Job demand and candidate skills show growing mismatch

Nicholas Lam, Managing Director, Jobstreet by SEEK Malaysia

DOSM’s latest data shows that Malaysia’s labour market remains broadly resilient. Employment continued to grow in July, while the unemployment rate remained unchanged from the previous month at 3.0%.

Jobstreet’s platform data provides a closer look at the composition of current hiring activity. Manufacturing, transport and logistics accounted for the largest share of advertised jobs at 12.9%, while retail and consumer products represented 8.4%. This broadly corresponds with DOSM’s findings that employment continued to expand in manufacturing and across the services sector.

However, the areas in which employers are advertising roles and where candidates are looking for work do not always align. Retail and consumer products represented 8.4% of advertised roles, but only 5.3% of registered candidate classifications. Conversely, administration and office support accounted for 11.3% of registered candidates, compared with 7.0% of advertised roles.

As Malaysia’s labour force grew by 0.1% to 17.37 million persons in July, this data highlights an important challenge beneath the positive headline figure. Greater labour force participation and continued employment growth do not automatically mean that candidates’ existing experience aligns with the areas in which opportunities are available. The next challenge is therefore not simply supporting employment growth, but helping workers keep pace with where demand is concentrated.

Job demand

For jobseekers, particularly those earlier in their careers who may have less experience to draw on, targeted upskilling can help bridge this gap. Building transferable capabilities that are relevant across different roles and industries can give candidates more ways to access available opportunities, rather than limiting their search to positions that correspond exactly with their previous experience.

Employers also have an opportunity to reconsider how they assess talent. Placing greater emphasis on skills and potential, alongside clearer pathways for training and development, can help businesses tap into candidates whose experience may not be an exact match but who have the capabilities to grow into the role. 

A resilient labour market is not only one that creates opportunities, but one that helps people move towards them. Improving the connection between available roles and potential talent will require both jobseekers and employers to look beyond exact experience matches and recognise how skills can transfer across Malaysia’s changing economy.