CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

This chapter presents the research methodology applied in this study including research

design, unit of analysis, sample size, sampling technique, measurement, data collection and data

analysis.

3.2 Research Design

To achieve the research objective in this study, a cross-sectional study design research by

using questionnaire method will be used in this study. Cross-sectional study will be used because

data collection will be gathered in a particular time and it will answer all the research objectives

(Sekaran, 2003). Furthermore, this quantitative method will be used in this study as this study

relies on primary data from the survey involving fresh graduates in higher institution in Kuala

Lumpur.

3.3 Unit of analysis

A unit of analysis is the entity that you wish to be able to say something about at the end

of your study, probably what you would consider to be the focus of your study. Unit of analysis

also refers to the stage that is the subject of the study (Hazman et.al, 2016. An analytical group is

probably what you would consider to be the main focus of your study, to say something about at

the end of study. The unit of analysis may include individuals (managers, workers etc.),

organisational divisions (marketing sales etc.), organisation, the events and items. Besides, unit
of analysis should be clearly stated by the researcher to ensure the understanding of the readers.

Therefore, it is important to identify unit of analysis in the study.

The study is about the factors that influence high unemployment among fresh graduates

in higher institutions. Thus, researcher focused on the higher learning institution in Kuala

Lumpur. The study will involve Fresh Graduates target respondent. In other words, the unit of

analysis is individual because its only focus on Fresh graduates in higher institution.

Furthermore, researcher also gain information from the secondary data such as journal, books,

articles, internet source and others to help researcher find accurate information.

3.4 Sample size

The sample size refers to the number of participants or comments in a survey. Typically, n

represents this number. The sample size has two statistical characteristics which is the accuracy of

our estimates and the study's ability to draw conclusions. The sample size also refers to the how

many units should be included or contacted by the researcher for the study without seriously

affecting the reliance and validity of the study (Hazman et.al, 2016). The determination of sample

size is affected by several factors which must be considered simultaneously. Factors include cost and

time constraints, variability in the target population, the necessary estimate accuracy and whether the

results will be generalised and, if so, to which level of confidence (Hair et al., 2007). Roscoe (1975)

suggested that for the most research the sample sizes were more than 30 and less than 500.

In this study, the total population of fresh graduates in Kuala Lumpur is 1,000,000

people. Thus, the number of samples proposed as suggested by Krejcie and Morgan (1970) is

384 people. Table 3.1 shows the formula for calculating the number of samples used by Krejcie

and Morgan (1970).

 Table 3.1

Formula for determining sample size. S = X2NP(1-P) ÷ d2(N-1) + X2P(1-P)

s: Required Sample Size
X2: The table value of chi-square for 1 degree of freedom at the desired confidence
level (3.841)
N: The population size
P: The population proportion (assumed to be 0.50 since this would provide the
maximum sample size)
d: The degree of accuracy expressed as a proportion (0.05)

3.5 Sampling technique

Sampling refers to the process of selecting a sample a subset of people related from a

statistical population to estimate the population's characteristics. The cost is reduced, and the

accuracy and quality of the data may be easily enhanced, which are the two key advantages of

sampling. When using probability sampling, every item in the population has an equal chance of

being included in the sample. A researcher could use a random number generating computer

programme to select a sample from the sampling frame after first constructing a sampling frame

(Zikmund, 2002). For a given degree of sampling error, probability or random sampling offers

the most freedom from bias. Still, it may also be the costliest sample in terms of time and energy.

According to Sekaran (2003), the reason of using this technique is because it involves few

hundreds until thousands of units. Therefore, the probability sampling that will be used in this

study is stratified random sampling.

 After the study of all of the sampling techniques, the Simple Random Sampling (SRS) is

the most suitable techniques because the population of the study is large. Simple random

sampling is a sampling method in which each unique combination of sample units from the

population has the same chance of being chosen. Simple random sampling is the simplest form

of sampling and the basis for many additional sampling methods, according to theoretical

considerations. Throughout forest locations where accessibility is poor, and the costs of travel

and plot location are significantly higher than the cost of enumerating the plot, the irregular

distribution of sample units in the forest area in simple random sampling may be a significant

disadvantage (Macášek, F. 2008). In this study, researcher will collect 1 000 000 data population

in Kuala Lumpur. The data will be collected from fresh graduates in Kuala Lumpur. The number

of samples that is going to be taken is 384 sample. The data will be collected randomly in Kuala

Lumpur area.

3.6 Measurement/Instrument

Measurement is assignment of a number or other symbols to characteristics (or attributes) of

objective according to a personified set of rules (Sekaran & Bougie, 2009). It is the process of

observing and recording the findings collected in a research effort. Measurement means

numerical description of the data of the accuracy, an objectivity and communication. The four

distinct measurement levels were clearly defined by Stevens (1946). Nominal, ordinal, interval,

or ratio are all levels.

This study determines main determinants which are, lack of skill, Mismatching, foreign worker

and Current Pancemic Covid-19 in factors influencing high unemployment among fresh

graduates in higher institution in Kuala Lumpur. To retrieve their feedback, a set of

questionnaires will be designed based on variables used in this study.

Questionnaires is instrument consisting of a series of questions and other prompts for gathering

information from the respondents. The purpose is to obtain information from the respondents.

For this study, the questionnaire will be developed in bilingual, cover both Malay and English

language. The proposed questionnaire sections as follows:

1. Section A: Respondent’s Information

2. Section B: Influencing high unemployment among fresh graduates in higher institution
3. Section C: Lack of soft skill
4. Section D: Mismatching
5. Section E: Foreign Work
6. Section F: Pandemic Covid-19

3.6.1 Influencing high unemployment among fresh graduates in higher institution

In Malaysia, the unemployment problem has been a very observable phenomenon. In Malaysia,

the unemployment rate is at 3.5% in March 2016 compared to 3.4% in the previous three months

(Department of Statistics, 2016). According to the Department of Statistics (2016), in December,

the number of unemployed rose to 478,100 compared to 453,300 in the earlier month.

Furthermore, last year the unemployed is totalled of 432,100 (Najib, 2016) and the labour force

participation rate came in at 67.8% in December, up from 67.7 % in November (Najib, 2016).

According to the (Aina, 2017) reported that the World Bank said a high percent of jobless youth

contributes to the overall unemployment in Malaysia. It includes the fresh graduates. In addition,

the News Strait Times stated the Ministry of Higher Education said, a quarter of all graduates in

2012 have not obtained employment at the time of graduation, and the World Bank finds that in

2012 almost 1/5 degree holders below the age of 25 were unemployed. Unfortunately, a large

portion of the unemployed graduates are from the study field of Social Science, Business and
Law with 39.4 %, followed by Engineering, Manufacturing and Construction with 21.7 % and

Science, Mathematics and Computing with 17.9 % (Razak et al., 2014). So, this displays that

there is an unemployment problem among fresh graduates in Malaysia that need to be addressed

Influencing high unemployment among fresh graduates in higher institution

I know the meaning of unemployment

Saya tahu maksud pengangguran
I know the issue of unemployment in Malaysia
Saya mengetahui isu pengangguran di Malaysia
I know the issue of Unemployment among Graduates
Saya mengikuti isu Pengangguran dalam kalangan Siswazah di institusi tinggi
I know the majority of the unemployed are among graduates
Saya tahu majoriti penggangur adalah dalam kalangan siswazah
I was unemployed for over 3 months
Saya pernah menganggur selama lebih 3 bulan
I believe there are several factors that influence unemployment among graduates in higher
institutes
Saya percaya terdapat beberapa faktor yang mempengaruhi pengangguran dalam kalangan siswazah di
institut tinggi

3.6.2 Lack of soft Skill

A notable number of Malaysian employers have a negative perception towards the graduates and

have stated that the graduates lack the suitable skills and qualifications which require by the

industry. Moreover, the graduates fail to demonstrate a good working performance and they are

poor in the aspect of employability skills. In addition, Hanapi and Nordin (2013) stated in 2002

Central Bank of Malaysia conducted a study and concluded that the international graduates have

higher employability compared to the Malaysian graduates in terms of the skills which include

but not limited to technical skills, problem-solving skills, communication skills, particularly in

the English language. The previous research has discovered that fresh graduates are lack of

employability skills, poor understanding of the English language and communication skill and
also there are too choosy about the job and at the same time they are demanding for a higher

salary is the major cause of unemployment among fresh graduates (Zahiid, 2015). The Graduate

Tracer Study is maintained by the Ministry of Education. It keeps track the standing of the

students of higher educational bodies six months after graduation to determine if they are

working or continuing their studies, or still looking for employment. Remarks are pulled together

from public and private universities and other institutions. In 2015, among 273,373 graduates,

Bachelor’s Degree and Diploma, 45% and 43% of all graduates, correspondingly. Among them,

53% were reported employed, 18% decided to pursue higher studies, and 24% of graduates were

still unemployed. Amongst graduates of all qualifications, Bachelor’s degree-holders are the

most without a job (at 27.9%). Studies show evidence pointing to a multitude of reasons,

including the keenness of graduates for the world of work, insufficient job creation for some

fields, and the lasting implications of socioeconomic backgrounds on learning and social

progression.

Lack Of Soft Skill

I don't have the relevant working skills
Saya tidak mempunyai kemahiran bekerja yang relevan
I have poor command in English language
Saya kurang mahir dalam bahasa Inggeris
I have poor communication skills
Saya Kurang mahir dalam kemahiran komunikasi
I am lacking of problem solving skills
Saya kurang mahir dalam menyelesaikan masalah
I am unable to work in a team (group)
Saya kurang mahir kerja dalam berkumpulan.
I am lacking of leadership qualities
Saya kekurangan kualiti kepimpinan

3.6.3 Mismatching

Earlier economic researches have put more emphasis on formal unemployment, which derives

from regular mismatching between existing jobs and workers based on job mobility and wage
bargaining cost (Herz & Van Rens, 2011).The market requires different sizes of labour forces to

meet social needs and internal requirements. Graduates who have different majors want to get a

job at same time, their job searching can have different outcomes depending on the demands of

the market. Graduates completing education on the departments of Sciences, Literature and

Social Sciences have a tendency to show higher degrees of joblessness. Securing a job depends

not only on their academic performances, but also on personal background. There is also a

certain role of race, gender and socioeconomic condition in hiring an applicant (Morley, 2001).

Graduates from lower-income families also show higher unemployment rates (by household

income brackets). This observation holds true across qualifications. According to a survey done

by the employment agency Jobstreet.com stated that, from the employer’s perception, the fresh

graduates being an unrealistic request for income above RM 3,500 for their first job. On the other

hand, the normal wages offered to fresh graduates are around RM 2,100 to RM 2,500, depending

on their academic qualification.

Mismatching
I am too choosy about the position offered by an organization
Saya terlalu memilih kedudukan yang ditawarkan oleh organisasi
There are no appropriate or relevant jobs on offer
Tidak ada pekerjaan yang sesuai atau relevan yang ditawarkan
The job that offered are irrelevant to my qualification
Pekerjaan yang ditawarkan tidak berkaitan dengan kelayakan saya
Is there imbalance between skill demand and skill supply in the economy
Adakah kerana kemahiran yang terlalu tinggi, saya sukar mendapatkan pekerjaan
Is it because of there are too many skills that required in the market
Adakah terdapat ketidakseimbangan antara permintaan kemahiran dan penawaran kemahiran
dalam ekonomi
Is it because of overqualified skills, I find difficult to obtain a job
Adakah kerana terlalu banyak kemahiran yang diperlukan di pasaran
3.6.4 Foreign Worker

Another factor contributes to the unemployment rate in Malaysia is the foreign workers as

competitors for the local graduates. In Malaysia, there is a huge demand for the skilled jobs and

the foreign workers are brought in to fill the required jobs. There are more than 1.7 million

foreign worker in Malaysia as of 30 June ,2017 (Aina,2017) .Most of them from Indonesia,

Bangladesh, Nepal, Myanmar, India etc. Locals graduates are finding difficulty to enter in the

workforce.

Is the presence of foreigners in our country increase unemployment rate?

Adakah kemasukan warga asing meningkatkan kadar pengangguran?

Is the payment of salaries to local workers and foreign workers is different?

Adakah pembayaran gaji kepada pekerja tempatan dan pekerja asing berbeza?

Is the treatment given by the employer to local workers and foreign workers is different?
Adakah layanan yang diberikan oleh majikan kepada pekerja tempatan dan
pekerja asing berbeza?

Is it true that foreign workers are not choosy in caring out the type of work compared to local
workers? Adakah benar pekerja asing tidak memilih dalam menjalankan sebarang
pekerjaan berbanding pekerja tempatan?

Does the foreign workers are more discipline than local workers?
Adakah pekerja asing lebih berdisiplin berbanding pekerja tempatan?

Does the local workers are more concern about welfare compared to
foreign workers?
Adakah pekerja tempatan lebih mementingkan kebajikan berbanding
pekerja asing?

Foreign Worker

3.6.5 Pandemic Covid-19

The issue of graduate unemployment is skyrocketing in many countries. It signals fundamental

flaws in the economic transitions, even before the COVID-19 pandemic took place. For instance,

the OECD reported that 25 percent of the graduates in England and North Ireland were employed

at a lower level of education (MacDonald & Giazitzoglu, 2019). Similar cases happen in

Malaysia, in which more than 50 percent of the graduates from public universities earn income

less than what is expected for bachelor’s degree students (Seng, 2018). In implies that these

graduates were employed at a lower level. It is a waste for a nation since the talents are not being

fully utilized up to the maximum capacity. This issue is further enlightened when the COVID-19

pandemic hit the world in the early quarter of 2020. Due to the movement control order, some

firms have difficulties in paying their workers’ salaries. It results in a retrenchment of workers to

minimize operational costs. There are also cases of freezing new hiring. Hence, this pandemic

worsened the economic situation. The rates of graduate underemployment and graduate

unemployment are rising (D’Silva, 2020). As mentioned in the Graduate Tracer Study report,

nearly 60 percent of the graduates in Malaysia remain unemployed even after one year of the

graduation period. The percentage is expected to increase in the near future due to the pandemic.

Nevertheless, there is a huge opportunity that lies in every crisis. Due to the COVID-19

pandemic, the interest in the gig economy is booming. Thousands of jobs are available in the gig

platforms, which connect freelancers and employers worldwide. Thus, various initiatives have

been provided by the government to support the growth of the gig economy. For example, RM2

billion have been allocated for upskilling and training (Babulal, 2020). If the graduates did not

take the opportunities to improve their skills and knowledge, it is such a meaningless initiative.

Apart from the training supported by the Malaysian government, there are other online platforms

for graduates to learn and upgrade themselves, such as Coursera, EdX, Udacity and Saylor
Academy. Those platforms are easily accessible by anyone who wants to enhance their skills and

knowledge at a free or minimal cost.

Pandemic Covid-19
Saya Kehilangan Kerja disebabkan pandemic Covid-19
Saya kehilangan pendapatan disebabkan Pandemik Covid-19

Saya percaya Pandemik Covid 19 memberi impak yang besar kepada semua siswazah yang

ingin mencari peluang pekerjaan

3.7 Data collection

According to Kabir and Syed Muhammad (2006), data collection manages the topic of how the

researcher will contact and assemble the necessary information from the elements of the study.

Data collection is the process of gathering and measuring information on variables of interest, in

an established systematic fashion that enables one to answer stated research questions, test

hypotheses, and evaluate outcomes.

Research data will be obtained through surveys where questionnaires will be distributed to

respondents virtually. The questionnaire will be made in the Google Form platform and the URL

link of the questionnaire will be distributed to the respondents. The cover letter is attached to the

questionnaire stating that the respondent must answer all the questions in the questionnaire and

be given time to answer. Afterwards, respondents sent their responses to the researcher. The

questionnaire is available in two languages, namely Malay and English to help them answer the

questionnaire. In the cover letter attached, notice is given that the information provided in the

questionnaire is confidential and is only used for academic purposes only.

3.8 Data analysis

According to Sekaran (2003), data analysis has three objectives: obtaining data, testing relevance

of data, and testing research hypotheses. Data analysis will give an initial idea of how well the

scale, how well encoding and entering the data has been done, and so on. The second objective is

to test the relevance of the data where it sends data for factor analysis, obtaining Cron-bach alpha

or split-half reliability of the measures, and so on. Hypothesis testing is selecting the appropriate

menu from the software program, to test each hypothesis using relevant statistical tests.

For this study, Statistical Package Social Science (SPSS) software was used to analyze all the

data obtained from the survey made. This software will convert raw data into information that

gives an overview of the study factors and it is done through data entry and data adjusting. The

analyzes used for this study were Descriptive Statistics, Pearson Correlation and Multiple

Regression. The table below shows the statistical techniques used in data analysis to test the

research objectives.