Determinants of underemployment in Sabah, Malaysia

Malaysia has enjoyed full employment at approximately 3% unemployment rate but there are still many underlying problems in the labour market. There is still a limitation in the flexibility of the labour market in providing suitable and adequate jobs to individ uals. In recent years, the number of in...

Full description

Bibliographic Details
Main Author: Chin, Yee Ting
Format: Thesis
Language:English
English
Published: 2023
Subjects:
Online Access:https://eprints.ums.edu.my/id/eprint/40858/1/ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/40858/2/FULLTEXT.pdf
Description
Summary:Malaysia has enjoyed full employment at approximately 3% unemployment rate but there are still many underlying problems in the labour market. There is still a limitation in the flexibility of the labour market in providing suitable and adequate jobs to individ uals. In recent years, the number of individuals graduating from higher education institutions has increased rapidly worldwide including in Malaysia. Investment in the education of a country will give a positive influence on productivity, gross domestic pr oduct (GDP), and economic growth. However, the risk of underemployment is also increasing. Thus, a highly qualified individual had to accept a job offer that requires lower qualifications resulting in underemployment to avoid unemployment or to acquire wor k exp erience in Malaysia. The objective of this research is to investigate the relationship between underemployment, demographic factors, and socio socio-economic factors in Sabah, given the government’s continuous effort and policies to encourage greater utiliz ation of the labour force according to their skills, abilities, and educational backgrounds. This study was carried out in Sabah, focusing on three major cities, namely Kota Kinabalu, Sandakan, and Tawau. A field survey was carried out to obtain primary da ta. P robit regression analysis is employed in testing the relationship between the independent variables and the dependent variable. The results showed that males, single, young persons, nonnon-Malay Bumiputeras and individuals who work in the public sector s uffer more from underemployment in Sabah.