Unemployment among Malaysia’s Youth: Structural Trends and Current Challenges

Abstract

This Perspective, the first of two on the employment situation of Malaysia’s youth, unpacks trends in labour force participation (LFP) and unemployment, providing glimpses into multiple facets of youth entry into the labour market and the outcomes of their quest for career and income. The LFP represents the inclination to work; a rising LFP among teenagers may reflect the choice to leave secondary schooling early or to forego post secondary education. Unemployment indicates the overall vitality of the economy and the disconnects between the labour force and jobs offered; unemployment among the young is typically higher than that for adults, because many are new to the labour market, whereas adults have more experience and networks. Nonetheless, the magnitude of the youth-to adult gap in unemployment, and trends over time, are matters of concern.