The School-to-Work Transition of Young Malaysians Hisham Hamdan Date: 12 December 2018 Venue: Mercu UEM, KL Sentral
Background Khazanah Research Institute
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Background: From Inputs to Outcomes Macro outcomes impact and are impacted by inputs from government policy. Similarly, Government policy both impacts and is impacted by Labour inputs (People). KLCI Index Current Account GDP Unemployment Macro Balance Outcomes Ringgit Inflation Fiscal Interest Rate deficit Debt Rates Bumiputera Industrial Labour Technology Policy Policy Market Policy Trade Housing Government Policy Policy Agriculture Monetary Energy Education Policy Policy Policy Policy Policy Social Nutrition Affordable Care Work Protection Housing Decent Jobs People Inputs School- Work Agri Access to Socio-economic Transition Smallholders healthcare mobility • Quality of economic growth ultimately depends on quality of inputs. • KRI’s mission is to undertake research on issues affecting the quality of life – and therefore productivity – of people. The research seeks to influence policies with the objective of achieving development outcomes beneficial to all Malaysians . 3
+THE STATE OF HOUSEHOLDS 2018 Background: The Economic Machine The economic machine takes Capital and Labour as inputs to produce GDP; Labour Quality matters to increase Productivity & Wages How the Economy Works Profits Capital GDP Education Y = = AF(K,L) F(K,L) Labour Training Wages Entrepreneurship • The economy combines labour and capital to produce output . In return, labour gets wages and capital gets profits . • Increasing wages requires increasing productivity. Increasing productivity requires increasing labour quality . How do we improve the quality of labour? 4
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Background: KRI’s 5 Focus Areas Amidst the context of Demography, Science & Tech, and Politics & Geopolitics, KRI undertakes research in 5 areas impacting Growth, Equitability, and Societal Well-Being The Context in which We Operate Research Areas Impact Areas Growth Societal Well- Being Politics and Science and Int’l Food trade and geopolitics technology Agri. Equitability Shelter Jobs and and Public cities skills health Demography • KRI investigates issues that impact Growth, Equitability, and Societal Well-Being within the contexts of Demography, Science & Technology, and Politics & Geopolitics. • Using the lenses of Shelter & Cities, Jobs & Skills, Food & Agriculture, International Trade and Public Health, KRI forms policy insights relevant to Malaysia. 5
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Background: Our Journey So Far KRI has published 10 Books, 9 Discussion Papers and various articles since its inception in 2014. Books Discussion Papers • KRI publishes books, discussion papers and articles, aimed at ultimately influencing policy directions , while improving public awareness about crucial policy issues. 6
What inspired the SWTS? Khazanah Research Institute
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS The State of Households II SOH II provided a sharp focus on Malaysia’s demographic landscape – particularly gender and ageing 2016 Households are But households becoming Low wages and youth better off increasingly indebted unemployment More women have We are becoming an Food prices rising faster entered workforce ageing population than overall inflation Women’s labour force participation rate by age 1995, 2004, and 2014 100% 2014 80% 60% 40% 1995 20% 2004 0% FOCUS OF SWTS • SOH II highlighted several labour market issues , which touched on the difficulties for Malaysian youth in finding decent work. The SWTS project was born out of this research from the SOH II. 8
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Why does School-to-Work Transition matter? Malaysia will have an aging population post 2020; if the youths of the present cannot get good jobs, how will they generate the GDP required to support our aging society? 2 3 1 Education ≠ Jobs Aging Malaysia Lower Output Youth Unemployment (15-24 yrs) Working Age Population Youth Indonesia 15.4% % Profit 14 World 15-24 Youth World 12.6% Working Age (LHS) 12 Youth Malaysia 10.8% Dependent Population (RHS) 10 70% 34% Capital Malaysia 8 15-24 69% 33% Youth Singapore 5.3% 6 GDP Youth Thailand 3.8% 4 68% 32% Malaysia Total 2 Labour Source: DOSM, ILO (2018) 67% 31% 0 2018-20 Peak 66% 30% 69.4% Wages 65% 29% Malaysia Tertiary Enrollment 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 % of Malaysia’s Labour Force with Lower Labour Input Source: DOSM (2018) Tertiary Education Working age population (15-64 yrs) 10% 13% 17% 20% 24% 28% will peak by 2020, and the dependent 8% Lower Output 6% population (0-14, 65+) will increase thereafter. Without good jobs, how will 1982 1987 1992 1997 2002 2007 2012 2017 Less Support for youths of today support our aging Source: DOSM Aging Population Youth today best educated generation, society? but face challenges in finding jobs • Youth today are more educated than ever , but still face increasing unemployment. • An aging Malaysia means that it is crucial to equip youth with skills for future growth & productivity. Lower labour quality today means lower output tomorrow, making it difficult to support an aging society. 9
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Common Perceptions among Employers How true are these Perceptions? • Unemployed youth in Malaysia are typically perceived as ‘ too choosy ’, have unrealistic expectations or do not have the skills desired by employers. • But how much of these common notions are grounded in reality? 10
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Why the SWTS methodology? This SWTS is the first ever in Malaysia, and has been adapted to the Malaysian context, providing direct input from youths who typically are not given a voice The SWTS in Malaysia Direct Input from Youth & Employers 1 Number of Participants Provide qualitative & quantitative analysis on… Upper Secondary 7,026 Youths’ Aspirations & Tertiary Education 3,572 Behavioral Choices Young Job Seeker 5,696 Quality of Transition Young Worker 5,871 Youth Individual Profiles determine TOTAL Youth 22,165 labour market outcomes TOTAL Employers 1,620 SWTS was conducted from end of 2 Clarify misperceptions of 2017 to start of 2018 youth labour demand Survey developed by ILO 3 Employer Tested in 34 low/middle-income countries • This report is the result of conducting the first ever SWTS in Malaysia. • SWTS provides direct inputs from youths on youth profiles, transition experience & aspirations . SWTS also sheds light on skills mismatches & popular myths in the youth 11 labour market.
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Youth Labour Landscape: What we cover Transition from school-to-work is a critical juncture in the life of any young man/woman Young workers Education Job-seekers Employers Chapter 2 Chapter 5 Chapter 6 Chapter 4 In-School Youth Young Workers Employers Young Job Seekers Chapter 3 Youth in Tertiary Education • SWTS analyses the issues & provides policy recommendations for each stage of a youth’s experience with transition from school to workforce. • Each stage is equally crucial as it feeds into the next . The necessary support & 12 resources must be provided throughout the whole process to improve quality of transition.
Thank You 15
+THE SCHOOL-TO-WORK TRANSITION OF YOUNG MALAYSIANS Climbing the Ladder: Socio Economic Mobility in Malaysia Malaysia is mobile ─ One’s starting point is not the most important factor for mobility 2016 Gender & location key Children better educated Children better skilled determinants for upward than parents than parents mobility Male children more Children in urban more likely to be upward likely to be upward mobile than female FOCUS OF SWTS mobile than rural ‘Middle class squeeze’ 19% of children’s income is associated with parents’ income, lower than many developed nations Children move down the income ladder and earn less than their parents • KRI’s Socio Economic Mobility Study in 2015 provided a measure of how Malaysian families have fared in the face of growth and structural transformation . • Improvements in children education levels relative to parents form an important part of the SWTS research – Why do better-educated children face poorer job prospects? 14
Recommend
More recommend
