LETTER: Those who have felt the brunt of the economic meltdown during this ongoing pandemic are the youth of the world.
The souring economy brought about by the pandemic could affect over 50,000 fresh graduates in Malaysia this year, against the backdrop of an already alarming graduate unemployment rate stemming from job shortages and skills mismatch.
The Class of 2020 is particularly at risk of graduating into a recession, owing to immense economic fallout. A brewing economic storm is likely to trigger tightened hiring and limited job vacancies, raising the risk of unemployment fresh out of graduation.
As competition grows due to increased demand from returning students and pupils whose placements have been suspended overseas during the summer, internships will also be in shorter supply. This will leave a void in their resumes.
Besides, several key networking events for graduating students are likely to be cancelled. This includes 'The London Malaysian Career Fair' hosted by UKEC-GRADUAN, where Malaysian students in the UK and Ireland seek employment opportunities. The physical fair has now been turned into a virtual platform instead in light of the lockdown. Increasingly strict measures of social distancing would eventually interrupt the activities of social causes that will characterise this generation.
During the MCO, the domestic economy will operate at around 45 per cent of its capacity. The labour market is also predicted to be considerably weaker, as warned by the central bank. The unemployment rate is expected to increase to 4 per cent. The country's unemployment rate was 3.7 per cent during the 2008-2009 Global Financial Crisis and 3.2 per cent during the Asian Financial Crisis in 1998.
Younger employees tend to have more difficulties seeking and retaining jobs in a recession. For example, during the Global Financial Crisis, the unemployment rate for all jobs across the world was at 10.2 per cent – around half were between the ages of 16 and 24.
Fresh graduates are far from able to reap the benefits of the periodical release of fiscal stimulus packages worth RM250 billion. This key policy response designed by Malaysia, among other things, is intended to help employers retain workers. This relief would do more for those who are already employed rather than for fresh graduates who wish to enter the labour market.
As the pandemic drags on, here are what youth can do. They must switch from being reactive to being proactive. Focus not on getting through the downturn, but on being able to manoeuvre the upturn when it comes.
This lull time is an optimal period to address skills gaps that may hinder the attractiveness of future job applications and to earn mentorship on how to develop themselves. This pertains not only to employees who are struggling to keep their jobs, but also to those of us who are still studying and have yet to enter the job market.
We're landing on a note of hope. Despite grim short-term projections of the labour market, the outlook for economic growth is expected to improve over the second half of 2020 and 2021. Analysts anticipate that countries will get back to work once the pandemic is under control.
Perhaps Malaysia could even transform this unprecedented crisis into an unprecedented opportunity, if we play our cards correctly.
Ain Nurfitrah Aidrul Hisham
Executive Committee of United Kingdom and Eire Council (UKEC)
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times