Over 26% of degree holders work outside their fields due to skills gap: Report

PETALING JAYA: In Malaysia, earning a degree today no longer guarantees a career in one’s specific field.

Many graduates find themselves working in jobs unrelated to their studies, with some abandoning their dreams due to financial and market constraints.

According to the World Bank’s Malaysia Economic Monitor report released in October, 26.9% of Malaysian graduates in 2022 were underemployed, up from 8.6% in 2010.

Over a quarter of degree holders were working in roles that did not match their qualifications.

The report attributes the issue to inefficient job matching, a disconnect between education and industry needs, and a lack of soft skills or other competencies outside formal qualifications.

“With degree holders comprising 48.6% of Malaysia’s highly educated workforce in 2022, the rise in underemployment is a troubling trend, pushing many graduates into careers outside their fields of study,” the report said.

Randstad Malaysia country director Fahad Naeem said graduates often face stiff competition, particularly when attempting to pivot to careers outside their field of study.

Headquartered in the Netherlands, Randstad is one of the world’s largest recruitment agencies.

Fahad explained that Malaysia is a talent-scarce market, meaning employers tend to prioritise candidates with skills or internship experience in relevant fields.

“Fresh graduates who want to transition to industries outside their degree may face higher resistance, requiring them to apply for more jobs or attend more interviews before securing a role,” he said.

He added that sales-related jobs and roles in digital marketing or design are increasingly popular among graduates from unrelated fields as they have lower barriers to entry.

“Employers often prioritise soft skills such as communication, presentation and stakeholder management for these roles. Some companies also provide training and field experience to upskill employees.

“Candidates may need additional courses to bridge skills gaps before job hunting, but with the right motivation and support, fresh graduates can successfully transition into unrelated fields.”

For some graduates, the transition can open unexpected opportunities.

Nabilah Syahmina Hayazi, 26, a marketing assistant who studied occupational safety and health (OSH), said job hunting in her field is highly competitive.

“There are opportunities for graduates in OSH, especially as the importance of safety and health grows. However, many job offers require years of experience, which can be tough for fresh graduates.”

She added that although working in a different field, she greatly enjoys her role and has no regrets about taking a course in OSH.

“I don’t regret my choice of study. If given the chance, I would still work in the field.

“Though it wasn’t planned, my marketing internship allowed me to explore new skills and discover a passion for the field. I’m grateful for the experience, which has shaped my career and motivated me to pursue further opportunities in this area.”

For others, the decision to leave their field of study is less about passion but more about practicality.

Muhammad Irfan Asyraf Shamshul Baharin, 25, a journalism graduate who now works in customer service, said financial needs pushed him to prioritise stability over passion.

“I love journalism, but it’s not as sustainable or promising as I thought it would be. Financial needs were a big issue. There’s no point in doing what you love if it barely pays the bills. We live in a generation where needs outweigh wants.”

Although he changed careers, Muhammad Irfan credits his journalism degree for shaping his communication skills, which have been crucial in his current role.

“I’m grateful my communication skills are strong. They’ve been a huge asset in customer service, where interaction is key.”

Muhammad Irfan advised students to carefully research their options before deciding on a field of study.

“Determine what you truly want from the beginning, whether it’s passion or financial security, and find a proper balance.

“Take cognizance of unemployment rates and salaries in your chosen field. While passion is important, in Malaysia, you must also consider the realities of the job market,” he said.