However, producing human capital resources that are comprehensive and at a world class
level is not an easy task and it is a challenge to Malaysia.
Currently, unemployment among the graduates becomes an issue, not only in Malaysia but also around the
world. The Department of Statistics Malaysia (2011) found that the unemployment rate in Malaysia had
increased from 3.2 % in 2007 to 3.7% in 2009. The Minister of Human Resources, Fong Chan Onn, stated that
the National Economic Action Council with the collaboration of the Department of Human Manpower had
conducted a census in 2005 and it is found that 59000 graduates and diploma holders were unemployed and
30000 graduates worked in a field that do not match with their higher educational qualifications.
Based from resources of job vacancies and job placement in Peninsular Malaysia in 2012, it is revealed that
job vacancies are increasing from year to year. However, these job vacancies are filled by only a part of the
workers. This shows that the unemployment issue is happened not because of the lack of job opportunities
instead it happens because of other factors such as the low quality of a graduate. Even though the unemployment
rate in Malaysia is considered low as compared to countries like the United States and other countries in Europe,
it is not an issue to be neglected. This is because graduates are human workforce that is vital and become the core
for innovative and productive high-income economy. Therefore, this paper aims to identify primary factors that
lead to the unemployment issue among the Malaysian graduates and hence it can hopefully become guidelines in
curbing this problem.