Causes of Unemployment Essay

1083 Words Apr 8th, 2012 5 Pages
Causes of Unemployment
In Malaysia, the unemployment rate is considered low compared to the early years such as 1986 where the unemployment rate reached as high as 7.6%. Today the unemployment rate is still affected by many factors and in order to make sure it doesn’t reach as high as before, we need to find out the causes of unemployment so that we can provide a solution to the cause of it.
Foreign labor force with lower wage or salary
Redundant workers and fresh graduates with qualifications for their respective job sectors searches for jobs with acceptable wage or salary. This will delay their ability to work period resulting in firms that need labor to be desperate and start demanding for foreign labor force with low wage or
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| . | . | . | . | . | . | . | . | . | Total | 409,660 | 100.0 | 807,096 | 100.0 | 849,829 | 100.0 | 1,067,529 | 101.0 | 1,336,980 | 107.8 |

| 2004 | 2005 | 2006 | 2007 | 2008 | Sector | Total | Percentage (%) | Total | Percentage (%) | Total | Percentage (%) | Total | Percentage (%) | Total | Percentage (%) | Maid | 285,441 | 19.4 | 320,171 | 17.6 | 310,662 | 16.6 | 314,295 | 15.4 | 293,359 | 14.2 | Manufacturing | 475,942 | 32.4 | 581,379 | 32.0 | 646,412 | 34.6 | 733,372 | 35.9 | 728,867 | 35.3 | Plantation | 384,473 | 26.2 | 472,246 | 26.0 | 354,124 | 18.9 | 337,503 | 16.5 | 333,900 | 16.2 | Construction | 231,184 | 15.7 | 281,780 | 15.5 | 267,809 | 14.3 | 293,509 | 14.4 | 306,873 | 14.9 | Services | 93,050 | 6.3 | 159,662 | 8.8 | 166,829 | 8.9 | 200,428 | 9.8 | 212,630 | 10.3 | Agriculture | . | . | . | . | 123,373 | 6.6 | 165,698 | 8.1 | 186,967 | 9.1 | Total | 1,470,090 | 100.0 | 1,815,238 | 100.0 | 1,869,209 | 100.0 | 2,044,805 | 100.0 | 2,062,596 | 100.0 |
Source: Ministry of Home Affairs
As we analyze through the years in the respective sectors, we find that the highest total by percentage is the manufacturing sector. In the manufacturing sector, labor force power needed is indeed higher compared to other sectors and so for the

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