Educated Unemployment: An Essay

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Unemployment is a key financial marker since it flags the inability of employees to promptly acquire profitable work to add to the beneficial yield of the economy. The more unemployed people, the lesser economic production. Unemployed people also need to keep up in any event subsistence utilization during their time of unemployment. This implies the economy with high unemployment has lower yield without a corresponding decrease in the requirement for essential utilization. High, tenacious unemployment can bring trouble in an economy and even lead to social and political upheaval. On the other hand, a low unemployment rate implies that the economy is bound to deliver close to its full limit, expanding yield, and driving compensation development and rising expectations for everyday comforts after some time. However, very low unemployment can likewise be a preventative indication of an overheating economy, inflationary weights, and tight conditions for organizations needing extra employees. Unemployment can be categorized as:

  1. Frictional Unemployment: It emerges when an individual is in the middle of employments. After an individual leaves an organization, it normally sets aside some effort to secure another position, making this sort of joblessness brief. It is likewise the least dangerous from a monetary angle. Frictional unemployment is a characteristic consequence of the way that market procedures require some serious energy and data can be exorbitant. Scanning for a new position, enrolling new employees, and coordinating the right workers to the perfect employments all require some serious energy and exertion to do, bringing about frictional unemployment.
  2. Cyclical Unemployment: It is the variety in the quantity of unemployed people through the span of monetary upswings and downturns, for example, changes to oil costs. Unemployment ascends during recessionary periods and decreases during times of monetary development. Preventing and reducing repetitive unemployment during downturns is a significant worry behind the investigation of financial aspects and the reason for the different policy tools that utilize on the drawback of business cycles to stimulate the economy.
  3. Structural Unemployment: It comes through technological change in the structure of the economy in which work markets work. Innovative change, for example, computerization of assembling or the substitution of horse-drawn vehicle via cars, lead unemployment dislodged from employments that are never again required. Retraining these employees can be troublesome, exorbitant, and tedious, and uprooted employees regularly end up either jobless for broadened periods or leaving the work power completely.
  4. Institutional Unemployment: It is the result of long-term or permanent institutional variables and motivating forces in the economy. Government policies, for example, high the lowest pay permitted by law floors, liberal social advantages programs, and restrictive word related authorizing laws; work showcase wonders, for example, productivity wages and biased contracting and work advertise foundations, for instance, high paces of unionization would all be able to add to institutional unemployment.

The stability of the economy of the country rests on the ability to maintain a low unemployment rate and provide a safe secure workplace. According to the Business News Economy, Datuk Seri Dr Mohd Uzir Mahidin said the number of unemployed people was 516,200 which is increased by 2.5% from 2017 to 2018. This clearly shows our country’s current dilemma towards the global unemployment system. In fact, global youth unemployment is higher than global unemployment which proves the troublous situation of graduates on getting a job to settle with. Malaysia’s headline unemployment states 3.4% where the youth unemployment rate is over three times higher at around 10.8% in 2017. This begs the question, why are so many young Malaysians graduates are unemployed? What are the roots for this never-ending stumbling blocks? Is there any course of actions to get the Malaysian graduates out from this dilemma? If we get to clarify all these questions above, we are on our best way to find many highly talented and deserving employers to stable the economy of our country.

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Factors That Cause Unemployment Issues

The main reason for new graduates is on the grounds of unemployment due to their lack of experience and skills. Most of the organizations like to utilize experienced employees rather than those without working experiences. The employers favor experienced representatives because accomplished employees can finish their occupations effectively and won't investing such a great amount of energy in learning their works compare to those employees without experiences. The employees who are lack of working experience will be having a hard time in finishing the work given on schedule and adjusting to the new condition and less spotlight on the employments. So, the organizations need to provide extra training and courses for those employees and this will definitely add expenses of the organization. Next, the graduates are lack of social and communication skills. The vast majority of the graduates with provincial foundation are lack of social and communication skills because most of the residents staying in villages communicate using their own dialects or mother tongues who occasionally talk in English. However, in Malaysia the all working environment expects every individual to convey efficiently in English and Malay. As indicated by Ministry of Human Resources, it demonstrates that in Malaysia female graduates are jobless compare to male graduates because female is feeble to social skills with low degrees of self-assurance contrast with male graduates despite accomplish brilliant scholarly results.

Education system plays a vital role in unemployment issues. Subjects which are instructed at school, college or university are compatible and not at the level of the occupation necessity of current era. It makes us wonder, why there is a huge gap between what students study and what they actually prerequisite for a job. Nowadays students are concentrating on subjects just for sunning back to get high marks but without understanding the content of subject which is why some highly educated people fail to tackle a job and graduates are unable to find an occupation. Another major problem due to the uneven education system is there is no any proper careers guidance service for students so they having some difficulties to look what type of jobs they can easily tackle and where to look for it. Unemployment rate issues among literate people is much higher than illiterates cause the unemployed youth dilemma which leads to frustration, as well as the crimes in society. Education system in Malaysia affects the quality of education, lack of proper training of teaching stuffs, low salary given to teachers which prompts the urge to give private lessons to students. Such an education system encourages them to memorize instead of thinking inventively. This education system clearly does not help the students to construct their studies independently, how to think creative and be more effectively and developing.

Ways to Solve Unemployment Dilemma

Government should stop the enrollment of foreign employees in Malaysia in order to solve the unemployment issues among graduates. Usually, foreign employees are from Myanmar, Bangladesh, Vietnam, Nepal, Pakistan, Philippines and Indonesia. Why they entered our nation in the first place? Foreign workers that legitimately entering this nation can build efficiency and national yield. Even though the population of Malaysia increases over every year, the enrollment of foreign employees is keeps on rising thus multiplying the unemployment issues among the Malaysian. Why do need foreign employees when our nation has highly educated graduates? As a matter of first importance, productivity per employee is characterized as a yield. Even though majority of them don't get formal training or complete optional school level, the profitability of comparable or considerably higher than local people, who are educated. The most significantly, they don't grumble unlike local people. They are quick and proficient. Moreover, when we take foreign employees, the employment for the locals is diminishing because they need to contend with foreigners. Indeed, a few organizations lean toward foreign laborers since they are eager to acknowledge lower pay than the neighborhood populace, especially in lower skilled employments. Therefore, increasingly nearby individuals will be jobless and incapable to add to the national economy.

Entrepreneurship is one of the most prominent weapons to neutralize unemployment issue among graduates. Youth as a matter of course are stimulated and enabled, they are happy to investigate new domains and take up new difficulties and risks. By working as an entrepreneur, an individual gets the chance to gets to work at various things, shuffle various jobs which transform them into better pioneers. We all know that entrepreneurship brings huge cash from investors and even remote customers, but it also has a key task to carry out in building a character. When battling unemployment, entrepreneurship is the perfect solution where entrepreneurs open ways to new pursuits, new business, new collusions and so forth. Nowadays entrepreneurs are eager to contract who don't have formal instruction or a degree but have the correct frame of mind, range of abilities and eagerness to realize, which is a major move in the manner of thinking while the corporate or huge organizations who are determined on enlisting from famous schools or waitlist up-and-comers based on capabilities not capacities. Numerous youthful personalities presently comprehend the significance of taking a gander at a consistent business development, framing the correct group and enabling it to realize that development. Industry specialists state any business that increases the value of the nature of the life of youth will definitely see a tremendous development. New businesses have the chance to develop and turn out to be huge. Consequently, graduates no longer will suffer in unemployment issues instead they will come up with something that challenges and pushing them towards their bright future. Therefore, the government should be a facilitator and not a controller in order to help graduates through entrepreneurship.


Youth unemployment has profound roots. Battling it expects us to challenge customary way of thinking, expelling, where potential, disincentives to employ and to work; by changing schools and colleges and inclining up apprenticeships and tutoring. As we discuss about earlier unemployment issues among graduates is happening due to the lack of experience and skills as well as education system. Therefore, in order to solve this dilemma, all the educators and guardians, entrepreneurs and government should play their role perfectly by not enrolling foreign employees and encourage the graduates in entrepreneurship. However, imagination is the thing that we youths do best. Our crisp, radical and positive personalities must hold onto the activity, consistently reconsidering the future in the midst of the tornado of the present.

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Educated Unemployment: An Essay. (2022, August 25). Edubirdie. Retrieved May 30, 2024, from
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