Wrong to push graduates into low skill, low salary jobs, says Kula

 

It is not appropriate in the long term to push graduates into semi-skilled and unskilled jobs with low salaries as it could lead to future underemployment and productivity loss for the nation, said Ipoh Barat MP M Kulasegaran.

The former human resources minister said even if salary levels improve gradually with economic growth, post-Covid 19 pandemic, Malaysia's reliance on cheap labour will give no guarantee that wages will go up in tandem.

"By paying youths low wages equivalent to minimum wage, we have underutilised the potential of youths in the country, and so policies must be drawn up to address this problem.

"Underemployment could be the real threat to the economy in the long term," said the DAP vice-chairperson.

He was responding to Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed's reported remarks that graduates should be grateful if they get a job even with a low salary amid a struggling economy.

Mustapa also said this was due to a weak job market resulting from the economy shrinking 5.6 percent in 2020.

"As a sitting minister, I find that it is utterly irresponsible of him to say graduates should be grateful if they get a job even with a low salary.

"It is his job to ensure that graduates do not have to settle for low salaries," said Kulasegaran (above).

Overall, he noted a need for structural change in the economy to provide industries with incentives that encourage their move into a higher-value chain, with more opportunities available for skilled youths.

At the policy level, Kulasegaran urged the government to set up an independent bipartisan committee comprising MPs, NGOs, employers, unions and other stakeholders to address the issue of youth unemployment and underemployment.

He also said Parliament should be reconvened immediately to open room for debate of related policies.

Mustapa previously said that graduates' salaries last year was lower than usual because of the pandemic but projected that it would get better in the next three to four months.

The previous Pakatan Harapan government had set the minimum monthly wage to RM1,200 in major towns under 57 city and municipality councils, while the minimum wage remains at RM1,100 a month for the rest of the country. - Mkini