KUALA LUMPUR: The government is accelerating labour market reforms to address skill-related underemployment among graduates, which stood at 1.6 million people or 32.2 per cent of the graduate workforce in 2024, said Human Resources Minister R. Ramanan.
"Based on the Graduate Statistics report by the Department of Statistics Malaysia (DOSM), the number of skill-related underemployed graduates stood at 1.60 million (at a rate of 32.2 per cent) in 2024, compared with 1.54 million (at a rate of 32.4 per cent) in 2023," he said in a written parliamentary reply to the Dewan Rakyat yesterday.
Ramanan was responding to a question by Datuk Dr Ku Abd Rahman Ku Ismail (PN-Kubang Pasu), who asked about government efforts to address underemployment among degree holders, which he said had reached two million people.
He said skill-related underemployment refers to a mismatch situation where graduates are compelled to accept jobs requiring lower skills than their educational qualifications.
"The Madani Government is aware that graduates are working outside their fields of qualification.
"The government is working to raise the ceiling and strengthen the economic floor of the country, in line with the Madani Economic Policy framework, in an effort to address skilled job mismatches," he said.
Ramanan said the 13th Malaysia Plan (13MP) would drive structural change through labour market reforms aimed at creating a more dynamic, competitive and sustainable employment ecosystem that guarantees a decent standard of living.
Under the Human Resources Ministry, he outlined five key measures under 13MP to address skill mismatches in the job market.
First, he said comprehensive wage alignment would be accelerated to reduce wage gaps and improve worker compensation, with the National Wages Consultative Council to be empowered to oversee alignment of all wage-related matters, including setting starting salaries for graduates, including those from Technical and Vocational Education and Training (TVET).
Second, periodic minimum wage reviews would take into account a living wage to ensure workers receive pay commensurate with the cost of living.
Third, the e-MASCO portal would be enhanced as a comprehensive employment information platform, including salary-related data to serve as a reference for workers and stakeholders.
Fourth, priority would be given to improving job quality and matching skills with industry needs through strategic collaboration with high-impact industry leaders such as Proton, Huawei, Petronas and Daikin, ensuring graduates are placed in jobs commensurate with their qualifications and with higher value added.
Fifth, training based on the National Occupational Skills Standards (NOSS) would be implemented through the Certified Programme Training System (SLaPB) and the Industry Academy (ADI), exposing participants to real-world work experience.
Ramanan said the effectiveness of the strategy was reflected in data showing that 85.1 per cent of ADTEC graduates under the Labour Department were working in their field of study.
He said the ministry would continue short- and long-term intervention strategies to ensure the labour market is aligned with the qualifications and skills of jobseekers, so they obtain employment suited to their expertise and current market demand. - NST
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