More jobs, higher wages in 2023 but experts say must address lack of women in workforce

PETALING JAYA: Graduate employment and wages in 2023 went up but interest groups stress that further action is needed to sustain this trend.

They highlight the need to improve productivity and adopt technology while also addressing the lack of women in the workforce and their limited progress into leadership roles to fully use skilled talent.

Executive search and leadership development firm CnetG Asia managing partner Raj Kumar Paramanathan said that various factors have contributed to this increase in graduate employment and wages.

“The government’s proactive economic and investment policies have led to job creation, while the easing of pandemic-related caution has seen more individuals re-entering the workforce.

“Hybrid work models have facilitated participation for those with travel constraints, such as distance or traffic issues. Improved urban and inter-state connectivity has also enhanced talent mobility, expanding employment opportunities across states,” he said in an interview yesterday.

Despite this positive trend, Raj Kumar said challenges remain.

The under-representation of female graduates in the workforce and their limited advancement to leadership roles often stem from the “broken rung” phenomenon.

“This issue arises from factors like reduced confidence and caregiving responsibilities, often referred to as the ‘caregiver penalty’. This results in women stepping back or leaving the workforce.

“Systemic issues like ‘talent loss through caregiving responsibilities’ highlight the loss of female talent from professional growth opportunities. Addressing this is essential for achieving inclusive growth,” he said.

Raj Kumar noted that the positive trend in graduate employment is expected to continue into 2025.

“This is supported by sustained growth in sectors such as ICT, manufacturing, automotive, e-commerce, healthcare, biotechnology, renewable energy and construction, with an emphasis on infrastructure development and sustainability initiatives.

“The expanding tech economy is creating diverse new job opportunities, offering a wide range of career options for talent,” he said.

Raj Kumar was commenting on the Graduates Statistics 2023 by Statistics Malaysia, which has shown that more graduates landed jobs in 2023, and those who were employed saw an overall increase in wages compared to 2022.

Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said government initiatives, such as the National Economic Recovery Plan (Penjana) and MyDigital initiative, have played a pivotal role in reskilling and upskilling graduates to align with market demands, particularly in the digital and technological sectors.

“Additionally, tax incentives and grants for employers hiring fresh graduates have boosted employment rates, while enhanced funding and emphasis on Technical and Vocational Education and Training (TVET) have further improved graduate employability,” he said.

Syed Hussain has observed that the economic rebound in 2023 has led to job growth in the technology, e-commerce, healthcare and renewable energy sectors.

“Increased foreign direct investment in areas like semiconductors and logistics has created highly-skilled jobs. The collaboration between universities and employers has better prepared graduates for the workforce through internships and training programmes.

“Updates in higher education curricula to reflect labour market trends, especially in artificial intelligence (AI), data analytics and green technology, have also been crucial,” he added.

Looking ahead to 2025, with an anticipated GDP growth of 4.5% to 5.5%, supported by a healthy labour market, a record RM421bil Budget 2025, and a minimum wage of RM1,700 per month, Syed Hussain believes wages will continue to rise, including for fresh graduates.

“While employment rates and wages are projected to improve, additional measures are necessary to ensure graduates fully benefit from these trends.

“Success will rely on effective policy implementation focused on fiscal discipline, inclusivity and technological innovation,” he said.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin has noted that better awareness and access to education have allowed more individuals to pursue tertiary education, resulting in more graduates within families.

He emphasised the importance of soft skills and a proactive learning attitude for employability.

“Having a degree is important, but it’s soft skills and a commitment to continuous learning that make graduates more employable.

“Skills like analytical thinking, independence, creativity and entrepreneurship are highly valued in the workforce,” he said.

Mohd Uzir also pointed out disparities in average wages between states, indicating that some areas lagged behind the Klang Valley.

However, he remains optimistic about future industrialisation due to infrastructure improvements, such as new highways, which could accelerate growth.

Woon Tai Hai, chair of the National Tech Association of Malaysia research committee, reported significant growth in the tech industry, as highlighted in Pikom’s Economic and Digital Job Market Outlook 2024-25.

He noted that rising demand for skills in AI, data science, cloud computing and cybersecurity has led to higher salaries for digital talents.

“This trend benefits fresh graduates, who are increasingly being hired into the industry.

“We expect steady growth to continue into 2024 and 2025, with salary growth stabilising at 7.19% this year and 7.12% in 2025,” he said.

He added that the influx of graduates into the tech field suggests Malaysia may avoid future brain drain issues.

To ensure graduates are well-prepared for employment, he suggested that universities provide more training in communication, logical thinking and analytical skills to help them compete with international talent.