MALAYSIA PUBLIC UNIVERSITIES' GRADUATE EMPLOYABILITY POLICIES: AN ANALYSIS OF FIRST DEGREE GRADUATES UNEMPLOYMENT AND UNDEREMPLOYMENT ISSUES

Abstract The graduate unemployment and underemployment issues that have given rise to many policy implications for higher education in many developing countries such as Malaysia. Among the youths in the workforce, the percentage of those unemployed is higher among those with a tertiary education compared to the ones without a tertiary education. In 2015, of the 405,000 youths with tertiary education, 15.3% were unemployed. In the context of first degree graduates in Malaysia, there were 27.9% unemployed in 2015, and 26.3% in 2016. In Public Universities, there were 28.9% first degree graduates unemployed in 2015, and 25.6% in 2016. It is also study what are recommendations can be suggested to Malaysia government in order to improve graduates’ employability. There are factors to be examined and discussed before recommendations put up from the point of view of employers as industry players to provide jobs and opportunities for graduates. The literature on graduates’ employability can be integrated in a conceptual model: (1) graduates’ factors, (2) demand supply factors, and (3) employer factors. Based on literature review on the incident, duration and determinants and discussion on some yearly statistics of graduates’ unemployment problems in Malaysia, there are some recommendations from the perspective of a manager of an employer for Malaysian government as the suitable policies to address the graduate unemployment, in the short run and long run: (A) For government policies, (1) Launch a particular financing call to kick-begin activities, (2) Share best practice and standards resources, (3) Position employability skills as a driver of quality, (4) Standardize the process for placements and work experience, and (5) Support the transition between second level and third level. (B) From employers to support government policies, (1) Provide work placements and work-related projects, (2) Advise on curriculum design and delivery, and (3) Contribute the business perspective in career clinics to help prepare students for the future