2% respectively.  Usually people like employer will want to employ or hire University graduate because they are known as educated person with qualification especially public one. It is because they are regard as excellent in academic due to though subject that they able to carry and pass during study in University. There are many reason that lead to Public University graduate unemployed such as their learning process in campus focus more on theory compare to practical. Insufficient of facilities available can also lead to lack practice which cause they being unemployed. In addition, their number of student in a class affect their academic performance due to unable to ask or discuss what they do not understand. Lastly, lack of racial and ethnic in their population that make them discourage to speak in English and improve their communication and also soft skill. That are some reason why they are unemployed. Now, here are some implication or effect if one unemployed especially graduate. First, they are unable to meet their necessity and financial obligation such as pay hire purchase loan for motorcycle and so on. They also have tendency to be criminal due to inability in earning legitimate money to cover their cost of living. Third, there will be high rate of poverty due to high unemployed graduate which due to their inability to support themselves.

RECOMMENDATION

Here are some recommendation that Public University management, their student and other related people such as government can consider or implement to reduce number of Public University graduate unemployment. Among the recommendation are,
First, balance up education in Public University.
As we already know, education in Malaysia is based on exam oriented and because of that Public University syllabus more on theoretical than practical which is for purpose of preparation for examination. Public University must balancing up between theory and practical especially in classroom maybe at least 40%. It is because practical is important for student in order to prepare themselves for working world in the future. University is a place where student can get most of knowledge and experience because they spend their time at campus for half a day compare to other places such as tuition academic and house. In addition, there are many experience and expert lecture with high level of education and working experience in working industry to guide the student on study and other related matter in campus. Moreover, there are some program held in campus either by group of class, association or university itself which give added knowledge to student. Therefore, Public University should increase practical level for student either in campus or outside so that it will give experience and knowledge that they need in their life especially for preparation of working world in the future.
Second, increase soft skill of the student.
‘Soft skills are nontechnical skills such as communication, management and leadership which are required for successful practice’ (Ramakrishnan, K. & Yasin, N. M., 2011). As we know, majority of student in public university is Malay and just a few of them is Chinese from Sabah and Sarawak which known as Bumiputera especially Universiti Teknologi Mara (UITM). It is because UITM only take Bumiputera as student to increase Bumiputera level of education. And because of that there are no other ethnic such as Chinese and Indian in our class that we can practice speaking English with due to their preference to speak in English. We cannot do anything about that because it is for Bumiputera benefit ourselves. Therefore, the Public University itself should help their student to strengthen their English and communication skill. It can be done by increase English class or held a program to improve soft skills of those student. They can also encourage student to participate in association so that it can train soft skill of the student. It is because university is the main place for those student to learn what they need and should know. It is all for their preparation into entering job world. Ramakrishnan, K. & Yasin, N. M. (2011) state that the soft skills are important in securing a job in the job market. By improving student soft skills, they will have more confident and advantage in getting and securing their job in the future.
Third, limiting maximum number of student in a class.
As Bressoux, P. et al. (2009) said that class size has a significant impact on students’ outcomes especially during combination classes. It carry means that larger amount of a student in a class will lead to negative impact on those students’ outcomes. As example, when the learning process held at lecture hall which consist more than 30 student. On the other hand, it will lead to positive outcome on their performance if those student were allocate less than 30 student in a class. Therefore, Public University should set a limitation for students per classes. It is because the lecturer can give more attention to the student while teach them to make sure they understand what the lecturer are trying to taught. Moreover, the lecturer and the student can also having an active interaction such as discussion during class due to low number of student in the class. The student can also have more opportunity to ask what they do not understand regarding what they just learn or about other related matter such as about job world without being shy because they already know and familiar with the lecturer and also the student. In addition, the student and the lecturer can build strong relation that will benefit them in many way. Not to forget, small amount of student in a class can lead those student to connect among each other better which is giving them many benefit. First, easy to discuss what they have learn on class especially if there are any topic that they not understand especially if they unable to go to the class due to sick. Second, they can discuss about assignment especially group assignment, performing a group and delegated work or task that they need to do strategically. Third, increase motivation to go to class because they know and familiar with the student in the class compare to when they are located in a lecture hall because they unable to interact freely among the student. By limiting number of student per class such as 30 student, it will lead to positive outcome on their performance which is can lead to better communication skill, soft skill and more exposed to job world.
Fourth, increase government allocation on education sector.
According to Ministry of Finance Malaysia, government allocation on 2016 is increase by RM 6.5 billion than last year which is RM 260.7 billion. But, from those large amounts, only 20% of the budget will be locate for development purpose and the rest is for operating purpose such as emoluments, supplies and services. And for development purpose, only 5% of those 20% is for social sector which is education and training, health, housing and the well-being of the resident. The other 15% is for economic sector. In addition, government highest priority on 2016 is to strengthen economic while advancing Bumiputera Agenda and ease cost of living of resident is located fourth and fifth priority. Second and third priority is increase Productivity, Innovation and Green Technology and empowering Human Capital respectively. Now we can clearly see that most of the budget or spending is being located or focus on other sector compare to education sector. Therefore, government need to increase their allocation of budget on education sector so that education sector can spend more on improving their facility in the campus especially Public University such as computer laboratory, parking lot, experiment laboratory and other related facilities so that their student can carry out all activity that they need and should do to increase their knowledge and experience without go to other place. By doing so, the student still can gain knowledge and experienced on what they will do in working sector in the future although they are still in campus and not yet graduated.
Fifth, encourage student to have part time job.
Student nowadays is lacking exposure to job market. It is because Malaysian universities are not producing their graduates to ready for work but make them ready more to examination due to our education system that too examination – oriented. One of other reason is maybe due to never having a part time job and lack of joining program that could lead to their exposure to job market. Besides just having the university held a program to increase student exposure to market, the student themselves should do something to expose themselves to job market. They can apply for part time job during their semester holiday to increase their knowledge and experience in job market using hands on technique which they experience it themselves. It is also a way for them to practice what they have been learning in class. By doing so, they also can earn some income which they can use to buy book for the next semester. As Ramakrishnan, K. & Yasin, N. M., (2011) said social and cultural norms can also play a role in whether students are exposed to work environment. It is all due to their lack of exposure to the real job market that will cause them to unable to adapt themselves in work world in the future and this could lead to unemployment among graduate. So it is important for the student to expose themselves to working environment by having a part time job during their free time especially during semester holiday.

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