Adam said graduate underemployment remains a recognised challenge, but the trend has shown improvement, declining from 33.8% in 2021 to 32.2% in 2024.
PETALING JAYA: The growing number of graduates entering Malaysia’s labour market at a pace faster than the creation of high-skilled jobs has contributed to graduate underemployment, the Dewan Rakyat was told today.
Deputy Higher Education Minister Adam Adli said the issue is influenced not only by domestic conditions but also by global economic shifts and changing labour market dynamics.
“The increase in the number of graduates, which is faster than the creation of high-skilled jobs, has contributed to this issue. At the same time, changes in the global market and economic conditions have also had an impact,” he said.
He added that the situation could not be simplistically described as a government failure, as it involves complex structural factors within the economy and labour market.
Adam said graduate underemployment remains a recognised challenge, but the trend has shown improvement, declining from 33.8% in 2021 to 32.2% in 2024.
“So the challenge is still large, but the current trend is declining, not worsening. Therefore, it cannot be said to be a failure. Instead, this is an issue that is more complex,” he said.
He was responding to Datuk Seri Shahidan Kassim (PN-Arau), who questioned whether the 32.2% rate of graduates working below their qualification level reflected a failure of the Madani administration.
Adam said a total of 873,765 Malaysian graduates had completed their studies over the past three years at public and private higher education institutions, including universities, polytechnics and community colleges.
Citing the Higher Education Ministry’s Graduate Tracer Study System, he said graduate employability had improved from 90.9% in 2023 to 92.5% in 2024.
He added that the quality of graduate employment has also improved, with the proportion of diploma and higher-level graduates employed in skilled jobs rising to 72.1% in 2025 from 68.3% in 2023.
In a supplementary response, Dato Dr Richard Rapu @ Aman anak Begri (GPS-Betong) asked whether the ministry would review student intake for programmes that consistently produce graduates unable to secure jobs matching their qualifications.
Adam said the ministry is already realigning academic programmes in public universities while working with private higher education institutions to ensure courses remain relevant to labour market needs.
“Following the launch of the Malaysia Higher Education Plan, we are ensuring programme realignment in public universities, while also working with private institutions so that offerings are aligned with labour market needs,” he said.
He added that new critical fields will be introduced in line with economic demand, while outdated programmes that no longer align with current developments will be reviewed.
