Categories: Workplace

Skills-Related Underemployment on the Decline

The skills-related underemployment (SRU) rate has continued to fall in line with improvements in the country’s education level, said Deputy Economy Minister Datuk Hanifah Hajar Taib. SRU is defined as tertiary-educated individuals working in semi-skilled and low-skilled jobs.

Hanifah said the SRU rate stood at 37% in the second quarter of 2024, in line with high-income nations such as South Korea (38%), Australia (32%), the United Kingdom (28%), and the United States (30%).

“The underemployment rate of STPM holders is 55.8%, while for degree holders, the rate is lower at 26.9%,” she said during the question-and-answer session in the Dewan Rakyat today.

She was responding to a supplementary question from Datuk Mohd Shahar Abdullah (BN-Paya Besar) on the government’s efforts to address the mismatch between labour supply and demand, particularly among graduates with a cumulative grade point average (CGPA) of 3.5 and above who qualify for jobs in high-growth sectors.

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