The Unemployment and Education in Malaysia

Chong, Sin Yi (2022) The Unemployment and Education in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Rising unemployment is one of the challenges that have triggered global concerns recently. For this reason, this research aims to investigate on labour force education levels towards unemployment problem among Malaysian as well from other two aspects, which are real government education expenditure and real gross domestic product (GDP) per capita. This quantitative research adopted statistical methods, which was conducted over 38 years period from 1982 to 2020. The result shows that the negative relationship between unemployment and GDP is aligned with Okun’s law while labour force with secondary education has also been discovered to exert significant negatively impacts on unemployed persons in long run. The real government education expenditure, labour force with non-formal and primary education is found to be insignificant in this model. However, labour force with tertiary education is found to increased unemployed persons in both long run and short run. Therefore, the findings provides an opportunity for policy makers to focus on increasing the employability of tertiary educated persons. Moreover, enhance policy that targets zero dropouts in secondary schools. It is recommended that future study should work on topic relates to factors or causes of student’s dropout in secondary school. This should be done in order to improve the understanding and allows government to have early interventions for students at risk of dropping out. Furthermore, it is important have future research on unemployment at specific education level. It is advisable in trying to include more than one variable to improve the model. This enhances concerns to investigate more research in this field not just only focus on unemployment but also in education perspective.