Ini Kali La

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|Group Member Name |MOHD HISYAM BIN NILAM (KK1190541) |
| |EL NAJEEB BIN ABDUL RHAHMAN (KK1190675) |
| |NURUL HAZWANEEZ BINTI MOKHTAR (KK1190869) |
| |MOHAMAD ALIFF BIN PERMAN (KK1190531) |
| | |
|Course Code and Name |BGB 2013/ HUMAN RESOURCE MANAGEMENT |
| | |
|Assignment Title |ASSIGNMENT 3 |
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|Submission Date |6 DECEMBER 2012 |
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|Name of Lecturer |MR.AHMAD OZHAIR KHAIRIL ALAUDIN |

For Academic Counter Staff:

Collected by: Received Date and Stamp:

Remarks:

Explain why the unemployment rate is Sabah is high

The unemployment rate can be defined as the number of people actively looking for a job divided by the labour force. Changes in unemployment depend mostly on inflows made up of non-employed people starting to look for jobs, of employed people who lose their jobs and look for new ones and of people who stop looking for employment. Related terms are the labour force, the participation rate and the employment rate. The labour force is defined as the number of people employed plus the number unemployed but seeking work. The non-labour force includes those who are not looking for work, those who are institutionalised such as in prisons or psychiatric wards, stay-at home spouses, children, and those serving in the military. The participation rate is the number of people in the labour force divided by the population of working age that is not institutionalised. The employment rate is defined as the number of people currently employed divided by the population of working age.

In 2010, Sabah has the highest unemployment rate which is 5.6% compared to the National unemployment rate of 3.4% based on the statistics. The reason that lies behind why Sabah has the highest unemployed rate can be in different kind of form such as foreigner workers, the wages, the level of education and sort on.

In the foreigner factor, the employer is Sabah will usually hire the foreigner because the wages or the salary for the foreigner worker is cheaper than the wages and salary for the local people. This will eventually cause the opportunity for the local people to get the job reduce. The foreigners are willing to take any work because they do not have to pay for tax and others. So, mostly in Sabah, the employer will rather hire the foreigner than our local people. Due to this, the unemployment of Sabah will eventually keep on rising due to the opportunity of work have been taken by the foreigner.

The others factor are such as the wages and salary factor. Well as we all know, the salary in West Malaysia such as Kuala Lumpur offer a higher salary for the same job. For example, a manager of a restaurant in Kuala Lumpur can manage to get up to RM 2,000.00 or more per month while the managers of a restaurant in Sabah usually will pay the manager for approximately RM 1, 500.00 or more which also means that they are doing the same job scope but they didn’t get the same salary. This eventually attracts most of the Sabah local people to work in Peninsular Malaysia because the salaries are higher than the salary that they can get in Sabah. This will also eventually increase the rate of unemployment rate of Sabah because when they are working in other place and not in Sabah.

Besides that, Peninsular Malaysia had wider job opportunities than Sabah do. This is because the headquarters of corporate and big company in Malaysia usually located in Peninsular Malaysia. Due to this, they offer a bigger salary and bigger job scopes in their industries. For example in the fast food industry, in Peninsular Malaysia, there are many different kind of fast food restaurant that Sabah don’t have such as Domino’s Pizza and sort on. Commonly, the investor from outside Malaysia will usually invest their investment in the capital city of Malaysia which is Kuala Lumpur because there is where all the franchises business located. Besides that, there are many markets for the investor to invest in Kuala Lumpur because it is like the heart of Malaysia.

The level of education also played the roles in the increase of unemployment rate in Sabah. For example, the level of education in Sabah is lower than the level of education that Peninsular Malaysia had. In Sabah, there are many rural areas in Sabah. In these rural areas, some of them have to use boat to go to school or in certain cases they have to walk for more than 1 hour to reach their school. From this, we can say that the level of education is Sabah is low. When the educations of the peoples are low, this resulted in low knowledge of Sabah workers. Employer usually wanted to hire knowledgeable worker to work with them. Without the knowledge that they required to have, it is hard for the local people to get a job which this can also cause the unemployment rate to increase.

Besides that, the University students are the main reasons that the unemployment rate in Sabah increase. For example, there are many University or colleges that offer the nurse course, pharmacy, lab assistants or we can say in the medicine industry. When they graduated, there are too many nurses and in Sabah only, there is not many hospital or clinics compared to Peninsular Malaysia. This also can cause the fresh graduated to be categorized in the unemployment people thus this can resulted in the increase of unemployment rate. Besides that, the market for career is limited in Sabah. Besides that, new graduates are high and tend to seek jobs that can quickly put them in the main stream of work which means they are very selective on the type of organizations.

For example, a University graduate that took psychology course will found out that it is hard for them to get a job relating to the studies that they have been through. In Sabah, there is less therapy centre compared to Peninsular Malaysia. This means that in order for them to fulfil their dreams to become a therapist will only become reality if they work in Peninsular Malaysia since Sabah had a limited market on that particular course or career. Thus, this can resulted in the increase of unemployment rate in Sabah.

Recommend measures that could be taken by the Sabah State Government to reduce the high rate of unemployment in the state.

There are many measures or steps that the Sabah State Government can use to reduce the unemployment in the states. These measures are vital to help Sabah to reduce their unemployment rate.

These measures are such as review the academic curriculum of universities to ensure practicality and applicability to the industry, in this particular measures, Sabah state should ensure that the graduates deserved to work in that field or we can say that is the graduate are qualify to work in the job scopes because there is some cases that the employer simply hired random people and cause the really qualified candidates to lose the opportunity to take the job.

Besides that, Sabah State Government should introduce certification courses in the universities especially the technical certification, Introduce more soft skills into the university curriculum e.g. personality enhancement course, Include industry work experience as part of university curriculum, Continuous dialogue between academicians and industries to ensure relevance of contents taught and lastly benchmark for students pursuing tertiary studies may need to be reviewed as not all people may wish to continue their studies in universities. Instead some form of vocational studies should be introduced for these people.

Besides that, SEDIA ( Sabah Economic Development & Investment Authority ) should implement more strategies to reduce the unemployment rate in the states such as creating more job opportunity in all types of industries such as tourism, agriculture, manufacturing and lastly logistics. This is because the strategic thrust in addressing unemployment is economic growth and development

References

1. Sabah Economic Development & Investment Authority. Retrieved December 2, 2012 from http://www.sedia.com.my/SDC_Incentives.html

2. Murip Morpi. Robust economic data for Sabah. Retrieved December 2, 2012 from http://www.theborneopost.com/2012/07/11/robust-economic-data-for-sabah/

3. Jenne Lajiun . Tax incentive for companies adopting 1Malaysia Training Scheme. Retrieved December 2, 2012 from http://www.theborneopost.com/2012/10/03/tax-incentive-for-companies-adopting-1malaysia-training-scheme/#ixzz2E6nO3g35

References: 1. Sabah Economic Development & Investment Authority. Retrieved December 2, 2012 from http://www.sedia.com.my/SDC_Incentives.html 2. Murip Morpi. Robust economic data for Sabah. Retrieved December 2, 2012 from http://www.theborneopost.com/2012/07/11/robust-economic-data-for-sabah/ 3.  Jenne Lajiun . Tax incentive for companies adopting 1Malaysia Training Scheme. Retrieved December 2, 2012 from http://www.theborneopost.com/2012/10/03/tax-incentive-for-companies-adopting-1malaysia-training-scheme/#ixzz2E6nO3g35