The School-to-Work Transition of Young Malaysians - Date: 12 December 2018 Venue: Mercu UEM, KL Sentral
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
The School-to-Work Transition of
Young Malaysians
Date: 12 December 2018
Venue: Mercu UEM, KL Sentral
SWTS
key findings
Khazanah Research Institute
Youth education and training
for employability
Khazanah Research Institute+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
1. Qualification and skill mismatches
Education not equipping youth with skills employers are looking for
Skills ranked most important by employers
60 %
50
50
40
30
31
20 27
10
0
Soft skills Work experience Hard skills
Source: KRI (2018)
▪ Malaysian education and training institutions emphasize academic and
professional qualifications but employers are looking for soft skills and
work experience
▪ Lack of emphasis on lifelong learning to adapt to the rapidly changing
nature and world of work 4+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
1. Policy implications and options
To address skills mismatches
• Promote teaching of soft skills, including ‘learning to
1 learn’ skills
• Emphasize work-based learning to better match the
2 supply of and demand for skills
• Incentivise employers to provide work-based
3 learning, with particular attention to support for SMEs
Widely publicise and support use of the Critical
4 Occupations List to identify & more effectively address
skills shortages
• Adopt a forward-looking approach to anticipate and
5 match skill needs
5+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
2. TVET not a popular education pathway
TVET emphasized in Education Blueprints but low participation
Youth in upper secondary education Youth in tertiary education
Public Universities 38
7% Private Universities 29
National secondary,
fully residential and 12% Colleges 13
form 6
Polytechnics 9
Technical and
vocational schools 13% University Colleges 6
Matriculations Colleges 2
National religious
secondary schools 68% Community Colleges 2
Overseas Colleges Branches 2
International/private
schools Institutes for Teachers… 1
0 % 20 40
Source: KRI (2018) Source: KRI (2018)
▪ Only 13% of all upper secondary students are pursuing TVET courses;
while at higher education level less than 9% are in polytechnics
▪ Yet those already in the labour market identify TVET as the most useful
qualification for getting a ‘good job’
▪ Wage differential between TVET holders and other types of graduates 6+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
2. Policy implications and options
To improve TVET
Overhaul the current TVET system to:
o ensure strategic coordination among large number of
training providers,
o prioritize demand-driven approach with close industry
1 involvement,
o establish reliable competency standards and
qualifications framework, and
o raise the status of TVET qualifications
Promote competency-based education and training
2 using short modular courses directly linked to specific skill
needs
Evaluate the applicability of the German dual
3 training system to the Malaysian context
7+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
3. STEM education is still lacking
Take-up rate of science subjects and STEM courses unsatisfactory
STEM subjects enrolled by upper Main field of study of tertiary students
secondary students
100%
3 Enrolled
Social sciences, business… 42
90 Health and welfare 8
30
80 37 37
44 Arts and humanities 7
70
Education 4
60
Services 4
50 97
Agriculture and veterinary 4
40 Not
70
30 63 63 enrolled Engineering,… 16
56
20 Science, mathematics and… 9
10 Information technology 4
0
Biology Chemistry Physics Additional Computer
Biotechnology 2
mathematics science
Source: KRI (2018)
0% 10 20 30 40 50
Source: KRI (2018)
▪ Only about a third of all students at upper secondary and tertiary levels are
enrolled for STEM related subjects
▪ The government’s 60:40% target ratio for science to arts students has
yet to be achieved 8+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
3. Policy implications and options
To promote STEM
Make STEM more attractive and widely available
1 from a young age, including through setting up ‘maker
spaces’
2 Adequately equip teachers and students for STEM
Integrate STEM subjects with the Arts (STEAM) to
3 raise students’ interest in and understanding of science and
its application
9+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
4. Youth lack entrepreneurship skills
Entrepreneurship not viewed as a pathway from school-to-work
Skills considered most useful for getting Preferred types of work
a good job 40 %
30 % Starting a business Starting a business
Entrepreneurship 35
25
30
20
25
15
20
10
15
5
10
0
Upper-secondary Tertiary Job Young 5
youth education youth seekers workers
0
Upper-secondary Tertiary Job Young
Communication skills Creative and analytical thinking youth education youth seekers workers
Being honest and hardworking Organisational adaptability Work for the government/public sector Work for a large international company
English language proficiency Ability to get along with people Start your own business Work for a large private company
Knowledge of the business world Teamwork skills Do not care, any job offered Not sure
Entrepreneurship Other Other
Source: KRI (2018) Source: KRI (2018)
▪ Youth are not aware of importance of entrepreneurship skills, whether
to start and sustain their own business or to succeed in the gig economy
▪ Starting a business is not a popular option, except for those already working
10+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
4. Policy implications and options
To encourage entrepreneurial behaviour
Provide courses that develop entrepreneurial
qualities, including business acumen, initiative,
1 innovation, creativity and risk-taking among youth
Promote sustainable businesses - combine training
with access to funding, information and markets,
2 mentoring support, business development services and
conducive regulations
Take into account the specific constraints that
3 youth face in establishing sustainable businesses
Ensure that services offered by SME Corp. and other
4 government agencies pro-actively reach young people
11Their job search process Khazanah Research Institute
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
5. Mismatch of job search and recruitment methods
Mismatch between how young people look for jobs and how employers recruit workers
Most used job search and recruitment methods
Job seekers Young workers Employers
Public Apply directly to
1 employment Online
employers advertisements
service
2 Attend job fairs, Assistance of Relatives/friends of
open interviews relatives/friends employees
3 Employability Answer Relatives/friends of
training course advertisements employers
4 Answer Public employment Print advertisements
advertisements service
Directly Agent/labour
5 Apply directly to approached by
employers contractors
employer
Employability Educational
6 Assistance of training
relatives/friends institution
programme Source: KRI (2018)
▪ Youth register at public employment services and attend job fairs or open interviews
▪ But employers rely on online advertisements, followed by informal networks of relatives
and friends
▪ The mismatch of job search and recruitment methods affects the smooth functioning of the
labour market 13+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
5. Policy implications and options
To address the mismatch between job search and recruitment methods
Enhance the role of employment services, both
1 public and private
Ensure that employment services are available
2 where they are most needed, particularly in rural
areas
Strengthen the outreach of employment services by
3 integrating with other local service providers (one-stop
centres)
Make greater use of digital technology to facilitate
4 job search and job matching processes
14+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
6. Youth want migrant and expatriate jobs
Youth consider foreign workers as competitors for job opportunities
Whether migrants and expatriate workers are a threat to job opportunities
Migrants Expatriates
100%
7 8 9 9 8 11 11 11 Do not know
90
80 21 21 Not sure
27 23 24
30 25 26
70 No, do not want
60 23 14 the jobs they are
36 23 15 15 doing
24 13
50
40
30
54
Yes, compete for
48 45 47 49 47
20 36 41 same types of job
10
0
Upper- Tertiary Job Young Upper- Tertiary Job Young
secondary education seekers workers secondary education seekers workers
youth youth youth youth
Source: KRI (2018)
▪ The different youth groups feel that both low-skilled migrant and high-skilled
expatriate workers threaten their job opportunities
▪ They clearly want expatriate jobs
▪ When they do not want the migrant jobs, it is because these are ‘3D’ jobs offering too low
pay, particularly when they can get higher wages from doing such jobs in Singapore 15+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
6. Policy implications and options
To address the competition posed by foreign workers
1 Review Malaysia’s cheap labour policy
The review should aim to improve jobs and incomes
2 for young Malaysians and reduce the lure of ‘3D’ jobs in
Singapore
The review should also address the impact and
3 implications of a cheap labour policy on the country’s
productivity and growth
16Their employment status
and working conditions
Khazanah Research Institute+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
7. Youth are going into informal and
‘non-standard’ employment
More opportunities but often poor quality of jobs
Job opportunities linked to the internet Status in employment by age of young
workers
100% 5 6 9 Self-employment
100 %
15
90%
90 16 20 18 Do not know
80% 20 Non-standard
80 32
13
19
17 Less job 45 Employment
70 16 70%
opportunities
60 60%
50
50%
40 More job Regular
71
30 64 63 68 opportunities 40% 71 employment
20 30% 62
50
10 20%
0
10%
Upper- Tertiary Job Young
secondary education seekers workers 0%
youth youth 15 - 19 years 20 - 24 years 25 - 29 years
Source: KRI (2018)
Source: KRI (2018)
▪ Youth optimistic about internet and digital economy job opportunities
▪ Increasing freelance opportunities in the gig economy but work unstable and
insecure and with limited labour and social protection
▪ Informal own-account workers and contributing family workers have poor
earnings, low productivity and often difficult working conditions 18+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
7. Policy implications and options
To improve the status and protection of ‘non-standard’ workers
Establish portable social security benefits by linking
1 directly to the worker rather than an employer
Review labour legislation to improve status &
2 coverage of workers in informal, non-standard
employment
Provide support for youth in internet-related work
3 and the digital economy
Encourage young workers to organise for a
4 collective voice to more effectively dialogue with
employers, clients & the government & to improve access to
assets & supports
19+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
8. Youth are not ‘choosy’ about jobs
Notion that youth are selective about jobs is a myth
Young workers by skill group and
Important job characteristics for youth
education 30 %
100%
8
High income
Over-educated 25
90%
37 20
80%
50 32
Under-educated 15
70%
60% 3 10
50% 95
1 5
40%
0
30% 60 60 Matching Upper-secondary Tertiary Job Young
48 youth education youth seekers workers
qualifications
20%
Having work-life balance Steady job/job security
10%
Interesting job to do High income
3 2
0% Job that uses skills and abilities Good promotion prospects/
Unskilled Skilled Low-skilled High-skilled clear career path
manual non-manual non-manual Others
Source: KRI (2018) Source: KRI (2018)
▪ Youth cannot be considered ‘choosy’ when most in unskilled and low-skilled jobs are
‘over-educated’; their current jobs are not related to their level or field of
education; and their actual jobs are not their preferred jobs
▪ High income ranks fourth in youth list of most important job characteristic 20+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
8. Policy implications and options
To correct the misperception that youth are ‘choosy’ about jobs
Strengthen the labour market information system
1 to better connect employers and young people
Improve career guidance and job search
2 counselling and review the relevance of current
psychometric tests
Attract and retain workers and talents by promoting
3 work-life balance and making job prospects
interesting, rather than just focusing on wages
21+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
9. Youth are not ‘asking for too much’
Notion that youth ask for ‘unrealistic’ wages is a myth
Mean of reservation and Mean of salary range offered by
actual wage (RM) employers for new hires (RM)
RM
Tertiary students 3,000
2,435 2,809
Minimum 2,682
Job seekers
1,715
2,500 Maximum
Young employer 3,190
1,641
1,319 2,066
Part-time
1,514 2,000
1,550 1,703
Contributing family worker 1,628
1,598 1,529
Actual wage
Own account 2,378 1,500
1,669 Reservation wage 1,270
Casual/on-call/daily paid 1,621 1,024
1,387 1,000
Temporary full time 1,486
1,471
Regular full time 1,961 500
1,577
Young workers 1,846
1,555
0
RM 0 1,000 2,000 3,000 4,000 School TVET Undergraduates Postgraduates
leavers graduates
Source: KRI (2018) Source: KRI (2018)
▪ The SWTS data do not support the notion that young people have ‘unrealistic’
wage expectations and are ‘asking for too much’
▪ Many young people, particularly those in part-time and contributing family work, earn
below their reservation wage so as to have jobs 22+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
9. Policy implications and options
To address the issue of wages
Urgently conduct a review of wage levels and
1 differentials
Such a review could consider how the minimum wage is
2 being fixed in the country
The review could also consider the likely desirability of
3 establishing a living, fair and decent wage and not
just a minimum wage
23+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
10. Inequalities persist among youth
Even among the youth education and employment outcomes differ
Gender Parity Index for upper secondary Labour Force Participation Rate by
and tertiary education youth age group and sex, 2017
2.0 1.66 100%
1.6 1.35
1.2 90
0.8 80
0.4
70
0.0
Upper secondary Tertiary education 60 2017 Male
Source: KRI (2018) 50
40
Unemployment rate by age group and
30
30% ethnicity, 2017 Bumiputera 2017
2526 20 Female
Chinese
25 10
Indian
19 19
20 Others 0
15 - 19
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
15
13 14 Overall
15 13 12
10 8 8 8 7
5 5 5 Source: DOS (2018-a, Table C1.2)
3 4 4
5 2
0
15 - 19 20 - 24 25 - 29 Overall
Source: DOS (2018-a, Table A5.1)
▪ Girls outnumber and outperform boys but have lower labour force
participation and higher unemployment
▪ Ethnic and rural urban differentials persist; and those from poor family backgrounds
are disadvantaged in education and employment outcomes 24+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
10. Policy implications and options
To address inequalities among youth
Gender-sensitive Active Labour Market Policies can
1 effectively target disadvantaged or vulnerable groups
Preventive and integration strategies can target
those who are at risk of dropping out of school or face
2 problems integrating or re-integrating into the education
system or labour market
25Employers and their
demand for young workers
Khazanah Research Institute+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS
11. Employers play a limited role in enhancing youth
employability
It is not just education and training institutions that are responsible
Training budget by size of enterprise Advice to education/training institutions
on skills requirements
100 %
100%
90
30 90
80 39 No annual
training 80 38
70 63 budget 53
74 70
60 78
60 75 No
87 84
50
50
40
40
70
30 61 62
30
Have an 47
20 37 20
annual
22 26 25
10 training 10 Yes
13 16
budget
0 0
Large Medium Small Micro Overall Large Medium Small Micro Overall
Source: KRI (2018) Source: KRI (2018)
▪ Almost three-quarters of all enterprises do not have training budgets
▪ Participation in employability training programmes is very low
▪ Employers have limited interaction with education/training
institutions, and with youth, except through work-based training
27+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
11. Policy implications and options
To enhance the role of employers in promoting employability
Encourage employers’ organizations and chambers
of commerce to make the business case to their
1 members on why it is important to promote youth
employability
Strengthen the interactions between employers and
2 education and training institutions
Educate both sides, employers and youth, about each
3 other to address current misperceptions
4 Encourage and support youth entrepreneurship
28+THE SCHOOL TO WORK TRANSITION OF YOUNG MALAYSIANS
Summary
Youth Labour Supply vs. Demand
SUPPLY DEMAND
Youths in labour force recognise importance Malaysian education emphasize academic &
of TVET, but participation is still low professional qualifications but employers are
looking for soft skills and work experience
Low take-up rate of STEM and Sciences
Youth are unaware of the importance of Mismatch of channels for job search and
entrepreneurship skills recruitment methods affects the smooth
Youth want expat & migrant jobs, except if functioning of the labour market
they are low-paying ‘3D’-type jobs
Employers think youth want high income,
Youth cannot be considered ‘choosy’ as most
while youth prioritise job security and work-life
in unskilled/low-skilled jobs are ‘over-educated’
balance as most important job characteristic
Youths are not ‘asking for too much’; some
are earning below reservation wage as to have Employers have limited training budgets and
jobs low participation in employability training
Increasing freelance opportunities in the programmes
gig economy but work is unstable and insecure
with limited labour and social protection Employers have little interaction with
educational institutions or with youth,
Inequality in educational and employment except for work-based training
outcomes still persist
29Thank you
Khazanah Research Institute
Lim Lin Lean
Junaidi Mansor
Mohd Amirul Rafiq
Nur ThurayaYou can also read
