GRADUATES UNEMPLOYMENT IN MALAYSIA: AN INDUSTRIAL AND STUDENTS SURVEY

SHURES KUMAR S/O SUBRAMANIYAM

DEGREE: Bachelor of Economics (Honours) (Knowledge Economics) FACULTY OF MANAGEMENT MULTIMEDIA UNIVERSITY - CYBERJAYA

GRADUATES UNEMPLOYMENT IN MALAYSIA: AN INDUSTRIAL AND STUDENTS SURVEY

SHURES KUMAR S/O SUBRAMANIYAM

A research project submitted in partial fulfillment of the requirements for the degree of Bachelor of Economics (Honours) (Knowledge Economics)

FACULTY OF MANAGEMENT MULTIMEDIA UNIVERSITY

COPYRIGHT
The copyright of this final year project (FYP) belongs to the author under the terms of copyright act 1987 as qualified by University Multimedia(MMU) regulation 4.1 due acknowledgement shall always be made of the use of the any material contained in , or derived from, this FYP.

DECLARATION

I hereby declare that this BBR3044 RESEARCH PROJECT is my original work except for quotations, statements, explanations and summarizes, which I have ready to mention their sources. No portion of this FYP 1 has been submitted in support of any application for any other degree qualifications of this or any other Universities.

Students name: ____________________________

Date: ______________________________

Students signature: ____________________________

Students ID: __________________________

ACKNOWLEDGEMENT

It is really a hard task for me to complete this study without the help from those people around me. I would like to express my gratitude to thank to Dr.Malarvizhi.who spends time to guide and help me patiently to complete this study. I would never able to get through this if with out your invaluable advice. I would like to thank Dr. ARUL JEGANATHAN SOLUCIS SANTHAPPARAJ and Dr. TAN SIOW HOOI .who gives me some very useful guidance and help especially when I am having the problems during completion of this study. Besides, I would like to thank my parents and family for their support and encouragement. It is meaningful and helpful to me and thanks to all my friends who willing to help me and giving a full concern to me to complete my research project. Lastly I would express the sincerest appreciation to the all the graduates and companies all over the Malaysia that has participated the survey handled out. They have made this research possible.

Chapter 1
Introduction Malaysia, a middle income country and with multi racial, transformed itself from 1971 through the late 1990s from a producer of raw materials and agricultural state into an emerging multi sector economy. At independence, Malaysia inherited an economy dominated by two commodities which are rubber and tin. New foreign and domestic investment played a significant role of in the transformation of Malaysia economy as well as the technology. Other than that Malaysia also has achieved industrialization at faster pace than its counterparts in Asia. Although Malaysia blessed with rich natural resources and primary products, its human resources development policy made a positive impact on Malaysias economic growth. To make more positive impact, the minister of higher education, universities and other institution of higher learning will play an important role in the development of human and intellect capital. Currently our government decide to make Malaysia a regional and international centre of education excellence by ensuring that the higher education institution offer quality education. Now a days education is become a major investment in human capital as more Malaysians sought to acquire knowledge, skills and technology. Its also one of the Malaysian ninth plan (2006-2010) were it has been expected that a lot money will invest in education sector. Other than that for the future benefits strengthen Malaysia government has launched the higher education strategic plan (27 august 2007) for the purpose to transform the higher education sector to produce higher knowledgeable and first class human capital as well as develop the economic. All this transformation is arise when our former prime minister (Tun Dr.Mahathir bin Mohammad) has overseen Malaysia into one of the wealthiest nation in southeast. Our former Prime Minister of

Malaysia since 1981, Tun Dr.Mahathir bin Mohammad has overseen Malaysias transformation into one of the wealthiest nations in southeast and form a new policy (Wawasan 2020) were he wanted Malaysia become one of the most developed nations in year 2020. Our nation manufacturing sector in year 1970 was 13.9% of GDP and was grown in year 1999 at 30% of GDP. The economic growth for the year 2007 is expected to remain strong with an estimated GDP growth of 6.0 per cent. With the 2008 Budget policies and strategies in place, the nations economic growth is expected to remain strong with a projection of 6.0 per cent to 6.5 per cent for 2008. At present, Malaysia is one of the worlds largest exporters of semiconductor devices of electrical goods, and now the main export of Malaysia is the knowledge worker (k-economy). The nations drive towards a fast emerging economic power in Asia was largely supported by its educational system. Since Malaysia achieved its independence, the direction of the education system was aimed towards cultivating unity. However, the directions and aims of the education system are clearly changing the through time as the country is developing into a fast developing nation. Over the years, the education system also aims to provide sufficient supply of graduate workers to move the economy of country into a developed nation. (Shahril @ Charil Marzuki). He also mentioned that currently, the focus of higher education is to educate citizens, to increase social fairness, to improve the quality of life, to participate in social revolution, to give guide for the social living in the future and also to make sure Malaysian citizen is capable to be knowledge expert. With the shifting of the production based economy towards the knowledge economy, the education institution become an important basement for producing and generating graduates workers that would be able to sustain the countrys lack of the knowledge expert. The major contribution for nation development is the education institution. The role of the higher education institution is especially educating and training the youths of the nations where they will become a leader to lead the nation in the future. Higher education institution in Malaysia consist of Public Universities, Private Universities, Polytechnics

and as well as the Colleges. In brief, the education system in Malaysia is categorized into three levels, primary, secondary, and tertiary. Most Malaysians would have completed their studies until the secondary school. All of these higher education institutions are directly placed under minister of education department. Our current minister of education is Y. B. Dato' Mustapa bin Mohamed. The public Universities are fully controlled by the minister of education rather than the private Universities and colleagues. Before the seriousness economics crises the higher education institution in Malaysia was very less. Mostly Malaysian people wanted to attend government Universities because the tuition fee was very less compared with the private Universities. After the economics crises in late 90s private Universities and colleagues become much more in Malaysia and provide better education with fewer prices. The government and the private sector are plays a major role in absorbing the fresh graduates into their workforce since many years ago. The University and college also have plays a role to make sure the labor market to absorb all fresh graduate. Since the unemployment problem arise after the economic crises, many arguments and discussions regarding the factors that contribute to this unemployment problem among the graduate. The private sector and government are representing the demand side of the labor market. Its because the private sector and government only will employee people to work for them. The private sector and government are putting the blame on the graduates for their attitude in searching for jobs and lack of technical and communication proficiencies. For the supply side its represent by the graduates which have different point of view regarding the unemployment problems. From the graduates point of view is: higher education qualification should guarantee a good job and would enable them to achieve the social status in the society. Since graduates unemployment issues has been heated agenda in many discussions, its clear that there must be some steps and drastic changes to be done to solve such problem because the unemployment among a graduates would reflect the economic performance.

Here I included the statistic of job vacancies for graduates students by state 2006. This data is important to make sure that we not loss our track in finding the factors that lead to the graduates unemployment and as well as will guide us to come out with best policies suggestion.

Definition of unemployment: Unemployment is the state in which a person is without work, available to work, and is currently seeking work (wikipedia.org). According (Websters new collegiate dictionary, 1981) unemployment is the state of being unemployed or not engaged in a gainful occupation. Both, wikipedia.org and Webster new collegiate dictionary giving the same meaning regarding the unemployment but in different perspective. The unemployment is determined by dividing the number of unemployed workers by the total civilian labor force. According to the International Monetary fund (IMF) unemployment is measured annually as the percent of the labor force that cannot find a job. The labor force comprises adults who want to work. Uncounted are those who do not seek employment or who have become discouraged enough to stop working. The Malaysian Human Resources Department saying that there is three categories of unemployment which are: those actively seeking job and failing to do so; those who seek work but failed and given up; and those who are not actively looking for the job. According minister of human resources ( YB Datuk Seri Dr Fong Chan Onn) in one of his speech, he mentioned that there are more than 40 public and private universities and university colleges in the country with over 600-thousand students and this data has been collected December last year (2007). At present, there are also more than 40,000 international students enrolled in Malaysian higher education institutions, mostly from China, Indonesia, Africa and the Middle East. He also mentioned that our countrys aim to get 100,000 foreign students by 2010 and make Malaysia a regional centre of education excellence grows closer each day. If we all work together, this objective can be achieved. According the bureau of Labor Statistic of the United States Department of labor classifies individuals as unemployment if they meet the following criteria: (1) they had no employment during the references week, (2) they were available for work during the references week, and (3) they had made specific efforts to find employment sometime during the 4-week period ending with the references week except for those individuals

laid off and expecting to recalled. Unemployment is generally measured by a rate at a point in time. It is the ratio of the numbers of those counted as unemployed during references period to the total labor force during the same period. The unemployment rate calculated as follow: unemployment rate = (unemployed workers / total labor force) * 100%. New entrants such as school leavers and drop out from the education system, reentrant of the working age population into the labor market and the increase of immigration will increase the numbers of unemployed as stated by the Ministry of education. Unemployment in long run term has two components which are: frictional and structural. The frictional part of long run unemployment arises from the job search process itself. The structural component of long run unemployment depends on institution factors such as the minimum wage and so on. At present, Malaysia with a population of 24,821,286 (2007) has 10.73 million of labor force in the same year, with unemployment rate 3.5%. The main age group was the 20-24 age groups and it made up the bulk of total first time unemployed persons who are relatively more educated. This pattern of unemployment implies that the supply of these educated workers had failed to increase in tandem with the demand for these workers. As a result, unemployment affects most of those who were more educated than those with primary or secondary or none educate persons.

Types of unemployment: There are 8 types of unemployment which I will explain in this chapter. Out of The 8 types of unemployment, there are 4 main types of unemployment which are Structural unemployment, Unemployment, unemployment. The structural unemployment is would be better if the economy is doing better. Its because people will tend to find work that suit to them quickly went the economy is doing well. It means that the structural unemployment is dependent on the economy changes. If the economy is growth well, there will be less of structural unemployment and vice versa when the economy is not growth well the structural unemployment will rise. The cyclical unemployment exists due to inadequate affective aggregate demand. The inadequate effective aggregate demand means the gross domestic product is not as high as potential output because of demand failure. In simply term the cyclical unemployment is occurs because of a downturn in economic activity. Frictional unemployment occurs when people temporally looking for jobs, searching for new jobs or new entrants in labor market. Frictional unemployment also will occur because its related to skills, payment, work time, location and so on. The rest for types of unemployment will be explained in simply term which will make easy to understand. * Seasonal unemployment - occurs because of the seasonal nature of some jobs (fruit pickers) * Hidden Unemployment - includes those that do not fit into the ABS definition of unemployment and are not reflected in the unemployment stats. cyclical unemployment, Long-term Frictional unemployment, is and Seasonal Hard core unemployment. The rest 4 types of unemployment are not so important which Hidden Underemployed, unemployed,

* Underemployed - refers to people who are working less than full-time hours but would like to work longer * Long-term unemployed - are people who have been unemployed for longer than 12 months. Hard core unemployment people who can work hard and fit to work mostly in construction area.

Scenario In this survey, the graduates sector is chosen as it represents an important and significant workforce of the country. It is generally known that higher education is essential for a countrys economic growth especially for developing nation like Malaysia. Economics current theories of long run growth identify two ways in which this happens. One way is that highly skilled workers drive technological innovations through research which in turn lead to larger social productivity increases. The other way is that even in the absence of significant of research output of the county with a highly skilled labor force has better chances of growing than one with a lesser skilled workforce. This is because skilled worker are more able to learn on the job and therefore able to adopt new skills and technologies that are important aspect for productivity increase. Worker with more work experience and with more education are likely to have more marketable skills rather than the not experienced worker and higher education. Gen David Petraeus (2007) has pointed out the importances of graduates in an organizations: for the provides exposure to diverse and divergent views; for provides specific skills and knowledge on which an officer may draw during his or her career; assists officers to develop and refine their communications skills; and, to contribute to critical thinking skills. Other than that they is two more researcher has pointed out the importance of graduates in an organization. The researcher was Graham and McKenzie. They pointed out the importance of graduates in an organization which are: for the future potential of the individuals and the prospects of graduates recruits becoming future seniors of the organizations; intelligence and knowledge to do an immediate job and injection of news ideas and energy into the organizations.

Objective of the study The objective of this research is to understand the factors that increasing graduates unemployment in Malaysia. By understanding such a problems, remedial and suggestion could be proposed to provide a better environmental in Malaysia. These studies will emphasis on the private manufacturing and higher institution. Its because private manufacturing companies and higher institution is playing a major role in employing and produce quality workers (graduates). The private companies are more concern with productivity increase and therefore would demand more skilled worker than the public and government firms. This research focuses mainly on manufacturing companies and higher institution because both are very important sector in developing our nation economic to growth well were higher institution can provide better education and can create knowledge workers. Other than that the manufacturing companies can improve our nation economic to growth well by increasing the productivity. The reason we focusing mainly on manufacturing companies and the higher education institution because to ensure the needs from both of manufacturing companies and higher education institution are match or not. In this research also we can identify what are the needs or minimum requirement of the manufacturing companies from the graduates students and as well as higher education institution quality and to identify that higher institution are providing education that required by the manufacturing companies. This research also aims to seek the requiems set by the manufacturing companies in order to employing graduate worker which are: 1. To find out whatever there is a mismatch between graduates and employers especially in arts and social science degrees. 2. To find out the explicit factors that contribute to lead the unemployments among graduates.

3. To find out what are the manufacturing companies major demands from the graduate students

All the information and data will collected from various government monitoring agencies.

Significance of the Study Its crucial for both graduate students and manufacturing companies at all levels to aware of unemployment and its circumstances. The identification of the unemployment level among graduates students indicates that these students are prone to various negative outcomes that may affect the socioeconomic status of individuals who are trying to adapting to new working environment. According to Shamsudin Bardan, executive director of the Malaysian Employers Federation he says in New Sunday Times, those employers require people who not only have knowledge but also posses the soft skills as well people who can communicate effectively and analyses and solve problems efficiency. The employability of the average Malaysian graduate is become more dependent on a mastery of these soft skills. other than that the rising of unemployed is mainly because many arrive in the job market poorly equipped with the skills required by the employers and the insufficient of job in Malaysia.Thus, proper planning needs to be developed effectively and implemented at all levels in a university and manufacturing companies to solve these negative effects by understanding the requirement by the employers to employed the graduates students.

Other than that the higher institution have to produce graduates with appropriate knowledge, skills and attitudes meeting stakeholders needs better education and as well provide training to them. As a whole this study will provide an opportunity to better recognize and assess the needs by employers and also will provide a better understand to the higher institution to providing better knowledge and soft skills to students that match with the needs by manufacturing companies

Scope of study The research would give me a clear picture to identify the major factors that lead to graduate unemployed in Malaysia. Other than that this research would certainly able to help or create or improve present policies that have been made by the policy makers. Moreover this research also will help policy makers to come with a better policy where they can overcome this graduate unemployment problems. According to Shamsuddin Bardan, executive director of the Malaysian Employers Federation, he says that there are 80,000 graduates in the country without jobs, and the number looks set to rise. Because some of the graduates are not able to find job therefore the unemployment rate amongst graduates are increasingly. Other than that my research scope also will cover the unbalance between the supply and the demand of the labor supply and the importance of the labor supply and demand balance. The increase demand for higher education and recent government push for higher intake and the new economic trend which is knowledge based economics could significantly affect the job market. The study also could make the ministry of education to think whatever the policy is being adopted in the current students enrollment would be complementing the current workforce, hr we have a clear picture that the unemployment will effect the economic situation. Therefore we need to able to overcome such problems by implementing better policies.

Organization of study

Chapter 1 consists of introduction to the research. In this chapter will discuss about the Malaysia economic status and growth. It will also discuss about types of unemployment and the definition about unemployment from various economics. The important things that going to discuss in this chapter is about why am i choose graduates for my final year project

Chapter 2 provides literature review about graduates unemployment in Malaysia and other countries. Most of the literature review is gathered from international journal, local news paper and other various government agencies releases and reports. In this chapter also there will include data about the graduates unemployment statistic by education qualifications and classification of education. The literature review includes the factors that lead to the unemployment in various countries. Under this chapter also there will include the impact of unemployment to economic. Chapter 3 will explain the research question and the theoretical framework to be adapted in this research. Under this chapter also, the methods to collect the primary and secondary data will discussed

Chapter 2
Introduction: The purpose of this chapter is to review the literature on the problems of unemployment among university graduates. In this chapter the factors that responsible for the growing of the unemployment among graduates students also will discuss. Economic theories related to the unemployment and some suggestion also will discuss in this chapter.

Economic theories of unemployment:

Unemployment, the term is bringing a huge impact to economic performance and to social. Unemployment will make the economic growth of the country decline and as well as bring some new kinds of problems to the society which will costly to the government to prevent those problems. The social problems that would be arising from the unemployment will bring greater negative impact to the economic performance and to the government to prevent these problems. According to Keynes theory the need of labor in labor markets is given by the point of intersection between the aggregate demand function and aggregate supply function (Keynes, 1946; p. 25). This was interpreted and construed to imply that a rise in costs and with this the government expenditure will increase. This will result to upward shift of the supply curve and will cause greater unemployment and inflation. The inflation will lead the unemployment continuously rise followed by the price of goods. There are several factors which will lead to inflation and the effect of inflation will be the unemployment. the factor that lead to inflation are Because of the rising power of multinational

companies, the increasing productivity is no longer followed by a commensurate fall in prices (Brenner, 1991). Many people believe that firms have to dismiss employees because of their wages being higher than their marginal productivity. Because of this wages and marginal product the employers will reorganizations and dismissals of workers to save the cost of production. (Thomas Lange), with comparatively low quality goods and non-price competitiveness and inappropriate industrial equipment the productivity will not going to increase and it would be one of the factors to rise in unemployment rate indirectly.

Factors responsible for graduates unemployment Job creation Thomas Lange and Keith Maguire, the unemployment rising because of the creation of new jobs is too expensive and activities can be carried more cheaply elsewhere. The author also stated that the unemployment may also fall disproportionately on certain disadvantaged social groups such as ethnic minorities, regional minorities, the young unskilled and those from poorer social background. Because of all those things the graduated students are not capable to grab the new job creation and as well as the certain disadvantaged. The creation for new job is really very expensive and it will costly to the government and as well as to the industrial. The industrial will offer the new jobs for the workers but with low wages or salary. The result on the unemployment when the new job available with low wages or salary would be the same or more because graduated students will not work with low wages or salary.

Environmental Quality Other than that the quality control also is one of the factors that lead to unemployment. From the report by the Made in America report (MIT) Shown that American manufacturing has also suffered from problems of quality control. When there is a quality control problem the government will not allow the industrial to produce more products until the industrial find or take action to control the environmental quality. This will lead the industrial to produce fewer products which will need fewer employees. This in turn has led to a further loss of competitiveness in a number of high technology sectors of the economy. As a result the economic Gross Domestic Product (GDP) will not increased and its will effect to rising in unemployment rate.

From the UNESCO Bangkok report they find out they is 6 factors which is result to unemployment among graduates students. These 6 factors they identified by doing research and with the help of the participants were they identified the several issues related to graduate unemployment, which were prioritized according to the number of participants expressing their interest in the issues, as follows:

Mismatch of qualifications with employers needs and education qualifications In generally graduates students will apply for any job application that they think they are qualified to get the job. They will not consider the qualification that they employers needs. From the research findings, graduates students generally lack of appropriate skills and knowledge that they should have in the workplace. Furthermore from the findings by the UNESCO Bangkok, the technical and ICT skills learned in schools are outdated and do not match with the technologies that used at the workplace. This indicates a mismatch of skills needed in the real world compared to the knowledge educational institutions are transferring to their students. It has been well documented that changes in the US labor market over recent decades have raised concerns about a mismatch in skills. Over education can be increased by a decrease in the growth of demand for educated labor, by the inability of the educational system to respond to such a decrease in demand (Smith, 1986), or by the growth in supply of the more highly educated outpacing the growth in demand (Groot, 1996).

The second phase of the mismatch lies in the several types of jobs available and needed urgently versus the type of graduates or trainer that being produced. For example marketing graduates find that they are over qualified to work at the low level work like clerk and so on that urgently needed. This type of problem will raise the graduates to be unemployment even tough there is job vacancy. Here I included the graduates unemployment statistic by education qualifications and classification of education.

Bilangan siswazah menganggur mengikut sijil tertinggi di peroleh dan bidang pengajian terpilih, 2004-2006 ('000 ) Bidang pengajian Jumlah Perniagaan dan Pentadbiran Komputer dan teknologi maklumat Kejuruteraan Latihan kemahiran Sains sosial dan sains gelagat Latihan perguruan dan sains pendidikan Kesenian Pendidikan vokasional Lain-lain Jumlah 64.0 18.6 12.8 10.6 4.3 2.3 2.1 1.6 1.6 9.9 2004 Ijaza h 22.7 8.5 3.2 2.6 0.5 1.6 1.2 0.3 0.1 4.8 2005 Diplom a 41.2 10.1 9.6 8.0 3.8 0.7 0.8 1.3 1.5 5.1 Jumlah 63.0 17.8 11.9 10.0 3.0 3.6 1.2 1.3 1.8 12.4 Ijazah 25.3 7.6 3.9 3.2 0.1 2.6 1.0 0.4 0.2 6.3 Diplom a 37.7 10.1 8.0 6.9 2.9 1.0 0.2 0.9 1.6 6.1 Jumlah 65.4 17.4 11.9 11.1 4.4 3.7 1.8 1.5 2.1 11.5 2006 Ijazah 34.4 7.6 7.9 7.1 4.0 0.4 0.6 0.9 1.7 4.2 Diploma 31.0 9.8 4.0 3.9 0.4 3.3 1.2 0.7 0.4 7.4

Punca: Penyiasatan Tenaga Buruh, Jabatan Perangkaan Malaysia

Nota: 1. Adalah diingatkan bahawa data ini hanya boleh digunakan untuk tujuan perancangan dan rujukan sahaja dan bukannya untuk sebaran atau petikan di dalam kertas kerja, penerbitan dan media lain.

Lack of supply and demand information on labor market

The second factor that leads to unemployments is the lack of information on the labor market. Graduate students unemployed because lack into get the appropriate and updated labor market information such as how many job vacancies are available and so on. The second phases in lack of supply and demand information are, there appears to be an inconsistency between labor market demand and supply. Employers saying they cannot find good people to fill vacancies, and yet the graduates unemployment rate is increasing. At the same time the graduates students saying that the employers does not mention what are the needs or qualification that they are needed from the employment.

Lack of proper career guidance and information The major element that lead to unemployments is pointed out by many employers is the unrealistic expectations and demands of young employees, especially given their lack of experience and skills. Because of the lack of skills and experience among graduates students, the employer will not accept the job application that fill out by the employee. The second things are the lack of guidance programmes in secondary schools, universities, and vocational training institutional. Without the follow-up programme interventions throughout their studies students will not aware of career options and opportunities.

Lack of exposure of students to the real world of work

In general, the divide between school and the world of work is imposed upon students by the educational systems, in conformation to policies and pedagogical approaches in each country. Similarly, social and cultural norms play a role in whether young people are exposed to work environments. For example, young people in many western cultures are expected, and have opportunities, to earn extra money by delivering newspapers, mowing the lawn, working in fast food restaurants and factories during their school holidays, and so on, whereas Asian youth, by and large, do not work unless compelled by their families financial situation. Visits to job sites and job placements/training as part of the school curricula can be incorporated into the school curricular or career counseling programmes to expose students to workplace environment and requirements. However, such initiatives are more acceptable and common in vocational and technical institutions compared to the regular formal school programmes,(UNESCO Bangkok).

Lack of soft skills The fifth factor that leads to the unemployments is the lack of soft skills. Educational institutions are stress more on the competencies in the reading, writing and arithmetic and core subject that related to course. Soft skills such as social skills, interpersonal relationships, motivation, critical thinking, communication, creativity, language skills and so on are usually not taught within the formal setting of the school system. However, these attributes are extremely important to employers. This soft skill is the most important aspect that the education institution should produce in their education system. Without these soft skills graduate students are not able to find the job even tough there is job vacancies. There is 3 ways of skills classification which are: 1. Skill heading Definition Key (or core) skills Very general skills needed in almost any job. They include basic literacy and numeric and a range of personal transferable skills, such as the ability to

work well with others, communication skills, self-motivation, the ability to organize one's own work and a basic capability to use information technology 2. Vocational skills Needed in particular occupations or groups of occupations, but are less useful outside of these areas. While they are less general than key skills, they are nonetheless highly transferable between jobs in a given field 3. Job specific skills The usefulness of these is limited to a much narrower field of employment. They are forms of knowledge rather than skills as traditionally defined and could be specific to individual firms.
Source: Department for Education and Employment (DfEE) (1997, pp. 34-5)

Economic issues The last factor that the UNESCO Bangkok identified is the economic issues which lead to unemployment. The economic growth in the Asia and Pacific region has contributed to some imbalances between supply and demand in human resources. The push for a knowledge-based society has seen an increase in the number of tertiary educational institutions and university graduates. The decreasing number of skilled vocational and technical workforce has raised concerns in many countries to this imbalance. Globalization has further opened the door to opportunities and challenges for trade and labor market. In many cases, first degrees are becoming irrelevant in the workplace, and many employment seekers have to relearn and retrain to fit into new job requirements. Three main issues were discussed during the multi-stakeholder meeting:

 Macroeconomic policies, international trade arrangements and multilateral agreements, all of which have an impact on job creation and loss, specific skill needs and so on, normally fall under the jurisdiction of Ministry of Finance and other economic departments with little or no input from the Ministry of Education or Labor. Many countries are undergoing economic transitions, including more involvement in global production chains and increased impact of technology and knowledge capital. There are opportunities for countries to identify specific niches within the global system and this drives job creation and skill needs. All policies will have an impact on jobs and skill needs, for example, intellectual property regimes, environmental protection laws and so on, will affect the types of work and skills required

Effects of economic environmental changes (Atsuko Kanai and Mitsuru Wakabayashi). The economic environmental changes also will lead to the unemployment. This had been proved in Japan nation. In Japan the unemployment rate start increasing in 1994 after the bubble burst war in 1991. Since 1994 until the 2000, the unemployment rate keeps increasing and it has recorded that highest unemployment rate in that year (2000). Because of these effects (bubble burst war, earthquake and so on), its become difficulty for Japanese companies to maintain the characteristic Japanese management style featured by life-long employment and seniority-based HRM systems (Wakabayashi, 2001). These economic environmental will effect the employees to lose their beliefs of the life long employment. Its means that once you working in a big company you will for work for life long.

Labor turnover is costly (Ritter and Taylor, 1997), the employers felt that the cost to train the labors is too high and it will costly for the production cost and as well as need more time to train the new labors. Labor turnover is costly to firms for two reasons. First, the recruitment and selection of new workers can be a time-consuming and expensive process. And second, new workers usually need to accumulate some firm-specific human capital before attaining satisfactory productivity Because of this two reason, the employers are not willing to employee new workers that are not having soft skills and experience in the field that they apply.

Graduates: psychological attributes. INSTITUT PENYELIDIKAN PENDIDIKAN TINGGI NEGARA (IPPTN) has been done one research regarding unemployment to identify the factors that lead to graduates unemployment. This IPPTN also focused is research on the characteristic of unemployment graduates and the steps that should be taken by the higher institutions to overcome this problem. In the research done by the IPPTN, the analysis was made on the graduates psychological attributes. From the research the IPPTN mentioned that there is nineteen categories of positive psychological attributes which are; Initiative, see and grab opportunities courageous, information seeking, emphasis on high quality job performance, commitment to job, efficiency, systematic planning, problems solving skills, self confidence, self assurance, provide confidence in others, use strategic influence, socialization, assertiveness, uphold values, thinking skills, accepting change and self presentation. From the research also they identify that there is three categories of negative psychological attributes which are; anxiety, negative feelings, and depression.

A number of 561 respondents has been used by the IPPTN to completed this research were 275 employed respondent and the remainder 272 is not gainfully employed. according the higher education research (IPPTN) the unemployment respondent showing higher in 12 positive attributes except for category initiative, see and grab opportunities, information seeking, efficiency, thinking skills, accepting change, and self-presentation. Because of this 7 psychological attributes, the graduates students is not able to find job that suit for them. Graduates students must be initiative and must able to seek information in order to get employed. The means for all three negative attribute categories for the unemployed were higher than the working respondents. In one of research about unemployment among female graduates that made in Pune city in India stated that engineering students have a much lesser waiting period to get job and some are getting employed immediately after graduation, but the arts students have to wait for long period to get job. This research is conducted by the Indian institute of education and the person in charge in this research is Naik Path and the cost to do this research is sponsored by the India government itself. In this research the factors that lead to unemployment among female graduates is because female youth largely depend on their parents / guardians / husband for fulfilling their monetary needs and living requirements. Other than that the female graduates unemployment because of nonfulfillment of their expectations in getting employment or suitable Employment, the respondents felt frustrated and disappointed and some of them felt incomplete and incapable in getting job From this research also the Indian Institute of Education find out that the employer felt that it is difficult to employ women as they have to be given maternity leave benefits, creche facilities etc. They cannot be called for the night shift; employers have to take care of women if they are harassed or are in some difficulty and so on. The second important factor leading to large unemployment among women is attitudes. Most parents send their daughters for college education primarily for considerations of marriage, rather than for their intellectual growth or for providing them qualifications for jobs

Female: unemployments and education. In one of research about unemployment among female graduates that made in Pune city in India stated that engineering students have a much lesser waiting period to get job and some are getting employed immediately after graduation, but the arts students have to wait for long period to get job. This research is conducted by the Indian institute of education and the person in charge in this research is Naik Path and the cost to do this research is sponsored by the India government itself. In this research the factors that lead to unemployment among female graduates is because female youth largely depend on their parents / guardians / husband for fulfilling their monetary needs and living requirements. Other than that the female graduates unemployment because of nonfulfillment of their expectations in getting employment or suitable Employment, the respondents felt frustrated and disappointed and some of them felt incomplete and incapable in getting job From this research also the Indian Institute of Education find out that the employer felt that it is difficult to employ women as they have to be given maternity leave benefits, creche facilities etc. They cannot be called for the night shift; employers have to take care of women if they are harassed or are in some difficulty and so on. The second important factor leading to large unemployment among women is attitudes. Most parents send their daughters for college education primarily for considerations of marriage, rather than for their intellectual growth or for providing them qualifications for jobs.