PETALING JAYA: A survey has debunked the common argument that many youths are unemployed because they are “asking for too much” from employers.
The School to Work Transition Survey (SWTS) was carried out by Khazanah Research Institute
It found that the average monthly income sought was RM1,846.
But the youths were willing to accept even RM1,715, which is their reservation wage or the minimum salary they expect.
This crucial finding suggests that youths are prepared to accept low wages just to remain employed.
The 302-page report compares this salary to the government-mandated minimum wage of RM1,100, the RM2,000 monthly allowance for 1Malaysia Training Scheme (SL1M) participants, and the salary employers offer fresh graduates (minimum RM1,703 and maximum RM2,682).
The data indicates young Malaysians are not “unrealistic” or “asking for too much”.
The survey noted that the commonly cited reason for high youth unemployment was that young people have “unrealistic” wage expectations, asking for salaries between RM2,400 and RM3,000.
The Khazanah Research Institute paper suggested that the government set a “living wage” in addition to a review on the minimum wages.
A “living wage” refers to the minimum acceptable standard of living, beyond the basic necessities such as food, clothing and shelter. It is usually higher than the minimum wage.
It says this will allow youths to enjoy an “acceptable minimum standard of living beyond the basic necessities”.
A “living wage” will also allow for more meaningful participation in society, greater personal and family development, and freedom from severe financial stress, it added.
The report posed the question of whether the minimum wage should be fixed at the national level or by sector, locality, occupation, employment status or age.
The Khazanah paper also said any review on the minimum wage could be guided by the International Labour Organisation’s (ILO) Minimum Wage Fixing Convention, 1970 (No. 131), which Malaysia ratified in 2016.
The ILO Convention calls on policy-makers to consider the needs of workers and their families, the general level of wages in the country, the national cost of living, social security benefits, and the relative living standards of other social groups.
The convention also urges policy-makers to look at economic factors, including requirements of economic development of a country, the level of the country’s productivity, and the general desirability of attaining and maintaining a high employment rate.
A total of 23,785 male and female respondents, aged between 15 and 29, took part in the survey, conducted at the end of 2017 and the beginning of 2018. - FMT
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