Unemployment In Malaysia Analysis

1.0 Introduction

Unemployment occurs when an individual who are not in employment and who are either in the process of moving to a new job or who are unable to find work(citation????????). There are two categories of unemployment which is voluntary and involuntary unemployment. Voluntary Unemployment is when there is a job available but the unemployed person is unwilling to accept it at the prevailing wage rate while Involuntary Unemployment is when a person is willing to work at the prevailing wage rate but is unable to find one. The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labour force who are unemployed.

Most of the unemployed are Malays from lower-income

These are person that naturally goes unemployed after completion of studies. This type of unemployment is very common in Malaysia. Every year, over 200,000 students graduate from institutions of higher learning. Shockingly, 1 out of 4 graduates remain unemployed 6 months after graduation, with the majority being Degree holders. These graduates make up 35.5% of those who are unemployed.

Moreover, unemployment occurs because of the normal turnover in the labour market and the time it takes for workers to find new jobs. This is also called frictional unemployment. Throughout the course of the year in the labour market, some workers change jobs. When they do, it takes time to match up potential employees with new employers. Even if there are enough workers to satisfy every job opening, it takes time for workers to learn about these new job opportunities, and for them to be considered, interviewed and

4.1 Inflation

The definition of inflation is too much money chasing after too few goods.

There are a few different scenarios where inflation can cause unemployment. Unemployment can cause unemployment when the uncertainty of inflation leads to lower investment and lower economic growth in the long term. Besides, inflation can also leads to decline in competitiveness and lower export demand, causing unemployment in the export sector. When inflation occurs, standard of living falls and cost of living will rises.

4.2 Disequilibrium of Balance of Payment

The definition balance of payments of a country is record of all its economic transactions with the outside world in a given year.

Disequilibrium in the balance of payment of a country may be either a deficit or surplus. If there is a surplus in the balance of payment and the disequilibrium is said to be favourable and if there is a deficit in the balance of payment and the disequilibrium is said to be unfavourable.

4.3 Slower economic