ACKNOWLEDGEMENT

Alhamdulliah, all praise to Allah SWT for giving me chance to complete this

assignment . Finally I have done it and be able to submit it. I learnt a lot

during complete this assignment about unemployement issue in Malaysia .

First , I want to say thank you for those people who helped me to finish this

task and give supports wherenever I need them . Next for my kind-hearted

lecturer, Sir Ilyas who always make sure I am on the right track while doing

this assignment . Also a big thank you to my classmate , FIB 3D who were

always there when I had trouble in completing this task . Last but not least ,

thanks to my beloved parents who never stop sending doa so that I can

finish this assignment successfully .

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INTRODUCTION

These days , the “ unemployment “ issue is always heard . This is not

surprising at all since unemployment have existed for a very long time ago in

another countries include Malaysia . By doing this task , I meant to

understand about the definition of unemployment , type of unemployment ,

and the role of government to prevent the unemployment .

We need to define labour force in oder to understand the concept of

unemployment . Labour concept is defined as all person above 16 years of

age and older who are working or actively seeking work . Labour force is

divided into two section which are employed and unemployment .

Unemployment is defined as labour force participants are available and

willing to work but are unable to find jobs . This will eventually resulted in the

loss of income , production , and human capital nation . The unemployment

rate is high , it will usually happen during economy recession where labour

supply exceed demand .

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There are four type of unemployment which are frictional unemployment ,

cyclical unemployment , structural unemployment and seasonal

unemployment . Frictional occur when the people are in between jobs ,

entering or re-entering the labour force. This may even happen in full

employment quit their job for a better position or higher wages or when fresh

graduates are actively seeking jobs . Next , cyclical unemployment occurs

when there is a lack job because of a downswing in a business cycle .

Structural unemployment arises due to structural changes in the economy of

a country . It occurs during the changes in technology or foreign

competitions . The skills , talents , and experiences of workers are unwanted

due to change in technology . Lastly , seasonal unemployment arises due to

seasonal variation in the activities of particular industries for example , a

fisherman is unable to catch in winter or during monsoon season .

(Vengedasalam, 2007)

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EFFECT OF UNEMPLOYMENT TO OUR COUNTRY

Unemployment financial costs

The government and the nation suffer. In many countries the government has to pay the

unemployed some benefits. The greater the number of the unemployed or the longer

they are without work the more money the government has to shell out.

Therefore, the nation not only has to deal with the lost income and decreased

production but also with additional cost.

Spending power 

The spending power of an unemployed person and his/her family decreases drastically

and they would rather save than spend their money, which in turn affects the economy

adversely.

Reduced spending power of the employed

Increased taxes and the insecurity about their own work may affect the spending power

of the working people as well and they too may start to spend less than before thus

affecting the economy and also the society in a negative manner.

Recession 

With the increase rates of unemployment other economy factors are significantly

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affected, such as: the income per person, health costs, quality of health-care, standard

of leaving and poverty .

MALAYSIA UNEMPLOYMENT RATE FROM 2012-2014

http://www.statista.com/statistics/319019/unemployment-rate-in-malaysia/

According to stastistic by unemployment rate in Malaysia from 2012-2014 , it

shows that unemployment rate for to 2012 is 3.03% , the rate from 2011-

2012 decreasing 2% . In the next year , unemployment rate for 2013 is

approxmimately 3.1% and unemployment rate for 2014 is dropping back

2% . It can be concluded , according to statistic that the unemployment rate

in Malaysia has been reduced .

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CURRENT ISSUE ON UNEMPLOYMENT

Young, jobless Malaysian grads a RM500m strain on taxpayers

By Md Izwan and Zurairi AR

Published: 9 October 2012 7:06 AM | Updated: 9 October 2012 11:26 PM

KUALA LUMPUR, Oct 9 — Bad work attitudes coupled with poor

communication skills topped by unrealistic pay demands are the three

biggest grouses employers have in turning down fresh graduates, Southeast

Asia’s top online recruitment firm Jobstreet has found — suggesting that the

nearly RM500 million the Najib administration has proposed to spend on

jobless youths may not be enough to enough to make them marketable.

A whopping 64 per cent of employers surveyed by Jobstreet said they

rejected the fresh graduates because the job seekers had asked for

unrealistic remuneration during the interview, the job search agency told The

Malaysian Insider in a recent email inquiry.

Another 60 per cent said they were forced to turn down the graduates due to

bad attitude, personality and character. 

“Many are currently unemployed because the courses they studied for at

university do not have a wide market. In fact, many graduates do not know

what they want to do after they finish their studies,” said an assistant human

resource manager with an international insurance company who asked not to

be named.

In his Budget 2013 speech presented in Parliament last month, Prime

Minister Datuk Seri Najib Razak had mooted setting up a Graduate

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Employability Taskforce with an allocation of RM200 million to strengthen the

employability of jobless graduates under a Graduate Employability Blueprint

by the end of this year ( Refer article page 13 )

(htt13)

December 2013 unemployment rate fell to 2.9%

Tuesday July 23, 2013

Published: 21 February 2014 3:53 PM

Malaysia continued to enjoy full employment when its unemployment rate

for December last year fell to 2.9% from 3.5% a month earlier.

The unemployment rate was also lower than the 3.3% posted in the same

month in 2012, the Statistics Department said today.

The number of employed and unemployed persons recorded a decline of

131,400 and 59,600 persons to 13.55 million employed and 425,000

unemployed persons respectively in December last year.

(htt14)

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Unemployment In Malaysia Higher Than Neighbouring CountriesPublished on Thursday, 27 November 2014 17:19

 

KUALA LUMPUR - The government needs to act immediately to overcome two

major problems involving young Malaysians today, unemployment and

underemployment.

Bukit Mertajam MP Steven Sim said that young Malaysians make up 62.8% of

the country’s workforce and according to the answer given in Parliament by

the Human Resource Minister; youth unemployment is currently at 10.4%.

“Yet in the same breath, it is only 7% in Singapore and 3.4% in Thailand. The

question is, why are we not able to lower youth unemployment at least to

the levels of our neighbouring countries?” the DAP statesman said.

“I want the government to realise that the problem of underemployment is

not limited to just the formal definition of “those who are working less than

30 hours a week and are able or wish to do more”. It also encompasses the

overall quality of employment, for example low wages, mismatched skills or

qualifications to the jobs undertaken, unconducive work environment and

others. For example, in the government’s reply to me in Parliament last year,

it was revealed that 21% of our graduates are forced to work in jobs which

do not require any tertiary education,” he added.

“In other words, the quality of education, training and employment which

our young people receive today is very important because its consequences

linger on for at least a decade. If nothing substantial is done today, we will

see the adverse effect not only on our youth but also on the economy as a

whole ten years from now,” he explained.

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He also urged the Ministry to work with related-ministries as well as the

Department of Statistics to publish an NEET “Not in Education, Employment

or Training” report for youth. This measurement is used in many countries in

the world to better reflect the actual situation of young people in today’s

economy. However, no such reports are available in Malaysia.

“I urge the government to formulate a workable roadmap to assist our

industries to reduce the dependency on cheap low-skilled foreign labour. This

should include assistance such as grants especially for small and medium

industries to increase their value, innovate, improve on technology as well as

workers’ skills and provide better employment packages to their workers,”

he said.

(htt12)

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The unemployment rate in the country has risen by 0.1% to 3.1% in May this year, compared to 3.0% in April.Published: 24 July 2015 4:13 PM

According to the Principal Statistics of Labour Force, Malaysia for May this

year, issued by the Statistics Department, the year to year unemployment

rate recorded an increase of 0.2%.

"The increase is following a reduction in the participating rate of the labour

force by 0.1% out of 67.5%," said the statement here, today.

The information was obtained from the Labour Force Survey which was

implemented in accordance with the standard of the (ILO) International

Labour Organisation.

The survey encompassed urban and rural areas and investigation covered

economically active and non-active residents. Labour force referred to those

aged 15 to 64 years. – Bernama, July 24, 2015.

(htt16)

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THE ROLE OF GOVERNMENT IN CONTROLLING

UNEMPLOYMENT

In an effort to overcome the country's economic meltdown, the government

has sent trade missions abroad to attract more foreign capital into Malaysia.

They are trying to advertise the advantages of the country if foreign

investors were willing to invest in their country. In fact, the government has

tried to run some mega projects to ensure the country's economy buoyant

again. South Johor Development Project and High Speed Rail KL-Singapore

development expected to raise the country's economy and reduce various

taxes.

In addition, the government has initiated various programs to handle youth

programs such as English language skills and prioritize the establishment of

the institute with foreign countries such as Germany. The program is able to

provide one of human resources with high skills to compete in the era of

globalization. Availability of highly skilled workers is also a key target country

for foreign investors in the future.

The government also facilitate business financing especially to the youth.

The bank itself has the ease of getting a personal loan to help youth start

their business on a small scale. This drastic measures to ensure more small

and medium enterprises can be established and provide better job

opportunities in the near term. Youth who do not work will take this

opportunity to try their luck as a businessman.

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Actually, the problem of unemployment is not a new issue. Only people must

think positively and try to raise the skills themselves. The changing world of

work by their technology and develop skills that are often only able to sit in

the same place all their lives. "Want a thousand power, do not want a

thousand pretexts"

(htt15)

CONCLUSION

Throughout this task , the unemployment issue can effect our economy .

There are up and down in the unemployment rate so we must take action to

overcome this problem . What action to be taken to solve unemployment

among undergraduates. Firstly , give financial loan facility to undergraduate .

Next , undergraduate must behave more creative and innovative does not

choosy to get job . Government should provide more opportunities further

education to higher level and provide unemployed graduates training

scheme . Malaysia government and its people have to take stronger imitative

from now on to prevent unemployment issue from increasing .

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REFERENCES

(n.d.). Retrieved from http://www.malaysiandigest.com/news/529912-unemployment-in-malaysia-higher-than-neighbouring-countries.html

(n.d.). Retrieved from http://www.themalaysianinsider.com/malaysia/article/young-and-jobless-malaysian-grads-a-rm500m-strain-on-taxpayers#sthash.iN0AC3V5.dpuf

(n.d.). Retrieved from http://mystarjob.com/articles/story.aspx?file=/2013/7/23/mystarjob_news/20130723162658&sec=mystarjob_news

(n.d.). Retrieved from http://azman-duniaku.blogspot.my/2007/09/punca-punca-dan-cara-cara-mengatasi.html

(n.d.). Retrieved from http://www.themalaysianinsider.com/business/article/december-2013-unemployment-rate-fell-to-2.9

(n.d.). Retrieved from : http://www.themalaysianinsider.com/business/article/unemployment-rises-in-may#sthash.RWB0j029.dpuf

Vengedasalam, D. (2007). Principle Of Economies. In K. Madhavan, Principle Of Economies (p. 303). Oxford Fajar Sdb.Bhd.

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APPENDICES

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15

16

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