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High Unemployment Rate in Malaysia

explanatory Essay
1822 words
1822 words
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1. INTRODUCTION
The term Unemployment means when the unemployed who are actively and drastically searching for employment but is unable to search for a job. Unemployment measures the health of the current economy. Currently, the most actively cited unemployment is the unemployment rate itself. This equals to the unemployed persons divided by the number of people in the labor force. Unemployment is a fundamental economic factor due to the current cost of unemployment which is high.
Meanwhile, unemployment rates in the current year of Malaysia have been below 3.3 percent, based on recent news. The unemployment rate has fallen to 2.9 percent from 3.5 percent. The unemployment rates in Malaysia have not been stabilized due to the increasing population in Malaysia. However in the past years, 1985, Malaysia’s unemployment rate has reached to about 6.893 percent. The current population stated in Malaysia, 2013 was 29.7 million, (epu.gov.my) due to the increasing population in Malaysia, job or labor rates has become slow. Furthermore, the country`s current crime rates last August 2013, was said to 10.1 percent equivalent to 63,221 thousand cases of crime rates (themalaysianinsider.com). The reason to crime rates increasing during the past years has been due to the worries of poverty, insecurity and under-development, thus crime has become a major worry for the policymakers including Malaysia (UNODC, 2005). In view of Graph Bar 1, are the increasing rates of crime trends from the year of 2007 till 2012.

Unemployment is a requisite economic circumstance because these days the cost of employing is getting higher than usual. The agony established is really bad that an unemployed sole is likely suffering from loss of esteem, depres...

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...Malaysia Graduates: Graduates’Attributes, Lecturers’ Competency and Quality of Education”, Procedia - Social and Behavioral Sciences ,Volume 112, 7 February 2014, Pages 1056–1063, viewed on 8 April 2014,
~ Tang, CF 2009, “The Linkages among Inflation, Unemployment and Crime Rates in Malaysia”, Int. Journal of Economics and Management 3(1): 50 – 61,
~ Gopal, S 2012, Minimum wage effects in Malaysia, viewed on 5 April 2014,
~ Teoh, S 2012, Minimum wage will cause unemployment, inflation, say employers, economists, viewed on 6 April 2014,

In this essay, the author

  • Explains that due to the minimum wage being imposed on the labor markets, many employees are crawling in to grapple for the job.
  • Cites the malaysian economics figures 2013, economic planning unit, prime minister's department.
  • Explains that unemployment is a fundamental economic factor due to the current cost of unemployment which is high.
  • Explains that past research has shown that higher education institutions, the current job market and the needs for the labor force for graduates are different compared to what they had decades ago.
  • Explains why malaysia's crime rates have been increasing due to the lack of unemployment and the democratic freedom that the country has gotten.
  • Explains that with a minimum wage of rm900 per month, the quantity of demand rises and employed is less than the required quantity.
  • Explains that the correlations between unemployment and crime rates are positively related. the government could raise subsidies and reduce tax imposes for people who earn less than rm900.
  • Analyzes how malaysia's rising crime levels are a consequence of its growing economy and democracy.
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