Employed but stuck: Malaysia’s resilient labour market masks a career mobility gap

Malaysia's employment landscape remains stable with a low unemployment rate of 2.9% in the first quarter of 2026. However, this data may be misleading as it overlooks a significant issue: many of the 1.93 million tertiary-educated workers in the country are stuck in roles that do not match their qualifications. These workers, representing 35.2% of the employed workforce, found themselves in semi-skilled or low-skilled positions despite their higher education.

Malaysia's labour market may be resilient, but it also hides a gap between employment and career progression, where qualifications and experience do not necessarily translate into more skilled, complex roles. According to Lim Bee Ing, Centre Director of The University of Manchester South East Asia Centre, the focus should shift from merely being employed to achieving meaningful career progression.

For experienced professionals, this means developing the ability to lead across functions, make strategic decisions and navigate change. The University of Manchester's MBA programmes have found that 59% of the 2024 class changed sectors, while 27% changed countries, industries and job functions. This suggests that experience alone is not enough to guarantee career growth.

Professionals must acquire broader capabilities, particularly through postgraduate education, which can help them move into more complex work, take on greater responsibility and lead transformation projects. While experience builds capability by exposing professionals to new problems and higher responsibilities, a Master's degree can only help if it aligns with a clear career transition, such as moving into a managerial role, changing functions or industries, or assuming international responsibilities.

The value of an MBA lies in how it broadens a professional's perspective, enabling them to apply their experience to new challenges and navigate the impact of emerging technologies like artificial intelligence. Employers are increasingly seeking professionals who can interpret data, understand technology and lead digital transformation.

Thus, postgraduate education is not merely about acquiring more knowledge but about applying it to real-world business challenges. The University of Manchester's Global Part-time MBA programme supports this approach by offering flexible learning, interactive workshops and practical business projects, catering to experienced professionals with an average of 12 years of professional experience.

The programme emphasizes the development of strategic thinking, data interpretation and the ability to navigate complex business environments. Career progression should be viewed beyond salary benchmarking and include factors such as more skilled work, broader decision-making responsibility, access to regional or international opportunities and the ability to lead complex projects.

As Malaysia continues to build its human capital, the next step should be to move beyond employment and ensure sustained progression, allowing talent to develop and utilize its full potential.