Types of Unemployment in Malaysia

1.0 Unemployment rate

Unemployment is meaning that there have a number of people who are actively seeking work but failed to get the job within the past two week. According to Malaysia Bureau of Labor Statistics, if the people who are students, housewife, patient, maternity or retirees will not count into the unemployment rate. There have different type of unemployment happen in Malaysia which is frictional unemployment, structural unemployment, disguised unemployment and economic cyclical unemployment.

1.1 Cause of unemployment

1.1.1 Frictional Unemployment

In many type of unemployment, frictional unemployment is a transitional or temporary unemployment. Imperfect of market information, unexpected disaster, people moving and personal factors are the cause of frictional unemployment. When Malaysia happen frictional unemployment, the main cause are:

a) Lack of Knowledge And Information of Employment Market

There might have a lot of fresh blood worker in employment market. Because of this, most of them are lack of work experience and ignorance in employment market. So they need a period of time to find a job. For example, school dropouts and graduates of various levels.

b) Unexpected Disaster

Unexpected disaster will happen due to human negligence or natural disasters. It might cost the plant collapse or take some time to rebuild. The plant's employees will lose their jobs. For example, fires and floods.

c) Strike

A group of workers dispute with manufacturers. If the manufacturers fail in negotiation, it will lead to strike. The manufacturers will not pay wages to workers who are on strike. Thus that group of workers will be considering as unemployment. In addition, Different types of work will have different unions to protect employees. For example, worker can not satisfy in their salary.

1.1.2 Structural Unemployment

Structural unemployment is mean that the supply of labour or the demand of the labour are not match in the...