Government Targets 30% Graduate Underemployment by 2030

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KUALA LUMPUR, 28 October 2026 (The Capital Post) – The government aims to reduce skills-related graduate underemployment to 30 per cent by 2030 under the 13th Malaysia Plan (RMK13), while introducing measures to improve starting salaries and align graduates’ skills with industry needs.

Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan outlined the initiatives during an oral question-and-answer session in the Dewan Rakyat on Wednesday.

Responding to Bukit Bendera Member of Parliament Syerleena Abdul Rashid, he said the skills-related graduate underemployment rate declined slightly from 32.4 per cent in 2023 to 32.2 per cent in 2024, based on Department of Statistics Malaysia (DOSM) data.

He also highlighted a RM2,500 starting basic salary framework introduced under Budget 2027 for graduates and semi-skilled jobs, aimed at improving wage alignment with workers’ qualifications and skills.

To address employment mismatches, the Ministry of Human Resources (KESUMA) is implementing several initiatives through its departments and agencies.

The Social Security Organisation (PERKESO) assists jobseekers in securing employment that matches their qualifications, while the Department of Skills Development (JPK) maintains 2,028 active National Occupational Skills Standards (NOSS).

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JPK also implements the Academy in Industry (ADI) initiative, involving 1,391 training centres and companies.

Meanwhile, the Manpower Department (JTM) is strengthening technical and vocational education and training (TVET) through 33 ADTEC JTM campuses and two satellite campuses, focusing on automation, semiconductors and advanced automotive technology.

The 2026 TVET Graduate Tracer Study recorded a 98.0 per cent employability rate among JTM graduates, with 85.4 per cent working in fields related to their training.

According to a post on the official Facebook page of Kementerian Sumber Manusia, these initiatives are intended to reduce graduate skills mismatches, strengthen workforce capabilities and expand access to higher-value employment opportunities – The Capital Post