SCHOOL OF BUSINESS AND SOCIAL SCIENCES

ACADEMIC SESSION 2022/2023

SEMESTER 1

COURSE CODE : BBC 1182

COURSE NAME : PROBLEM SOLVING AND SCIENTIFIC THINKING
EVALUATION : CASE STUDY REPORT
LECTURER’S NAME : MR AZNI ABDUL RASHID

MARKS
Anas Ali Hussein Hussein Al Hedemah
Azlinashalini binti Abdullah
NAME Ifa Nareesha binti Yusri
Sanda Mariama
Wan Atikah
AIU21102248
AIU22102084
STUDENT ID AIU22102059
AIU22102003
AIU22102065
TOTAL MARKS

DATE SUBMITTED: 14th January 2023

1
 Table of Content

Introduction 3

1.1 Background 3

1.2 Problem statement 7

1.3 Objectives of study 7

1.4 Research questions and hypotheses 8

Literature Review 8

Methodology 10

3.1 Design 10

3.2 Sample 11

3.3 Instrument 11

3.4 Procedures 11

Data analysis 11

Conclusion 28

References 30

Appendices 33

2
 THE EFFECTS OF UNEMPLOYMENT AMONG
FRESH GRADUATES IN MALAYSIA

Introduction

1.1 Background

A university is a higher learning institution where students gain new knowledge and
skills which can help the development of the country. Students are regarded as skilled
individuals with the high level of competence required for the transition to a knowledge-based
economy. However, university education expectations have evolved over the years. The
university’s responsibilities are no longer limited to imparting knowledge and skills, it must
also ensure that students can find work that matches their qualifications after graduation.
Universities should produce work-ready students who can put their skills to use in the
workplace. According to West (2000), higher education and employment are inextricably
linked because people hope to improve their future career opportunities by pursuing higher
education.

A university degree used to be very important and was a guarantee of a lucrative and
secure career. Unfortunately, for recently unemployed graduates, this is no longer the case.
Following economic growth that does not produce good and sufficient job opportunities in
addition to the increase in the number of new graduates globally, the retention of fresh
graduates in the workplace is a new issue that draws the attention of researchers worldwide
(Serhan et al., 2016). Unemployment among fresh graduates is Malaysia’s most pressing
problem because they are facing difficulties in finding work and integrating into the workforce.
Fresh graduate unemployment is caused by structural issues such as market conditions, the use
of foreign workers, and job mismatches. These issues have weakened the labour market in
recent years, and the impending recession makes them worse.

3
 The Malaysian Labour Force Survey classified unemployment into two that is actively
unemployed and inactively unemployed. The actively unemployed include all persons who did
not work during the reference week but were available for work and actively looking for work
during the reference week. According to the estimation, there are roughly 6 out of 10
unemployed people under the age of 24. Every year, more than 250, 000 students graduate, but
only one in five of them find employment within six months of their graduation. This
demonstrates that fresh graduates today had a harder time finding employment (Abel et al.,
2014). Because of the loss of human resources, fresh graduate unemployment is a major
concern for the nation. The significant investment that the government makes in public
universities yields a poor return due to fresh graduate unemployment.

Malaysia’s unemployment rate increased from 3.43% in 1999 to 4.5% in 2021.

Malaysians are growing more concerned about the issue of rising graduate unemployment as
the country experiences rapid economic growth (Bagayah & Smith, 2005). Fresh graduates in
Malaysia are currently jobless because they are unable to secure employment despite actively
seeking employment. Thus, the higher education industry develops the skilled labour force
required to carry out research and development (R&D) projects and create the basis for
sustainable growth.

Even though there are high expectations for higher education to produce qualified
graduates who can meet the needs of the labour market, there is still a “graduate skills gap” in
meeting those demands (Aziz et al., 2019). To better understand the relationship between
graduate capabilities and employer expectations in today’s dynamic business environment, the
Student Employer Institute conducted a study in 2018. Worldwide responses from 16, 000
students and 11, 000 employers were gathered for the study. According to the study’s findings,
there is a “large and consistent gap” between employers’ expectations and the actual talent that
students possess. This demonstrates that university curricula may not be successful in providing
graduates with the necessary skills. The mismatch between graduates’ aspirations and the
employment opportunities available to them leads to educational unemployment (Hancock et
al., 2013). This shows that education and training do not provide the skills demanded in the
labour market or that the economy does not create jobs that correspond to the skills of
individuals.

Unemployment is a growing issue, particularly in third-world nations where people

struggle to find employment. Higher education initially has an impact on reducing the difficulty

4
of finding a job that matches the graduate’s qualifications. But in the current challenging era
of globalization, academic success is no longer a guarantee that fresh graduates will find
employment (Azina & Ismail, 2011). Graduates only have the benefit of academic credentials,
but this does not guarantee that they will find employment if they are unable to handle the tasks
assigned by the employer. Malaysian graduates’ quality level deviates significantly from
international standards. Therefore, this problem needs to be resolved if our nation is to produce
graduates who are talented, adaptable, and marketable.

The tight competition between fresh graduates makes many employers believe that
recent graduates lack three important competencies: critical thinking, initiative, and good
communication skills (Ministry of Higher Education Malaysia, 2012). The development of
internships that should explore competencies according to Ulrich (2003), is the most crucial
element in helping fresh graduates make the transition into the workforce. With all these
obstacles, fresh graduates are being forced more frequently to accept job offers intended for
people without degrees. Employers from various industries are aware that the degree obtained
does not correspond to the qualifications needed for the position. For this reason, numerous
universities all over the world have attempted to design a new educational system that considers
the essential abilities and competencies such as language and communication, working in a
multicultural environment, and making decisions for new graduates to meet the expectations
of employers (Chiru et al., 2012).

A prolonged period of unemployment can also compromise the skills of fresh graduates
because they are new to the job market. One of the factors that contribute to the unemployment
of fresh graduates is the lack of skills and experience that most fresh graduates have, which
makes it difficult for them to succeed in the workplace and constricts their marketability. Since
fresh graduates have high expectations for their employment prospects, it can be challenging
for them to accept a position that falls short of those goals. According to Serhan et al. (2016),
fresh graduates have high expectations for their jobs because they have studied for a long time.
They believe it to be a reward for their efforts and time spent during the protracted study period.
Additionally, fresh graduates are notoriously disloyal, and unlike earlier generations, they
enjoy switching jobs frequently to the point where employers find it difficult to retain them as
long-term employees (Jackson & Chapman, 2012).

Even though unemployment is a common occurrence, prolonged unemployment can be

problematic for an individual. In their 2019 study, Tengku Kamarul Bahrim, Hassan Azahari,

5
Zulkarnal, Salehhudin, and Mohd Yusop tracked a few of the indirect effects of unemployment
among fresh graduates. Due to the loss of the source of income necessary for survival,
unemployment can result in criminal activities such as theft, robbery, and domestic violence.
Some fresh graduates have started using drugs and engaging in other inappropriate behaviour,
thus making the neighbourhood live in fear and worry.

Financial issues can be a serious challenge for unemployed people. Financial

difficulties brought on by unemployment can exacerbate depressive symptoms for the
unemployed and their spouses, according to McClelland’s 2000 review of earlier research on
unemployed families. This is the result of their need to provide for their families and the rising
cost of living. Due to their reduced income from not having a job, unemployed people
experience financial and family instability. Employment enables one to earn money, but
unemployment restricts a parent’s ability to provide for their family’s essential needs, leading
to financial stress that may impair the parent’s ability to support their children financially and
mentally.

Numerous studies have been conducted to examine how unemployment affects people’s
well-being. According to research, being unemployed can result in several stress-related
problems, including depression, anxiety, headaches, and suicide. A thorough process model has
been proposed by researchers to explain the mechanisms by which factors crucial to
psychological health while unemployed play their roles. Price et al., (2002) point out financial
stress as a significant issue when one is unemployed. The research indicates that unemployment
leads to a “chain of hardship”. Depression and a sense of helplessness are both brought on by
extreme financial stress. Unemployment can be extremely distressing for some people, to the
point where they want to commit suicide.

Several measures need to be implemented immediately considering how critical the

issue of unemployment among new graduates is. Graduates must push past their self-imposed
limitations and adopt a positive mindset to cope better with challenging workplace conditions.
Therefore, the educational model must be drastically altered, and the government should fulfill
its responsibility by increasing training and education. In conclusion, there are a few factors
that contribute to Malaysia’s high rate of fresh graduate unemployment, and these factors will
have an indirect impact on Malaysia and graduates’ development. So, to keep the
unemployment rate from rising further, remedies must be enacted as soon as possible.

6
Problem Statement

Malaysia has invested a great amount in access to education, as demonstrated by high

literacy and enrolment rates. However, the country has had less success in helping recent
university graduates find employment. The rising unemployment rate among fresh graduates
is a serious concern because it could damage Malaysia’s educational system’s reputation and
cause some employers to lose faith in our local graduates. Fresh graduates’ unemployment is a
serious economic problem since it negatively affects both those who are employed now because
they believe their jobs are in jeopardy and those who are unemployed who suffer through the
job search process. Because they have no source of income, people who are constantly
unemployed face financial issues like poverty and having to pay off debt. Psychology-wise,
unemployment can result in mental health issues like depression and make unemployed people
lose confidence and motivation. At the same time, the burden of life leads to the unemployed
engaging in criminal activities such as theft and robbery as well as domestic violence. The
current rate of unemployment remains high, with no solution in sight to reduce employment.
The government of Malaysia’s efforts to raise the average income of the populace and foster
national economic development will be impacted by this issue. This sparked researchers’
interest in conducting studies to understand the effects of unemployment among fresh graduates
in Malaysia. To fulfill this research, a quantitative research study will survey students or fresh
graduates in Malaysia.

Objectives of Study

The research regarding the effects of unemployment among fresh graduates undertakes the
following objectives:

1. To determine the financial effects caused by unemployment among fresh graduates in

Malaysia.
2. To identify the psychological effects caused by unemployment among fresh graduates
in Malaysia.
3. To investigate criminal effects caused by unemployment among fresh graduates in
Malaysia.

7
Research Questions and Hypotheses

One of the major academic topics debated is the effects of unemployment among fresh
graduates. After investing their hard-earned time and money in receiving an education,
university students sometimes find themselves unemployed after graduation. Since this issue
has directly impacted the future of fresh graduates, this survey was done to investigate the
causes and effects of unemployment among fresh graduates in Malaysia. The questionnaires in
the survey are about:

Research question:

1. What are the challenges faced by fresh graduates?

2. What are the factors contributing to unemployment among fresh graduates?
3. What are the financial, psychological, and criminal effects of unemployment among
fresh graduates?

Research hypotheses:

1. Fresh graduates faced challenges that can lead to unemployment.

2. Unemployment among fresh graduates causes by many factors.
3. Unemployment causes financial, psychological, and criminal effects.

Literature Review
Unemployment is defined as people that are willing to work but unable to find a job
within a period (Azina & Ismail, 2011). Employers find it challenging to increase employment
opportunities to lower the unemployment rate in the nation due to the current global economic
crisis. But as the labour market shifts into a replacement phase and workers begin to retire, the
situation may alter. Longer periods of unemployment for fresh graduates are the result of some
employers refusing to replace senior workers who are about to retire as a cost-saving measure
(Ong, 2018). This is because employers are accustomed to the work of veteran workers and do
not have faith in fresh graduates’ skills and capabilities. Moreover, employee training is costly
and time-consuming, and it is difficult to create high-quality training materials and select the
right trainers.

8
 Graduate attributes are a significant factor in unemployment problems. Graduate
attributes are skills, knowledge, and aptitudes that graduates possess that go beyond
disciplinary content knowledge and can be applied in a variety of contexts throughout their
lives. Graduates differ from non-graduates in a way that they possess disciplinary expertise and
technical knowledge gained through university coursework (Bowden, 2000). A degree will help
you in your career and life in general by providing you with knowledge, skills, and experience.
Because of the fierce competition in the job market, skilled workers are in high demand. For
the highly competitive job market, graduates should equip themselves with a variety of
additional skills and possess strong graduate qualities to keep their job.

Fresh graduates from public universities are unemployed because they have negative
attitudes, limited English language proficiency, and weak communication skills (Balakrishnan,
2017). This happens due to the environment, where fresh graduates are struggling to
communicate clearly, especially in English. It can be challenging to find fresh graduates with
strong spoken English in Malaysia, where Bahasa Melayu is the primary language. Many
graduates struggle in the initial stages of the hiring process due to their poor English
proficiency, which makes them less confident during the interview. Fresh graduates are not
only passive and lazy but also full of justification and quick to quit their jobs just because the
job does not meet their expectations.

There are also cases where graduates fail to apply the skills they learned in school to
the workplace (Hanapi & Nordin, 2014). Graduate attributes do not appear to be a well-
publicized concept among fresh graduates. Therefore, universities must do more to inform their
graduates about the qualities they should develop because of pursuing a specific degree. Ranjit
(2009) identified that management, problem-solving, communication, leadership, creativity,
critical thinking, proactivity, self-confidence, and interaction skills as the top ten areas where
Malaysian graduates fall short. Fresh graduates have trouble finding jobs that match their
qualifications without these aspects. Their marketability is undoubtedly diminished by this
perception, which has an impact on the entire job market.

Employability skills, also known as foundational skills or work readiness skills, are
transferable across industries (Doyle, 2009). Graduates who possess high marketability skills
are more likely to be productive in managing and finishing job tasks. Employers are selective
when choosing candidates, and they give preference to experienced and skilled graduates who
have marketable skills rather than students with good grades. Nowadays, employers

9
increasingly seek graduates with theoretical and practical skills. Hossain et al., (2018) argue
that good grades are no longer a guarantee of employment. This is because a perfect grade or a
graduate’s employability does not indicate a lack of essential skills and abilities, respectively.

The level of one's finances, health, and general well-being can all be impacted by
unemployment. Unemployment has a significant impact on a person's financial costs. This is
because losing a job causes a decrease in income (Eliason & Storrie, 2006). Unemployed
individuals experience reduced income as a direct result of not having a job. Because a job
provides wages for the person, being unemployed takes away these wages and leaves the
individual with less available income. People who are unemployed and do not have any other
source of income often rely on their savings or borrowed money to fund essential costs such as
food and living expenses. Because of this, unemployed people will be forced to make
challenging financial decisions that could have an impact on other aspects of their lives, such
as the standard of their housing, food, and medical care. Their quality of life is significantly
impacted by this effect.

In addition, it was discovered that among unemployed people, continuous financial

problems were a significant predictor of psychological stress (Sleskova et al., 2006).
Unemployment causes stress, which ultimately has long-term physiological health effects and
can have negative consequences for people's mental health, including depression, anxiety, and
lower self-esteem, all of which can hurt mental health. On the other hand, when people earn
low wages, they are likely to resolve property crimes such as burglary because they will make
money even if it is illegitimate. Assault and robbery are also related to the high rates of
unemployment because money is the primary motivator. Poverty and lack of financial resources
escalate crime.

Methodology

3.1 Design

The design of this research is survey design, where the survey is distributed and
answered by 40 respondents. The use of a survey in this study effort is to obtain the
respondents’ points of view regarding the issue of unemployment among fresh
graduates. The research is done with the means of Google Forms where there are three
sections of questionnaires provided – Section A (challenges faced by fresh graduates),

10
 Section B (factors contributing to unemployment among fresh graduates), and Section
C (financial, psychological and criminal effects of unemployment among fresh
graduates).

3.2 Sample

The sampling method to be used for this study is simple random sampling. The
full battered population of this study is the respondents from different universities and
different fields of study. The target population will prefer the samples so that each will
have an equal chance to be chosen.

3.3 Instrument

The instrument that will be used for this research is a questionnaire. Also,
primary and secondary sources of data will be used as instruments for data collection.

3.4 Procedures

The procedure of this research is the administration of questionnaires to the

university students to hear their opinions about the research. Also, primary
(questionnaires) and secondary (online articles) sources will be used in this study.

Data analysis

Demographic Information

The respondent’s demographic information includes gender, age, marital status,

academic qualification, university, and fields of study.

Gender Number of Respondents Percentage

Male 23 57.5%
Female 17 42.5%
Table 1: Number of respondents according to gender

Table 1 illustrates the number and percentage of respondents’ gender, for which we
have surveyed 40 respondents. More than half of the respondents are males, 23 respondents
(57.5%) and 17 respondents (42.5%) are females.

11
 Age Number of Respondents Percentage
18 – 20 years old 13 32.5%
21 – 23 years old 24 60%
24 – 26 years old 3 7.5%
Table 2: Number of respondents according to the age

Table 2 shows the age of the respondents in this study which involved 40 respondents
of different ages. A majority of respondents are from the age of 21 – 23 years old, 24
respondents (60%), followed by respondents from the age of 18 – 20 years old, 13 respondents
(32.5%). Only 3 respondents (7.5%) are between the ages of 24 and 26.

Marital Status Number of Respondents Percentage

Single 36 90%
Married 4 10%
Table 3: Number of respondents according to the marital status

Table 3 represents the marital status of the respondents. It can be seen that most of the
respondents are single, 36 respondents (90%) while only 4 respondents (10%) are married.

Academic Qualifications Number of Respondents Percentage

Course 5 12.5%
Undergraduate 30 75%
Postgraduate 5 12.5%
Table 4: Number of respondents according to the academic qualification

Table 4 depicts the academic qualifications of the respondents. As the survey was
conducted for students, most of the students are in their undergraduate, with 30 respondents
(75%). Respondents that are doing the course and under postgraduate are the same, 5
respondents (12.5%) respectively.

12
 University Number of Respondents Percentage
Albukhary International University (AIU) 28 70%
Universiti Kebangsaaan Malaysia (UKM) 4 10%
Universiti Teknologi Malaysia (UTM) 3 7.5%
Universiti Sains Malaysia (USM) 3 7.5%
Universiti Utara Malaysia (UUM) 1 2.5%
University of Malaya (UM) 1 2.5%
Table 5: Number of respondents according to the university

Table 5 represents the name of the university attended by the 40 respondents. The
surveys were mostly conducted by the students who study at Albukhary International
University, about 28 students (87.5%). Four respondents (10%) are from Universiti
Kebangsaaan Malaysia. The number of respondents from Universiti Teknologi Malaysia and
Universiti Sains Malaysia is the same with 3 respondents (7.5%) respectively. Only one (2.5%)
respondent each is from Universiti Utara Malaysia and the University of Malaya.

Fields of Study Number of Respondents Percentage

Business and Social Science 27 67.5%
Education and Human Science 4 10%
Science 4 10%
Information and Communications Technology 2 5%
Media and Communication 2 5%
Language Centre (LC) 1 2.5%
Table 6: Number of respondents according to the field of studies

Table 6 shows the field of studies of the respondents. The surveys were mostly
answered by the students from the Business and Social Science course at 67.5 %, 27 students
out of 40 respondents. The number of respondents from the Science course and Education and
Human Science is the same at 4 respondents (10%) respectively. There are 2 respondents (5%)
from Information and Communications Technology. Students from Media and Communication
are also 2 respondents (5%). Only 1 (2.5%) respondent is from the Language Centre.

13
Section A

The number of respondents relating to the challenges faced by fresh graduates

Fresh graduates are lacking of technical and soft skills

18

16

14

12

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 1: Fresh graduates lack technical and soft skills.

Strongly Agree Agree Neutral Disagree Strongly

Disagree

8 (20%) 16 (40%) 10 (25%) 6 (15%) -

Figure 1 shows the number of respondents who agree and disagree on fresh graduates
lacking technical and soft skills as one of the challenges faced by fresh graduates. A majority of 24
respondents (60%) agree that fresh graduates are lacking technical and soft skills which makes
it difficult for them to find employment. Ten respondents (25%) are choosing to stay neutral
with the statement and only 6 respondents (15%) disagree with the statement. With this finding,
hypothesis 1 is accepted.

14
 Fresh graduates are picky about their jobs or company
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 2: Fresh graduates are picky about their jobs or company.

Strongly Agree Agree Neutral Disagree Strongly

Disagree

9 (22.5%) 20 (50%) 8 (20%) 3 (7.5%) -

Figure 2 illustrates the number of respondents who agree and disagree on fresh graduates
being picky about their jobs or company as one of the challenges faced by fresh graduates that can
lead to unemployment. More than half of the respondents, 29 respondents (72.5%) agree that fresh
graduates have challenges in finding jobs because they are picky about their job or company. Eight
respondents (20%) are choosing to stay neutral with the statement while only 3 respondents
(7.5%) disagree that fresh graduates are picky about their job or company. With this finding,
hypothesis 1 is accepted.

15
 Fresh graduates are expecting unrealistic salary and
benefits expectations
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 3: Fresh graduates are expecting unrealistic salary and benefits expectations.

Strongly Agree Agree Neutral Disagree Strongly

Disagree

9 (22.5%) 21 (52.5%) 7 (17.5%) 3 (7.5%) -

Figure 3 indicates the number of respondents who agree and disagree on fresh graduates
is expecting unrealistic salaries and benefits expectations as one of the challenges faced by fresh
graduates which can lead to unemployment. Most of the respondents, 30 respondents (75%)
agree that fresh graduates have high expectations for job benefits and unrealistic salaries.
Seven respondents (17.5%) are choosing to stay neutral with the statement. Only 3 respondents
(7.5%) disagree with the statement. With this finding, hypothesis 1 is accepted.

16
SECTION B
The number of respondents responds to factors contributing to unemployment among
fresh graduates.

Graduate attributes
20
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 4: Factor graduate attributes contribute to unemployment

Strongly Agree Agree Neutral Disagree Strongly

Disagree

14 (35%) 19 (47.5%) 6 (15%) 1 (2.5%) -

Figure 4 shows how much respondents agree and disagree to graduate attributes as one
of the factors contributing to unemployment among fresh graduates. A majority of 19
respondents (47.5%) agree with the statement, followed by 14 respondents (35%) strongly
agree with the statement. Six respondents (15%) feel neutral, while just one respondent (3%)
disagrees with graduate attributes as one of the factors contributing to unemployment among
fresh graduates. With this finding, hypothesis 2 is accepted.

17
 Job mismatches
18

16

14

12

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 5: Factor job mismatch contribute to unemployment

Strongly Agree Agree Neutral Disagree Strongly

Disagree

10 (25%) 17 (42.5%) 12 (30%) 1 (2.5%) -

Figure 5 shows the number of respondents who agree and disagree that job mismatch is
one of the factors contributing to unemployment among fresh graduates. More than half of the
respondents, 27 respondents (67.5%) agree that job mismatches are one of the factors that can
cause unemployment among fresh graduates. Meanwhile, 12 respondents (30% ) choose to stay
neutral with the statement and only one respondent (2.5%) from a total of 40 respondents
disagree with the statement.

18
 Economic instability
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 6: Factor economic instability contributes to unemployment

Strongly Agree Agree Neutral Disagree Strongly

Disagree

13 (32.5%) 17 (42.5%) 9 (22.5%) 1 (2.5%) -

Figure 6 shows the number of respondents who agree and disagree that economic
instability is one of the factors contributing to unemployment among fresh graduates. The
majority of 30 respondents (75%) agree that economic instability can cause unemployment
among fresh graduates. Nine respondents (22.5%) choose to stay neutral about the statement.
While only one respondent (2.5%) from 40 respondents disagree with the job mismatch factors.

19
 Employer preferences
22
20
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 7: Factor employer preferences contribute to unemployment

Strongly Agree Agree Neutral Disagree Strongly

Disagree

11 (27.5%) 21 (52.5%) 7 (17.5%) 1 (2.5%) -

Figure 7 indicates the number of respondents who agree and disagree with the factor of
employer preferences contributing to unemployment among fresh graduates. More than half of
the respondents, 32 respondents (80%) agree that employer preferences play a very important
factor in unemployment among fresh graduates. Seven respondents (17.5%) choose to stay
neutral with the statement and only one respondent (2.5%) disagrees with employer preferences
as one of the factors contributing to unemployment among fresh graduates. With this finding,
hypothesis 2 is accepted.

20
 Quality of education and training
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 8: Factor quality of education and industry training contribute to unemployment

Strongly Agree Agree Neutral Disagree Strongly

Disagree

12 (30%) 16 (40%) 8 (20%) 3 (7.5%) 1 (2.5%)

Figure 8 illustrates the number of respondents who agree and disagree that the quality
of education and industry training play a factor in unemployment among fresh graduates. Most
of the respondents, 28 respondents (70%) agree that the quality of education and industry
training is one of the factors contributing to unemployment among fresh graduates.
Eight respondents (20%) choose to stay neutral with the statement. Only 4 respondents (10%)
disagree that the quality of education and industry training is one of the factors that cause
unemployment among fresh graduates. Therefore, hypothesis 1 is accepted.

21
SECTION C

The number of respondents who responds to financial, psychological, and criminal

effects of unemployment among fresh graduates

Unemployment can lead to poverty

18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 9: Unemployment can lead to poverty

Strongly Agree Agree Neutral Disagree Strongly

Disagree
15 (37.5%) 16 (40%) 5 (12.5%) 4 (10%) -

Figure 9 represents the number of respondents who agree and disagree that
unemployment can lead to poverty in terms of financial effect. A majority of 31 respondents
(77.5%) agree that unemployment can lead to poverty. Five respondents (12.5%) are staying
neutral about the statement and only 4 respondents (10%) disagree with the statement saying
that unemployment can lead to poverty. Therefore, with this finding, hypothesis 3 is accepted.

22
 Unemployment causes a person to bear the burden of debt
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 10: Unemployment causes a person to bear the burden of debt

Strongly Agree Agree Neutral Disagree Strongly

Disagree
13 (32.5%) 22 (55%) 4 (10%) 1 (2.5%) -

Figure 10 shows the number of respondents who agree and disagree that unemployment
can cause a person to bear the burden of debt in terms of financial effect. More than half of the
respondents, 35 respondents (87.5%), agree that unemployment causes a person to bear the
burden of debt. Four respondents (10%) are keeping neutral with the statement and only one
respondent (2.5%) disagrees with the statement.

23
 Unemployment leads to poor mental health such as
depression
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 11: Unemployment leads to poor mental health such as depression

Strongly Agree Agree Neutral Disagree Strongly

Disagree
22 (55%) 13 (32.5%) 4 (10%) - 1 (2.5%)

Figure 11 portrays the number of respondents who agree and disagree that unemployment
leads to poor mental health such as depression in terms of psychological effects. The majority
of respondents, which is 35 respondents (87.5%), agree that unemployment leads to poor
mental health. This is caused by the constant problematic thinking that they must get a job or
else they will be deemed unworthy and unable to make ends meet. Unemployed individuals
feel powerless over the direction of their lives and end up feeling stressed about being jobless.
On the other hand, four respondents (10%) choose to stay neutral with the statement saying
unemployment leads to poor mental health. Only one respondent (2.5%) disagrees with the
statement. With this finding, hypothesis 3 is accepted.

24
 Unemployment causes people to lose self-confidence and
motivation
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 12: Unemployment causes people to lose self-confidence and motivation

Strongly Agree Agree Neutral Disagree Strongly

Disagree
17 (42.5%) 16 (40%) 5 (12.5%) 2 (5%) -

Figure 12 illustrates the number of respondents who agree and disagree that
unemployment causes people to lose self-confidence and motivation in terms of psychological
effects. A majority of 33 respondents (82.5%) agree that unemployment causes people to lose
self-confidence and motivation. Five respondents (12.5%) are choosing to stay neutral that
unemployment causes people to lose self-confidence and motivation while only 2 respondents
(5%) disagree with the statement.

25
 Unemployment causes domestic violence
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 13: Unemployment causes domestic violence

Strongly Agree Agree Neutral Disagree Strongly

Disagree
10 (25%) 20 (50%) 5 (12.5%) 4 (10%) -

Figure 13 depicts the number of respondents who agree and disagree that
unemployment causes domestic violence in terms of criminal effects. Most of the respondents,
30 respondents (75%), agree that unemployment causes domestic violence. Five respondents
(12.5%) are staying neutral about the statement saying that unemployment causes domestic
violence and only 4 respondents (10%) disagree with the statement. Therefore, hypothesis 3 is
accepted.

26
 Unemployment causes a person to commit crimes such as
stealing and robbing
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure 14: Unemployment causes a person to commit crimes such as stealing and robbing

Strongly Agree Agree Neutral Disagree Strongly

Disagree
15 (37.5%) 16 (40%) 5 (12.5%) 1 (2.5%) 2 (5%)

Figure 14 indicates the number of respondents who agree and disagree that
unemployment causes a person to commit crimes such as stealing and robbing in terms of
criminal effects. More than half of the respondents, 31 respondents (77.5%) agree that
unemployment causes a person to commit crimes. Five respondents (12.5%) are staying neutral
with the statement that saying unemployment causes a person to commit crimes. Only 3
respondents (7.5%) disagree with the statement. With this finding, hypothesis 3 is accepted.

Unemployment happens when some people are willing to work but unable to find a job
within some period (Azina & Ismail, 2011). Lots of challenges need to face by these people
especially fresh graduates just to find a job. If they could not find a job for a longer period, it
can lead to some negative effects such as financial, psychological, and criminal effects among
fresh graduates. Initiatives should be taken to curb this unemployment issue among them.
Therefore, to overcome this issue, universities should make sure students or graduates have
enough involvement in industrial or internship training before graduating. This is because most
of the factors contributing to unemployment come from university industrial training. Most

27
companies prefer to hire lots of experienced workers than those without work experience. This
is because experienced workers are more used to working and can independently help
themselves throughout the working environment. To deal with these issues, all the universities
should work out from students’ studies syllabus with more industrial training or internship in
order to gain more work experience and soft skills on campus and off campus. For instance,
the universities can increase the duration of the internship period from standard 3 months to a
longer period to help the students or the graduates gain pre-work experience skills. To sum it
all up, many initiatives can be taken to solve the unemployment issue among fresh graduates.
Thus, the unemployment rate among fresh graduates in Malaysia can be reduced more in the
future.

Conclusion

The problem of unemployment among fresh graduates in Malaysia was determined

based on this survey. We found one potential solution to the issue of unemployment among
fresh graduates in Malaysia could be for the government to invest in creating more job
opportunities in the country. This could be done through initiatives such as offering tax
incentives to companies that hire recent graduates or investing in industries that are expected
to grow in the future. Additionally, the government could also provide training programs and
apprenticeships to help fresh graduates gain the skills and experience needed to secure jobs.

Another approach could be to focus on improving the quality of education in the

country, to make sure that graduates are equipped with the skills and knowledge that are in
demand by employers. For example, by partnering with industry leaders to develop a
curriculum that aligns with the current needs of the workforce, or by providing more
opportunities for students to gain practical experience while in school.

To address the issue of unemployment among fresh graduates in Malaysia, the

government and other stakeholders need to take steps to improve the education and training
system, create more job opportunities, and promote economic growth. This can help to ensure
that young people have the skills and opportunities they need to succeed in the labor market
and contribute to the country's economic development.

28
 It's worth noting that any solution will also need to take into account the current
economic situation of the country and the global market. This solution has the potential to
address the issue of unemployment among fresh graduates in Malaysia by creating more job
opportunities and by improving the quality of education to better align it with the workforce’s
needs. However, the success of this solution will depend on the implementation and the
effectiveness of the initiatives and programs put in place. It is important to have a monitoring
and evaluation system in place to measure the success of the solution and make adjustments if
necessary.

Unemployment among fresh graduates in Malaysia can have several negative effects
on individuals and society. For individual graduates, unemployment can lead to financial
hardship and a sense of frustration and disappointment. It can also harm their mental health and
well-being. For society as a whole, high levels of unemployment among fresh graduates can
lead to an increase in social and economic inequality. It can also harm the overall economy, as
a lack of job opportunities for young people can lead to reduced productivity and innovation.

29
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32
Appendices

33
 Fresh graduates are lacking of technical and soft skills
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

34
 Fresh graduates are picky about their jobs or company
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Fresh graduates are expecting unrealistic salary and

benefits expectations
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graduate attributes
20
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

35
 Job mismatches
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Economic instability
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Employer preferences
22
20
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

36
 Quality of education and training
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Unemployment can lead to poverty

18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Unemployment causes a person to bear the burden of

debt
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

37
 Unemployment leads to poor mental health such as
depression
25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Unemployment causes people to lose self-confidence and

motivation
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Unemployment causes domestic violence

25

20

15

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

38
 Unemployment causes a person to commit crimes such
as stealing and robbing
18
16
14
12
10
8
6
4
2
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

39