KUALA LUMPUR: Malaysia registered 5.74 million graduates, an increase of 4.2 per cent, with more than two-thirds employed in the skilled occupation category in 2023.
This is based on the Graduates Statistics 2023 issued by the Department of Statistics Malaysia.
The report describes the statistics of overall graduates in the labour market in 2023 by demographic and socio-economic characteristics.
Graduates in this report are defined as individuals with the highest certificate obtained from universities, colleges, polytechnics, recognised bodies or equivalent, with a study duration of at least two years.
Chief statistician, Datuk Seri Dr Mohd Uzir Mahidin, said a positive economic and labour market environment throughout 2023 has contributed to the increase in the number of graduates, registering 5.74 million persons or 22.3 per cent of the working-age population of 15 years and above.
"Out of the total graduates, 4.92 million individuals were active in the labour force, reflecting a Graduate Labour Force Participation Rate (GLFPR) of 85.7 per cent.
"Degree holders represent 54.4 per cent (or 3.12 million individuals), while diploma holders account for 45.6 per cent (or 2.62 million individuals).
"The number of degree graduates in the labour force rose by 5.4 per cent, while diploma holders saw a 3.5 per cent increase in year-on-year growth, driven by improved employment opportunities and lower unemployment," he said.
Uzir said last year, employed graduates grew by 4.9 per cent to 4.76 million individuals compared to 4.53 million persons in 2022, as Malaysia fostered a healthier labour market.
"Around two-thirds or 67.6 per cent of graduates were employed in the skilled occupation category, accounting for 3.21 million individuals, with the highest proportion working as professionals (57.4 per cent), followed by technicians and associate professionals (24.2 per cent) and managers (18.5 per cent).
"Employed graduates in semi-skilled roles accounted for 31.3 per cent, while those employed in the low-skilled category represented just 1.1 per cent.
"Employed graduates in skilled and semi-skilled categories recorded positive growth of 7.8 per cent and 0.2 per cent, respectively, compared to 2022, while the low-skilled category registered a notable decline of 22.0 per cent."
Elaborating further, Uzir said, "In terms of the status of employment for employed graduates, the employees' category accounted for 87.4 per cent, reaching 4.16 million individuals last year, a 4.1 per cent increase year-on-year.
"The employers' category, representing 5.3 per cent, saw a substantial rise of 9.3 per cent, totalling 251,400 individuals.
"Similarly, the number of own-account workers, accounting for 6.5 per cent of employed graduates, grew by 13.5 per cent to 310,700 individuals last year.
"Meanwhile, unpaid family workers made up the remaining 0.8 per cent, recording 37,600 individuals."
By economic sector, most graduates were employed in the services sector, which accounted for 77.5 per cent of graduate employment, recording 3.69 million individuals.
This was followed by the manufacturing sector (13.4 per cent) with 637,900 individuals and the construction sector (6.3 per cent) with 301,100 individuals.
"Meanwhile, the agriculture sector (1.7 per cent) and mining and quarrying sector (one per cent) comprised the remainder with 83,000 individuals and 46,800 individuals, respectively."
He said skill-related underemployment remains a challenge, not only in Malaysia but also at the global level.
"Malaysia has taken significant steps to address this issue, demonstrating its commitment to aligning workforce qualifications with labour market demands.
"In 2023, the number of graduates working below their qualifications fell by 0.7 per cent to 1.54 million individuals, bringing the graduate skill-related underemployment rate down to 32.4 per cent."