When the job market loses its first rung — Soon Jan Jan

August 26 - Despite Malaysia's unemployment rate hitting a ten-year low of 2.9 per cent, a troubling trend remains hidden. Around 1.93 million Malaysians with tertiary qualifications are working in jobs that don't match their qualifications. Nearly one in three graduates are underemployed. Only a quarter of Malaysia's jobs are classified as skilled.

Half of graduates are overqualified for their roles and earning less than RM2,000 a month. The issue is not just about the sheer number of graduates but the mismatch between job requirements and applicants' skills. China's situation is similarly dire, with youth unemployment at 17.9 per cent. AI is exacerbating the problem by taking away the entry-level jobs that once served as stepping stones.

Policymakers should focus on the quality of jobs being created, not just the number of jobs. There's a pressing need for better data to identify sectors and institutions facing the most severe qualification-job mismatches. Universities must adapt rapidly, offering shorter, more relevant qualifications that emphasize human skills like judgment, communication, and teamwork.

Technical and Vocational Education and Training (TVET) should also be expanded to provide clear pathways into skilled, well-paying work. The question now is not whether young Malaysians can find work, but whether the work is worth the investment of their time and education.