However, unemployment among graduates remains unsolved, where 65,500 graduates were recorded unemployed which is 167 % of the total unemployed labour in 2010 based on department of statistics, malaysia. There are seven causes of unemployment four cause frictional unemployment this type of unemployment is when employees leave their job to find a better one two cause structural unemployment that's when workers' skills or income requirements no longer match the jobs available the seventh cause leads to cyclical unemployment.
Unemployment issue in malaysia rahmah et al (2011) mentioned that one of the factors that contribute to the unemployment problem among the malaysian graduates is the quality of the graduates there are employers in the industry, who gave negative comments on the graduates and mentioned that the graduates do not have the suitable skills and qualifications, which meet the needs of the industry.
As stated by the department of statistics malaysia, the unemployment rates among fresh graduates have increased from 30% in 2013 to 34% in 2016 and national unemployment was 35% out of 14 million malaysians in the labour market. Firstly, the main problem ability of the unemployment among malaysia graduates is the lack of skills and experiences nowadays a lot of theoretical subject have been taught without implementing the practical sides and without skills you have nothing to apply to solve problem efficiently.
4 reason why graduates unemployed the increasing unemployment rate among the graduates in malaysia is a worrying trend for many years, the issue cropped up again and again, made the news headlines, and even hit the parliament. Causes of unemployment in nigeria lampman (1974), in his research on unemployment and its causes found that a good research on the effect of unemployment, and an intelligent approach to public policy aimed at preventing or reducing it and would demand some understanding of the causes of unemployment in a given society.
The seventh cause leads to cyclical unemployment frictional and structural unemployment occur even in a healthy economy the natural rate of unemployment is between 45 percent and 50 percent, according to the federal reserve.
The issue of unemployment among graduates in malaysia need to be addressed for the good of the economy together figure 1 labour market in malaysia, jan 2015 figure 2: top reasons for unemployment among graduates in malaysia source: job street com. Graduate unemployment is unemployment among people with an academic degree research undertaken proved that the unemployment , and much more so, the underemployment of graduates , are devastating phenomena in the lives of graduates and a high incidence of either, are definite indicators of institutional ineffectiveness and inefficiency.