Minister disputes claim on increase of tertiary-educated workers in low-skilled jobs

KUALA LUMPUR: The claim that Malaysia’s underemployment rate among tertiary-educated workers increased by 100,000 in the third quarter (Q3) of 2024 is inaccurate, says human resources minister Steven Sim.

Responding to Afnan Hamimi Taib Azamudden (PN-Alor Setar) who raised the matter in the Dewan Rakyat today, Sim said the actual increase in underemployment was only 10,000 workers.

He said the underemployment rate for Q3 2024 stood at 36.8%, a slight improvement from 37.3% during the same quarter in 2023.

“Alor Setar’s statement that the number of underemployed individuals with tertiary education is 1.95 million, with an increase of 100,000 compared to the previous quarter, is inaccurate,” he said during Minister’s Question Time.

“Comparing the two quarters (Q3 and Q2 of 2024) is not right, as the actual data does not show a significant increase.”

Underemployment, as defined by the statistics department, refers to individuals with tertiary education who are employed in semi-skilled or low-skilled jobs.

Earlier this month, the department reported that about 1.95 million tertiary-educated workers in Malaysia were underemployed in semi-skilled or low-skilled jobs as of Q3 this year.

In its recently released monthly labour force report, the department said the figure was an increase of about 100,000 workers from the second quarter of 2024, representing 36.8% of the total number of tertiary-educated workers.

In the Dewan Rakyat, Sim reiterated that the government remained committed to addressing underemployment and said it was actively implementing several initiatives like the MYFutureJobs portal, “Carrier Bridge Tool”, and “Wage Guide” system to improve employment opportunities.

Sim also said 66 memoranda of cooperation had been signed with industries such as oil and gas, automotive, and hospitality to enhance employment prospects.

He said agencies like the labour department, skills development department, and HRD Corp offer TVET-based training programmes for both theoretical and practical skills in industries with current demand.