SELANGOR: Malaysia’s economy is recovering, tourists are returning, and investments are booming. Economic activities are normalising, domestic demand is higher, and the unemployment rate has returned to pre-pandemic levels. On the surface, things seem positive. But the rosy data coming out of Malaysia masks a looming crisis: Youth unemployment.
Just before the Chinese New Year, the Department of Statistics Malaysia released its labour report, showing that the unemployment rate held steady at 3.3 per cent in the final month of 2023, with higher employment across all sectors.
The figures for youth unemployment, however, told a different story. As of December last year, 307,200 young Malaysians aged 15 to 24 were jobless, representing an unemployment rate of 10.6 per cent. Meanwhile, the unemployment rate for those in the wider 15 to 30 age bracket was 6.4 per cent, comprising 432,100 youths.
Putting this into context, these youths account for about 76 per cent of the 567,800 people who do not have jobs in Malaysia. Another 5 to 6 million students are set to graduate this year, compounding the issue. At the same time, job creations in 2023 slowed down, making things even more challenging for young people seeking to enter the workforce.
The social, economic, and political consequences of youth unemployment cannot be underestimated. This isn’t simply a cyclical issue: The problems and flaws are deeply rooted within the system itself, requiring structural reform to achieve lasting change.
Source: CNA
