Unemployment Amongst Graduates

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Unemployment Amongst Graduates by Mind Map: Unemployment Amongst Graduates

1. Country

1.1. Big gap between the quality levels of the Malaysian graduates with the international standard, this matter needs to be handled in order to ensure that our country has skilled, versatile and marketable graduates. (10th Malaysian Plan, 2010).

1.2. Based from a human capital theory by Becker (1964) it is stated that human capital that has a high knowledge and skills contribute to the increase of the country’s economic productivity.

1.3. A high investment in producing useful human capitals is important as long as it give high and positive impacts to the economic productivity

2. Individual

2.1. It was reported in several submissions that unemployment often impacts harder on those mature-age people who have significant ongoing financial commitments such as mortgages or rent, student education expenses and obligations to support dependants.

2.2. The stress levels of just finding money to pay the utility accounts every quarter are never ending.

2.3. Some also have ageing parents to care for.

2.4. Experiences of low self-esteem and loss of self identity impact on physical and mental health and can extend to broader consequences of social isolation and the loss of social networks and support.

3. Society/Community

3.1. less disposable money to pay for food and basic living costs

3.2. The changes in income support policy requiring parents to provide more support for teenagers and young adults, for example with the introduction of Youth Allowance, means that the period of responsibility for dependants is extended into the years where mature-age workers are most vulnerable in the labour market.

3.3. Reduces people’s sense of membership and contribution to the life of the community

3.4. The impact of redundancy causes family disruption and breakdown.

4. The Cause

4.1. Economy Growth

4.1.1. No industrial training

4.1.1.1. Graduate unemployability was found to be the highest in business administration, applied science, human resource management, accounting, arts, and social science courses.

4.1.1.2. A study conducted by Central Bank of Malaysia (2002) also found that the Malaysian graduates are less skilled as compared to the international graduates.

4.1.1.3. This is shown from a report by National Associated of Manufactured (NAM), in which it is revealed that there are gaps exists in the range of skillfulness in almost all of the working fields (Kahirol et al., 2008).

4.1.2. Unstable Economic

4.1.2.1. Poor economic condition in the country could be the reason for the high number of unemployed graduates

4.1.3. Employers

4.1.3.1. Employers don’t have the capacity to employ them due to the fact that businesses are very much challenged now and most of them are reporting lower profits.

4.1.3.2. Employers are cutting costs, and when you cut costs, one of the first things you look at is your hiring policy

4.1.3.3. 68% of employers think that Malaysian fresh graduates have unrealistic expectations for salary and employment benefits.

4.1.3.4. Referring to an employers survey conducted by JobStreet in 2016, 60% of fresh graduates expect a starting salary of RM3,500 while another 30% wanted RM6,500 to fund their lifestyle

4.2. Wrong Course

4.2.1. Demand

4.2.1.1. Recruits in their 20s, the so-called generation Y, are restless compared with their elders. They have their eyes on the now instead of the future. They are less attracted to benefits such as annual bonuses, medical benefits, retirement.

4.2.1.2. They want annual bonuses portioned out on a monthly basis

4.2.1.3. They want instant cash rewards

4.2.1.4. "Gen Y recruits" are simply not impressed with job benefits like medical insurance and bonuses

4.3. Unrealistic Salary

4.3.1. Irrational salary demand

4.3.1.1. With unrealistic expectations, it becomes more difficult for a graduate to get employed for a job that offers a lower salary than what he or she is expecting

4.3.1.2. A survey by online employment portal JobStreet.com disclosed that 30% of fresh graduates are expecting to get paid as high as RM6,500 for their first job to live comfortably and 60% of them are expecting RM3,500 for their starting salary.

4.3.1.3. One of the main factors that contributed to such demands from fresh graduates are the high standard of living that they probably would have enjoyed during student life thanks to their parents' financial support.

4.4. Qualification

4.4.1. Poor communication skills & command in English

4.4.1.1. They may score good grades for English, but have poor to no grasp of the English language coupled with abysmal communication skills

4.4.1.2. A staggering 55% of senior managers and companies said that poor command of the English language was the main reason for unemployment among undergraduates.

4.4.1.3. The damning indictment of young job-seekers' attitudes is in large part due to the education policy in previous years that reduced the importance of the English language.

4.4.2. Poor character (attitude/personality)

4.4.2.1. While fresh graduates can moan about how prospective employers are asking for experience and all that, it’s more to do with jobseekers' ability to be a better candidate for the job they're applying. And (for this) we need to look at the attitude. -JobStreet's country manager Chook Yuh Yng

4.4.2.2. Plenty of jobs for fresh graduates in the country, but Malaysian graduates should first consider changing their attitude.

5. Impact

6. Introduction

6.1. Unemployment is a major life event. It can have a devastating impact on people’s lives. It affects not just the unemployed person but also family members and the wider community. The impact of unemployment can be long-lasting. As unemployment becomes more long-term, its impact becomes more far reaching, often affecting living standards in retirement. The loss of income by the parents can damage the prospects of the next generation.

7. Types Of Unemployment

7.1. Frictional

7.1.1. Frictional unemployment is when workers leave their jobs to find better ones. It's usually a voluntary exit but can also result from a layoff or termination with cause.

7.1.2. Friction is the time, effort, and expense it takes the worker to find a new job.

7.1.3. Workers must find new opportunities, go on interviews and even move before they can get new jobs.

7.1.4. An inevitable part of the job search process.

7.1.5. Causes

7.1.5.1. It would be more logical for workers to hold on to their existing jobs until they find new ones.

7.1.5.2. They might get married or must care for elderly relatives.

7.1.5.3. Have saved enough money so they can quit unfulfilling jobs.

7.1.5.4. They have the luxury to search until they find just the right opportunities.

7.1.5.5. the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.

7.1.6. Drop during recession

7.1.6.1. Workers are afraid to quit their jobs even if they don't like them. They know it will be difficult to find better ones.

7.2. Seasonal

7.2.1. Means the demand for a specific kind of work and workers change with the change in the season.

7.2.2. The period when the demand for the manpower as well as the capital stock reduces because of a decreased demand in the economy at a particular point in time in a year causes the seasonal unemployment.

7.2.3. is prevalent in those industries which are engaged in seasonal production activities.

7.2.4. Such as agricultural industry wherein the demand for workers is more during harvesting than is required in other months in a year.

7.2.5. the demand for the catering staff as well as the housekeeping staff is more during the peak season as compared to the demand in the off-season.

7.2.6. Causes

7.2.6.1. more or less predictable as it is known with certainty the time period during which the demand for the commodity changes.

7.3. Structural

7.3.1. Structural unemployment refers to a mismatch between the jobs available and the skill levels of the unemployed.

7.3.2. Caused by forces other than the business cycle.

7.3.3. Occurs when an underlying shift in the economy makes it difficult for some groups to find jobs.

7.3.4. Causes

7.3.4.1. Technological advances in an industry.

7.3.4.2. Robots have been replacing unskilled workers.

7.3.4.3. Workers must get training in computer operations if they want to keep working in the same industry.

7.3.4.4. Trade agreements, such as NAFTA.

7.3.4.4.1. When the agreement first lifted trade restrictions, many factories relocated to Mexico. They left their former employees without a place to work.

7.3.4.4.2. Example : Free trade allowed global food corporations access to their markets. That put small-scale farmers out of business.

7.3.5. Example : Web-based advertising has drawn advertisers away from newspaper ads. Online news media has drawn customers away from physical newspapers.

7.3.5.1. Newspaper employees, such as journalists, printers and delivery route workers, were laid off.

7.3.5.2. Structural unemployment occurs when workers' skills no longer meet the needs of the job market.

7.4. Long Term

7.4.1. is when workers are jobless for 27 weeks or more.

7.4.2. long-term unemployed is probably under-counted

7.4.3. Causes

7.4.3.1. The two causes of long-term unemployment are cyclical unemployment and structural unemployment

7.4.3.2. Cyclical unemployment itself is often caused by a recession.

8. Personal Growth

8.1. Lower Expectations on Salary

8.2. Willing to follow instructions

8.3. Team work skills

8.4. Handle more challenge

8.5. Be more creative

9. Concept

9.1. "wothout work"

9.2. "seeking work"

9.3. natural disaster

9.4. "currently available for work"

10. Improvise

10.1. Entrepreneurship

10.2. Urban / Rural Area Development

10.3. Reorientation of Educational Policy

10.4. Training