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KULIAH MINGGU 2POPULATION, EMPLOYMENT AND
HUMAN RESOURCE DEVELOPMENT
Dr. Zainizam Zakariya
Tel : 015-48117727
Room no: P12, Aras 3 B10, KSAS
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OUTLINE
• Population and Growth in Malaysia
• Labour Force, Employment, Unemployment
• Foreign Labour Market
• Government Policy on Human ResourceDevelopment
• Issues of HRD
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Population and Growth in Malaysia
• Census 2010
▫ the total population of Malaysia was 28.3m,increased from 13.8m in 1980
▫ Growth rate of population in a decrease trend
average annual population growth rate of 2.0% for2000-2010 compared to that of 2.6% in during1980-1990 and 1991-2000.
▫ Population density stood at 86 persons per skmcompared with 71 persons in 2000
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Population and Growth in Malaysia
2,3423,788
6,279
10,882
13,87918,102
23,275
28,30029,300
0
2.6 2.5
3.9
2.32.6 2.6
2
1.2
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
1911 1931 1957 1970 1980 1990 2000 2010 Feb-13
( ‘ 0 0 0 )
Year
Chart 1 Population growth rate, 1911 qnd 2013
Total population (million) Average annual growth rate
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• Determination of population growth▫ i)Migration
Focus on net migration (NM) – the difference of immigrants and emigrants in a period of time divided(usually) per 1,000 inhabitants. (+) - people entering the country than leaving it
(-) - more people leaving than entering it.
▫ ii) the rate of natural increase (RNI) The RNI is the crude birth rate (CBR) minus the crude
death rate (CDR) of a population RNI = (Birth Rate –Death Rate)
CBR - the number of live births/deaths per 1,000 population
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Figure 1
Net migration rate world, 2008 (CIA Factbook)
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19.4
27.1
36.539.7
42.0 40.9
32.430.6
27.9
23.4
17.5
39.1 32.3 24.118.6 15.8
9.5
6.75.3
4.6
4.5
4.8
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
1911 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010p
| %
Year
Chart 2Birth and death rate, 1911-2010 (per thousand inhabitants)
Crude death rate
Crude birth rate
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• Age▫ Percentage of population under 15 years has been decreasing
continuously 1970 (44.9%), 1991 (36.5%), 27.6 (2010)
▫ Percentage of working age population (15-64 years) has beenincreasing steadily 1970 (52.1%), 1991 (59.8%), 2010 (67.3%) Median age increased to 26.2 years (2010) from 21.9 years (1991)
▫ The dependency ratio dropped from 59.2% (2000) to 48.5%
(2010)• State
▫ Selangor is the most populous state (5.46m), followed up by Johor (3.35m) and Sabah (3.21m) represent 42.4% of the population in Malaysia
▫ The least populated – WPP (72,413) and WPL (86,908)
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Figure 2
Global Median Age, 2005 (CIA Factbook)
http://en.wikipedia.org/wiki/List_of_countries_by_median_age
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Source: Census 2010, DOS
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3,348
1,257
1,540
821
1,021
1,501
2,352
231
1,561
3,206
2,471
5,462
1,035
1,674
88
72
0 1,000 2,000 3,000 4,000 5,000 6,000
Johor
Kedah
KelantanMelaka
Negeri Sembilan
Pahang
Perak
Perlis
Pulau Pinang
Sabah
Sarawak
Selangor
Terengganu
WPKL
WPL
WPP
(‘000)
Chart 3Population by state, 2010
Source: Census 2010, DOS
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• Gender▫ Men have been outnumbered women (see Chart 4)
ratio of males-females increased to 106 (2010) from 101 (1980) In 2010 - the ratio was relatively high for Pahang (113) and
Johor (112) but men were outnumbered by women counterpartin WPP (89) and Perlis (97)
• Ethnic▫ 4 major ethnic groups (see Chart 5)
Bumiputera (67.4%), followed up by Chinese (24.6%), Indians(7.3%) and Others (0.7%) Malay has been the predominant ethnic , >60% over the period
of 1911-2010. the Ibans – 30.3% of the total citizens in Sarawak (DOS, 2010) Kadazan/Dusun made up 25% in Sabah (DOS, 2010)
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1,4712,225
3,238
5,266
6,589
8,877
11,853
14,562
871 1,563 3,041
5,173
6,547
8,686
11,421
13,771
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1911 1931 1957 1970 1980 1991 2000 2010
( ‘ 0 0 0 )
Year
Chart 4
Total population by sex, 1900-2010
Male
Female
Source: Census 2010, DOS
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Source: Census 2010, DOS
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56.4
51.6
55.6
59.2
57.2
61.2
67.4
31.2
38.5
33.9
31.7
27.3
24.5
24.6
10.8
8.8
9.0
8.4
7.8
7.2
7.3
1.6
1.1
1.5
0.6
7.8
7.1
0.7
0% 20% 40% 60% 80% 100%
1911
1957
1970
1980
1991
2000
2010
%
Y e a r
Chart 5
Population by ethnic group, 1911-2010 (%)
Malay/Bumiputera
Chinese
Indian
Others
Source: Census 2010, DOS
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• Strata▫ In tandem with Malaysia’s rapid development, the
proportion of urban population has been outnumberedthe rural population In 1957 (26%), 1980 (34%), 2010 (71%) In 2010
WPKL and WPP – 100% level in urbanisation PP and Selangor – 91%
Pahang & Perlis – 51% Kelantan – 42%
• Non-citizens▫ Made up 9% of the total population in Malaysia in
2010 as compared to 4.3% in 1991
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Think about this
• Discuss the advantages anddisadvantages of Malaysia Population
Policy Towards 70 Million Population by 2020
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Labour Force and Employment• Labour Force
▫ refers to those who, during the reference week, are in the15 -64 years (at last birthday) and who are either
employed or unemployed (LFS, 2011) • Employed
▫ All persons who, at any time during the reference weekworked at least one hour for pay, profit or family gain (asan employer, employee, own- account, worker or unpaid
family worker).▫ Also considered as employed persons who did not work during the reference week due to
illness, injury, disability, bad weather, leave, labour disputeand social or religious reasons but had a job to return to.
those on temporary lay-off with pay who would definitely be
called back to work.
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• Underemployed
▫ Employed persons who had worked < 30 hours
per week due to the nature of their work or due toinsufficient work and are able and willing toaccept additional hours of work
• Over-employed
• Undereducation and overeducation
• Overskilling and underskilling
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• Unemployed - Classified into two groups:▫ The actively unemployed
all individuals whodid not work during the reference
week but were available for work and actively looking for work during the reference week.
▫ Inactively unemployed persons persons who did not look for work because they believed
no work was available or that they were not qualified;
persons who would have looked for work if they had not been temporarily ill or had it not been for bad weather;
persons who were waiting for result of job applications;and
persons who had looked for work prior to the referenceweek.
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• Outside labour force
▫ All persons not classified as employed or
unemployed as stated above.
▫ Includes housewives, students (including thosegoing for further studies), retired, disabled persons and those not interested in looking for a job.
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Population
0-14 years old 15-64 years old
Employment
Fullemployment
Underemployment
Unemployment
Actively lookingfor a job
Inactively looking for a job
> 64 years old
Chart 6Population, employment, unemployment and outside labour force
Source: LFS, 2012
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Year Number (‘000)
Labour force Employed Underemploy
ed
Unemployed Outside
labour force
1982 5,431.4 5,249.0 401.9 182.4 2,944.6
19855,990.1 5,653.4 696.5 336.8 3,124.9
19907,000.2 6,685.0 599.1 315.2 3,519.7
1995
7,893.1 7,645.0 482.4 248.1 4,297.72000
9,556.1 9,269.2 491.4 286.9 5,065.1
200510,413.4 10,045.4 484.4 368.1 6,048.2
201011,517.2 11,129.4 504.0 387.9 6,855.9
Table 1
Principles of statistics of the labour force, Malaysia, 1982-2010
Source: LFS, 2012
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• Labour force participation rate (LFPR) LFPR is defined as the ratio of the labour force to
the working age population (15 to 64 years),expressed as percentage.
• Unemployment rate (U)
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64.9 65.7 66.5 64.7 65.463.3 62.9
84.8 85.6 85.3 84.3 83.080.0 78.9
42.245.9
47.844.7
47.2 45.9 46.4
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
1980 1985 1990 1995 2000 2005 2009
P e r c e n t ( % )
Year
All
Male
Female
Chart 7Labour force participation rate by gender in Malaysia, 1980 - 2009
Source: LFS, 2012
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3.43.8
5.05.6
7.4 7.3 7.2
5.7
4.5
3.74.1
3.12.5 2.4
3.2 3.4
3.0
3.5 3.5 3.6 3.5 3.5 3.3 3.2 3.33.7
3.4
7.7
9.5
11.912.3
13.7
12.5
14.0
10.4
9.0
7.3
8.8
6.36.6
5.95.7
5.3 5.35.6 5.4 5.4
6.0
4.8 4.6 4.94.4 4.4 4.5
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
1 9 8 2
1 9 8 3
1 9 8 4
1 9 8 5
1 9 8 6
1 9 8 7
1 9 8 8
1 9 8 9
1 9 9 0
1 9 92
1 9 9 3
1 9 9 5
1 9 9 6
1 9 9 7
1 9 9 8
1 9 9 9
2 0 0 0
2 0 01
2 0 02
2 0 0 3
2 0 0 4
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 01 0
%
Figure 3Unemployment and underemployment, 1982-2010
Unemployment rate Underemployed
Source: LFS, 2012
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Foreign Labour • LFS 2011- (DOS, 2012)
▫ the LFPR for Malaysian citizens registered to
62.4%, in contrast to 80.7% for non-Malaysiancitizens
Male/female (Malaysian) – 77.6%/46.8%
Male/female (non-citizens) - 94%/60%
▫ 14% of LF in 2011 was foreign person
▫ 14% of employed persons were foreign workers
15.4% - males
11.2% - females
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Sector 2000 2002 2004 2006 2008
Total % Total % Total % Total % Total %
Maid 177,546 22.0 232,282 22.0 285,441 19.4 310,662 16.6 293,359 14.2
Manufacturing 307,167 38.1 323,299 30.6 475,942 32.4 646,412 34.6 728,867 35.3
Plantation 200,474 24.8 298,325 28.2 384,473 26.2 354,124 18.9 333,900 16.2
Construction 68,226 8.5 149,342 14.1 231,184 15.7 267,809 14.3 306,873 14.9
Services 53,683 6.7 64,281 6.1 93,050 6.3 166,829 8.9 212,630 10.3
Agriculture 123373 6.6 186967 9.1
Total 807,096 100 1,057,156 100 1,470,090 100 1,869,209 100 2,062,596 100
Table 2
Number of Foreign Workers in Malaysia by Sector, 1999 - 2008
Source: Ministry of Home Affairs
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Government Policy on Human ResourceDevelopment• Starting from 6th MP (1996-2000), human
resource development has been properly
planned via:▫ Education
▫ Skills and Training
▫ Role of the Private Sector in Education andTraining
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• Education▫ Aim – to produce more skilled and competent workers to
meet K-economy, Vision 2020, NEM primary schools increased from 7,601 in 2005 to 7,664 in 2009
secondary schools increased from 2,028 in 2005 to 2,219 in2009
there has been an increase in the number of public HEIs from just 21 in 1990 to 81 in 2010.
▫ boost enrolments in HEIs by nearly 80% between 1995 and2009, i.e. from 362,147 to 949,653.
▫ 1/3 of the total state budget was allocated to education between the period of 2001 and 2010 with 48% of the education budget spent on tertiary education
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37,84060,030
75,709
170,794
244,527
25,15032,020
48,888
92,304
148,025
0
50,000
100,000
150,000
200,000
250,000
300,000
1985 1990 1995 2000 2005
N u m
b e r o f s t u d e n t s
Year
Degree
Diploma
Chart 8Enrolment by type of education from public higher education institutions, 1985-2005
Source: Zainizam, 2012
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27,422
52,84065,470
136,013
292,378
25,634
37,42039,870
76,159
122,733
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
1985 1990 1995 2000 2005
N u m b e r o f g r a d u a t e s
Year
Degree
Diploma
Source: Zainizam, 2012
Chart 9Number of graduates (output) by type of education from public higher education
institutions, 1985 -2005
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• Skills and Training▫ There has been a considerable increase in public
training institution centre at such as ADTC, PusatGIAT MARA, ILP Aim – to produce more and better trained
manpower to meet the industrial needs of the nation Science and technical
compliments for education as suggested by HCT
▫ Allocation for each MP and State budget MP - increased from 6% in 1995 to 20.6% in 9th MP State budget – 16% (including education) in 2012
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• Role of the Private Sector in Education and Training• The Malaysian government – at least 40% of the country’s
population in the age range of 19-24 years have access tohigher education by 2020
• the Malaysian government passed in 1996 the PrivateHigher Education Act (PHEA) in Parliament to allow agreater role for the private sector in education provision.
• Has had a direct impact on the development of private HEIs• between 1995 and 2005, PHEIs increased substantially from
156 to 559 (Lee, 1999; Ninth Malaysia Plan, 2006 - 2010).
• about 40% of the total enrolments in 2009 went to privateinstitutions, which had increased from 35% in 1995 (Ministry of Higher Education, 2010).
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14.1 9.8 8.7 5.6 4.6 3.9
39.7
34.6
28.025.2
20.917.6
39.4
46.852.2
54.755.4
55.1
6.8 8.8 11.1 14.419.0
23.3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1985 1990 1995 2000 2005 2009
tertiary
secondary
primary
informal
Year
Chart 10The quality of labour force by educational attainment, Malaysia, 1985-2009 (%)
Source: LFS, 2012
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Issues of HRD• Quantitative issues
▫ Shortage of skilled workers, i.e. – S&T (WB, 2009)▫ graduate unemployment
30-35% of the total graduates bet 2001 and 2010• Qualitative issues▫ Quality of workers produced - lack of soft skills▫ mismatch – overeducation, overskilling and underskilling
Annie and Hamali (2006), Lim et al. (2008) and Ishak et al. (2008) WorldBank (2009) , Zainizam (2012) – Zainizam (2012) - OE (18-22%), OS (30%), US (80%)
• Gender imbalance▫ Women are more educated than men
28% vs 18% - DOS, 2012▫ Left behind when it comes to educational-work transition
LFPR - 60% vs 70% - 2011 (DOS, 2012) Over-represented in Sales and Service (25%) and Clerical jobs (18%)
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67,89677,085
70,668
57,058
73,597 68,972
39,078
46,415
44,188
35,827
39,54133,366
19,632
18,47724,818
20,408
23,628
25,438
54 54
51 50
54 54
3133
32 32
29
26
1613
18 18 17
20
0
10
20
30
40
50
60
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2002 2003 2004 2005 2006 2007
N u m b e r o f g r a d u a t e s
P e r c e n t ( % )
TechnicalScience
Arts
Arts
Science
Technical
Year
Chart 11
Number and the percent of graduates by field of from public and private HEIs, 2002 - 2007
Source: Zainizam, 2012
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25
49
33 35
75
51
67 65
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Malaysia Singapore Taiwan Korea
low-skilled
High-skilled
Chart 12
High- and low-skilled labour in 2007 across four Asian countries (%)
Source: WB, 2009, 2010
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1114.5
22.4 22.725.8
70
58.3
39.2
20.4
18.2
33.2
27.3 27.9
20.2 15.5
19.319.2
16.7
8.86.4
3.7 3.5
0
10
20
30
40
50
60
70
80
No qualification Primary Lower secondary Upper secondary College diploma University
%
Level of education
Overeducated
Undereducated
Moderately overskilled
Severely overskilled
Chart 13
The incidence of educational-skills mismatch across level of educational
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18.2 18.8 20.8 15.3 18.116.7 13.7 14.4 18.6
28.331.4 28.4
30.3 26 34.928
28.332.3
24.2
22.224.3
19.2
19.920.9 13.7 19.9
24.8
9.65.9 8.7
2.77.2 5.4 5
2.57.3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Foodprocessing
Textiles Garments Chemical Rubber andPlastics
Machinery and
Equipments
Electir andElectronics
Auto parts Wood andFurniture
Type of industry
Severely overskilled
Moderately overskilled
Undereducated
Overeducated
Chart 14
The incidence of educational-skills mismatch across industry
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Source: MOHE, 2009 - http://www.mohe.gov.my/web_statistik/statistik_pdf_2008_05/ipta_2-20.pdf
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Source: MOHE, 2009 : http://www.mohe.gov.my/web_statistik/statistik_pdf_2008_05/ipta_2-19.pdf
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Source: LFS, 2012
Table 3Number and percentage of employed persons by occupation and sex, 2011
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Weekly Assignments• From your point of view, what factors contribute
to the incidence of graduate unemployment in
Malaysia? Discuss some actions taken by thegovernment to minimise such incident in future?
• Explain what issues are faced by Malaysia’seducation system in managing the transition of those who complete their studies as they enterthe world of world.