Graduate Employability in Asia PDF

UNESCO Bangkok
Asia and Pacific Regional Bureau

for Education
United Nations
Educational, Scientific and
Cultural Organization
GRADUATE EMPLOYABILITY IN ASIA

GRADUATE EMPLOYABILITY IN ASIA
GRADUATE EMPLOYABILITY IN ASIA i

Published by UNESCO Bangkok
Asia and Pacific Regional Bureau for Education
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UNESCO 2012
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ISBN: 978-92-9223-395-2(Electronic Version)
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APE/12/OS/011-E
ii GRADUATE EMPLOYABILITY IN ASIA

Contents
Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v
Employability of graduates in Asia:
an overview of case studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Graduate employability in Indonesia . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Employability of graduates in Malaysia. . . . . . . . . . . . . . . . . . . . . . . . 24
Employability of graduates in the Philippines . . . . . . . . . . . . . . . . . . . 38
IT graduates employability: Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . 59
Appendix 1: Enhancing graduate employability at the International
Islamic University Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
GRADUATE EMPLOYABILITY IN ASIA iii

Acronyms
ACS Alumni and Career Services
ADB Asia Development Bank
AEC ASEAN Economic Community
APEID Asia-Pacific Programme of Educational Innovation for Development
ASEAN Association of Southeast Asian Nation
BLES Bureau of Labor and Employment Statistics
BPO Business Process Outsourcing
CCAC Co-curricular Activity Centre
CEDF-IT Cebu Educational Foundation for IT
CGPA Cumulative Grade Point Average
CHED Commission on Higher Education
CSO Civil Society Organization
FMM Federation of Malaysian Manufacturers
FSP Finishing School Programme
HEI Higher education institution
ICT Information and Communication Technology
IIUM International Islamic University Malaysia
ILO International Labour Organization
IPPTN Institut Penyelidikan Pendidikan Tinggi Negara
IT Information Technology
LFS Labour Force Survey
MEF Malaysian Employers Federation
MNC Multi-national Corporations
MoHE Ministry of Higher Education
MTPDP Medium-Term Philippine Development Plan
MUET Malaysian Universities English Test
NCCAC Non-credit Co-curricular Activity Centre
NGO Non-governmental Organization
NSCB National Statistical Coordination Board
NSO National Statistics Office
PBL Problem-based Learning
PRC Professional Regulation Commission
PSDC Penang Skills Development Centre
PWD People with a Disability
RAP Rapid Assessment Process
SME Small Medium Enterprise
SMI Small medium industry
UI Universitas Indonesia
UiTM Universiti Teknologi MARA
UNESCAP United Nations Economic and Social Commission for Asia and the Pacific
UNESCO United Nations Educational, Scientific and Cultural Organization
UTM Universiti Teknologi Malaysia
UUM Universiti Utara Malaysia
iv GRADUATE EMPLOYABILITY IN ASIA

Preface
We live in a rapidly changing world with diverse demands and challenges. Governments are increasingly
looking to universities to produce human resources with the right kind of capacities, skills and knowledge
to meet 21st century needs. They also call on universities to facilitate the shift to knowledge-based
economy and high-technology through effective linkages between research and industry to ensure that
their countries have a competitive edge in the global market.
Preparing young people to enter the labour market has therefore become a critical responsibility for
universities. However, the relevance of their programmes and the employability of their graduates are
posing an increasing challenge for the universities, particularly in view of two sets of statistics: enrolment
and youth unemployment rates. According to UNESCOs data, enrolment in tertiary education more than
doubled over the past two decades from 68 million in 1991 to 151 million in 2008. At the same time, the
financial crisis that began in 2008 has resulted in increasing unemployment, as highlighted in ILOs Global
Employment Trends reports. The global unemployment rate was 6.2 percent in 2010 compared to 5.6
percent in 2007. According to the 2012 report, young people continue to be the hardest hit by the job
crisis with 74.8 million youth being unemployed in 2011, an increase of more than 4 million since 2007.
With many economies being reported as not generating sufficient employment opportunities to absorb
growth in the working-age population, a generation of young productive workers will face an uncertain
future unless something is done to reverse this trend. To increase the graduates chances of obtaining
decent jobs that match their education and training, universities need to equip their students with the
necessary competencies to enter the labour market and to enhance their capacities to meet specific
workplace demands.
UNESCO Bangkok with the support of Japanese Funds-in-Trust and UNESCO Jakarta coordinated a study
on the employability of university graduates in selected countries in Asia. While there is no one-size-
fits-all formula, findings from the study can help governments and universities in developing policies
and approaches to make their graduates more employable and responsive to labour market demands.
Emerging economies in Asia had weathered the 2008 financial crisis fairly well. However, as the global
economy is expected to continue its slowdown in the short-term, governments in this region recognize
the challenges posed by an ever increasing competitive environment. I hope this report will contribute
to their efforts in meeting these challenges.
On behalf of UNESCO Bangkok and UNESCO Jakarta, I would like to thank the authors for their efforts
in preparing the case studies in their respective countries. I would also like to acknowledge the
contributions of Mr. N.V. Varghese from the UNESCO International Institute for Educational Planning (IIEP)
and other participants of the Regional Seminar on Diversification of Post-secondary Education and the
Employability of University Graduates held in March 2010 who commented on the preliminary findings
of the research study.
Gwang-Jo Kim
Director
UNESCO Bangkok
GRADUATE EMPLOYABILITY IN ASIA v

Employability of graduates in Asia:
an overview of case studies
Lay Cheng Tan and Erika French-Arnold
The global economy favours knowledge and technology. Higher education is increasingly being viewed
as central to national strategies for securing shares in the global market and universities as the repositories
of valuable human capital to support national development.
The contribution of universities to economic development can be seen in three areas: (i) producing and
accumulating human capital; (ii) generating, disseminating, and applying knowledge; and (iii) innovating
and inventing new information and technology. The accelerating shift to high-technology industries
and an information technology economy requires sustained human resource development and training.
Therefore, an appropriate higher education system is critical for preparing a competent workforce.
Reflecting the priority given to develop a knowledge-based economy, tertiary education enrolment had
increased fivefold from 28.6 million in 1970 to 152.2 million in 2007.1 Unfortunately, employment rates
had not kept pace with this trend. The global unemployment rate increased from 5.6 percent in 2007
to 6.2 percent in 2010.2 This has created a highly competitive environment for young people aged 15-
24 years, as can be seen from high youth unemployment rates: 11.8 percent in 2007, 12.8 percent in
2009, 12.6 percent in 2010 and 12.7 percent in 2011.3 These statistics are worrisome because the youth
represent the productive labour force of the countries. If not gainfully engaged for extended periods of
time, many governments will have to deal with a host of issues and challenges facing a lost generation.
The number of unemployed graduates is partly caused by imbalances in the economy. The financial
crisis and economic downturns in recent years are certainly reasons for the reduction in the number of
jobs, but supply-side factors also contributed to the high numbers of unemployed graduates. The kind
of skills required for graduates to enter the labour market need to be clearly understood so that higher
education institutions (HEIs) can foster these skills in their students. Relevance of their programmes plays
an important part in helping their graduates find employment.
Supported by the Japanese Funds-in-Trust, UNESCO initiated a study to examine the employability of
university graduates in selected countries in Asia and the Pacific. The study aimed to analyze the factors
that have an impact on graduate employability, and to identify policies and strategies that have been
put in place by universities to prepare and train their graduates to meet the demands of the workplace.
The study also attempted to highlight the plight of graduates with degrees in information and
communication technologies (ICT). Given the prevalence of technology in all aspects of our lives and the
rapid development in the field, the capacity of universities to adapt and update their programmes and
curriculum accordingly is of particular concern.
This report features three case studies on graduate employability from Indonesia, Malaysia and the
Philippines, and a fourth on the employability of ICT graduates in Malaysia. The studies were conducted
by researchers based in the countries following some guiding principles which could be adjusted to
meet country-specific conditions and priorities:
rThe studies were to focus on the 1st degree-undergraduate level and targeting new graduates (0-12
months after graduation).
rThe emphasis was on the employability of graduates, rather than graduate unemployment.
rPrevious graduate employment research and studies were referred to as far as possible to build on their
findings and experiences.
1 UNESCO-UIS. 2009. Global Education Digest 2009. Comparing Education Statistics Across the World. UIS, Montreal.
2 ILO. 2010. Global Employment Trends for Youth. August 2010. ILO, Geneva.
3 ILO. 2011. Global Employment Trends, 2011. The Challenge of a Jobs Recovery. ILO, Geneva; ILO. 2012. Global Employment Trends,
2012. Preventing a Deeper Jobs Crisis. ILO, Geneva.
GRADUATE EMPLOYABILITY IN ASIA 1

Findings
Concept of employability
There is general consensus that employability refers to a wide range of attributes and competencies that
enable the job seekers to gain and maintain employment such as, but not limited to, the following:
rCommunication skills
rLogical, analytical and problem solving skills
rPersonality, confidence, and integrity
rFlexibility and adaptability
rInnovation and creativity
rTeam spirit
Attempts to use a broader framework for employability take into consideration the roles of both individual
characteristics and labour market conditions. The model developed by McQuaid and Lindsay (2005)4
contains three interrelated components that influence employability:
rIndividual factors that include attributes (e.g., basic social skills), competencies (e.g., motivation,
confidence), transferable skills (e.g., literacy, numeracy, problem-solving, communication, adaptability,
teamworking skills), qualifications and educational attainment.
rPersonal circumstances that relates to the individuals social and household circumstances (e.g., family
and caring responsibilities, access to resources).
rExternal factors that cover labour demand conditions (e.g., macroeconomic factors, vacancy
characteristics, recruitment factors) and enabling support factors (e.g., accessibility of public services
and job-matching technologies).
Seen through this lens, employability is thus an outcome of multiple factors, and dialogues on
employability and employment need to include more stakeholders in addition to HEIs and students.
Graduate unemployment rates and job preferences

Data from the Indonesian Ministry of Manpower and Transmigration show that from 2007-2009 the
number of people seeking jobs exceeded the number of job vacancies for HEI graduates. With a high
percentage of graduates looking for jobs, e.g., 26.7 percent in 2009, Malaysia also faces high graduate
unemployment rates. The Philippines has no recent data on unemployment of new graduates per se,
but the number of unemployed college graduates in general has been increasing according to data from
2007 to 2009. According to the Malaysian study, graduates of technical studies and ICT were more likely
to be employed, but even they found it hard to find jobs as reported in the ICT case study from Malaysia,
with 39.3 percent being unemployed at the time of the survey in 2008.
The oversupply of graduates in some fields was an issue. Students enrolled in over-subscribed
programmes, leading to a glut of graduates unable to find jobs in their areas of specialization, such
as nursing and information technology in the Philippines. The lack of work experience, particularly in
the cutting-edge industries of the IT sector, was another factor tending to limit graduate employment
prospects. Faced with these difficulties, many ended up underemployed or employed in areas for which
they were not trained. Graduates in Indonesia indicated a preference for working in the private sector.
In fact, most of the IT graduates surveyed in Malaysia (79.6 percent) were working in the private sector,
while 20.4 percent were with the government or with government-linked companies.
4 McQuaid, R.W. and Lindsay, C. 2005. The concept of employability. Urban Studies, Vol. 42, No. 2, pp. 197-219.
2 GRADUATE EMPLOYABILITY IN ASIA

Different perspectives
The results demonstrated differing perspectives among the graduates, universities and employers.
Graduates generally believed their education and skills were sufficient. The universities considered their
students to be well prepared for the transition to the workplace. Unfortunately, the employers concluded
that new graduates lacked vital skills for employment, citing unrealistic expectations and demands for
higher salaries as examples.
Such incongruent perspectives must be addressed for effective solutions to enhance the employability
of graduates. No graduates, HEIs or employers will argue against having professionals who are
knowledgeable and skilled, and at the same time possess desirable attributes. Several suggestions have
been made to reduce the gaps.
Bridging the gaps

Academic qualifications are essential, but the aptitudes and attitudes of job seekers are equally, if not
more, important to employers. A high grade point average alone does not guarantee employment. It is
therefore crucial for graduates to cultivate qualities most sought after by their potential employers. These
are what the researchers classified as ++ factors: they include motivation, an ability to think outside
the box, problem are solving and communication skills, and an ability to work both as part of a team
and independently. It is also vital that graduates liable to work in many different jobs and industries
throughout their entire career seek to constantly improve and update their skill, and willing to learn new
technologies. Any sign that they possess some of these qualities might persuade employers to offer
them jobs. Young people therefore have a responsibility to prepare themselves for a changing world
by improving their knowledge and skills to meet the demands of employers and the realities of the
workplace.
In economies with limited job opportunities, entrepreneurship is seen as a viable option for new graduates
to chart their own future by setting up an own businesses. To overcome barriers such as the shortage
of start-up funds, insufficient knowledge of business practices and lack of motivation, it is necessary to
design courses for entrepreneurship, organize extracurricular activities, and provide government support
and funding as further encouragement. This paradigm shift is seen in both Indonesia and Malaysia. The
Indonesian government has introduced an entrepreneurship skills programme and provides seed capital
for new graduates to start up their own businesses. The Malaysian government has initiated a combination
of conventional discipline-related courses and entrepreneurship courses to include subjects such as
small business management, competencies such as English language, team work and analytical skills to
expose students to skills to help them start their own business, create jobs for themselves and others.
ICT graduates will benefit substantially from such training in entrepreneurship in view of the potential for
innovative start-ups in the industry.
There is strong support for industries to play a bigger role in improving the employability of graduates,
both within or outside the formal curriculum structure. Linkages between universities and industries
offering work-based projects and internships can also help universities to acquire valuable information
to update their curricula, and students to gain practical work experience. Employers need to facilitate on-
the-job training, particularly for specific skills or new applications and technologies.
Conclusions
The concept of employability gives rise to questions such as: Should employability be the primary basis
that shapes the direction of universities? Is a universitys purpose to be defined solely by the expectations
of employers? It is contentious to argue that the quality of higher education should be measured solely
in terms of the employment rate of graduates, and that is not the intention of this research study. There is
no doubt that universities are expected to nurture their students to become responsible, productive and
innovative citizens, and by doing so, they will help to develop the desirable ++ factors in their graduates.

The task of producing such graduates does not lie only with the HEIs but is part and parcel of the entire
education system, including the primary, secondary and post-secondary education stages. Education
institutions at all levels share the same responsibility in developing current and future generations
of young people, as do governments, employers, non-governmental organizations and civil society
organizations. With more at stake, students themselves have to take personal responsibility to optimize
the opportunities they have in institutes of higher learning and ensure that they leave their institutes as
highly sought after graduates.
With the imminent establishment of Association of Southeast Asian Nation (ASEAN) Economic Community
(AEC) in 2015, there will be greater integration, and also competition among ASEAN countries. The
unemployment situation in Indonesia, Malaysia and the Philippines may ease when their job markets
expand across the borders, if their graduates can compete successfully at the regional level. The stakes
are high. UNESCO hopes that this report to highlight the importance of graduate employability and that
a concerted effort is needed by all to ensure that highlights graduates are adequately prepared and
trained to meet the challenges.

Graduate employability in Indonesia
Widijanto S. Nugroho, Nizam, Rahmat M. Samik-Ibrahim and Putu W. Handayani5
Introduction
Modern economy needs highly trained and skilled human resource, and higher education institutions
(HEIs) are required to produce qualified graduates to meet the needs of national development and
employers. The industry defines the characteristics and skill requirements of its workforce which may
or may not be matched by the graduates being produced by HEIs. In the higher education context,
employability has a variety of meanings, from the employment rate of graduates to the characteristics
of the graduate (Harvey, 2003). In the Indonesian context, employability is usually associated with how
quickly a graduate finds employment. As a result, the waiting period for seeking employment dominates
the indicator of whether an institution is able to produce qualified graduates for the job market (Syafiq
and Fikawati, 2008; Universitas Indonesia, 2003).
However, given the broad understanding of employability, it is important to recognize that the quality of
a university graduate is not just a reflection of the quality of the curriculum and its supporting academic
environment. It also reflects the demands of the industry as well as the competence of the regulating
body (i.e. related government institutions) in shaping the characteristics of higher education graduates. It
might be overly simplistic to say that universities are encouraged, if not pressured, to produce employable
graduates. The higher education sector in Indonesia needs to recognize and understand the context
of employability for their graduates to ensure that their students can live up to the expectations from
governments and employers.
Finding the answers to the question do our graduates have the right characteristics or attributes that
make them employable? will help to comprehend what constitutes graduate employability. Much of the
discussions on graduate employability tend to link it with the performance of HEIs. Harvey (2003) indicates
that equating employability with skills was part of the agenda of the 1990s. Similarly expressed in the
Dearing Committee Report (Dearing, 1997), employability is not just about getting the preferred skills.
A more important priority is the graduates work experience, an emphasis that must be fully understood
by HEIs. Harvey goes further to suggest a model of employability where an institution, notably the HEI,
provides a range of implicit and explicit opportunities for its graduates. These include job obtaining
knowledge and abilities, labour market information, interview techniques and curriculum vitae writing.
The institution may also develop a range of attributes such as (a) higher-level of analysis, critique and
synthesis skills; (b) interactive competencies such as team approach and communication skills; and (c)
personal characteristics such as self-organization, time management, risk taking and problem solving.
Another aspect that also contributes to the characteristics of the employability model is the development
of the students interest in continuous learning beyond formal higher education, and the development of
the students ability to reflect on their learning and experience.
A graduate recruiter in the United Kingdom believes that todays world of work is increasingly expecting
multi-skilled and multi-tasking employees (Fearn, 2009). Workers will need to apply new skills that will
require them to learn and re-learn while on the job. The DGHE-MONE (2009) report highlighted the
dominance of workers with elementary level education among Indonesias productive labour force.
In 2006, around 55 percent of the labour force obtained elementary education or less, while only 5.4
percent obtained tertiary level education as shown in Table 1.
5 University of Indonesia and Directorate General of Higher Education, Indonesia. The authors acknowledge the support from
UNESCO Bangkok and Directorate General of Higher Education, Indonesia who have supported the research.

Table 1: Development of workforce and education attainment (%)
Education attainment 2001 2004 2005 2006
No schooling 7.1 5.7 4.9 5.3
Primary education 55.9 51.1 50.7 50.2
General junior high school 16.2 18.3 18.5 18.9
Vocational junior high school 1.5 1.4 1.8 1.3
General high school 10.3 12.1 12.7 12.7
Vocational general high school 5.5 6.2 5.9 6.2
Diploma 2 0.7 0.9 1.0 1.0
Diploma 3 0.9 1.2 1.4 1.2
University 1.8 3.0 3.2 3.2
Source: National Statistic Bureau, Susenas, various years.
Even though the percentage of the workforce with tertiary education is still low, the number of graduate
unemployment is high. A recent survey from the National Statistic Bureau in February 2009 on the status
and type of jobs of high school and tertiary education graduates showed that most university graduates
work in the formal sectors, the lower the education level the more they work in the informal sectors. The
expectation of university graduates to work in the formal sector also resulted in higher unemployment
rate, as shown in Table 2.
Table 2: Graduates and status of employment in 2009 (000 and %)

General HS Voc HS D I, II, III University
Status/type of job
No % No % No % No %
1 Formal 8.13 33.29 4.22 37.57 2.17 53.65 3.60 62.35
r&NQMPZFF 0,77 3.17 0,27 2.42 0.12 2.90 0.24 4.24
2 Informal 7.00 28.68 2.97 26.39 0.50 12.55 0.61 10.62
r4FMGFNQMPZNFOU 2,81 11.51 1,30 11.58 0.24 5.92 0.30 5.11
3 Unemployed 2.13 8.74 1.34 11.91 0.49 12.04 0.63 10.85
r1SFQBSJOHBKPC 0,05 0.19 0,03 0.27 0.02 0.37 0.01 0.24
4 Non-labour force 7.15 29.29 2.71 24.14 0.88 21.76 0.93 16.18
r'VSUIFSTUVEZ 2,23 9.13 0,30 2.64 0.04 0.95 0.03 0.60
r)PVTFXJGFEPNFTUJD 4,19 17.15 2,05 18.20 0.72 17.70 0.74 12.87
r0UIFST 0,73 3.00 0,37 3.29 0.13 3.11 0.16 2.71
Total 24.41 100.00 11.24 100.00 4.04 100.00 5,77 100.00
Source: Iryani, 2010, based on Sakernas 2009.
While the number of unemployed HEI graduates is high, at the same time, the number of foreign workers
in Indonesia is increasing. In January 2005, there were 21,255 foreign workers in Indonesia; in June 2009
the figure rose to 46,226, an increase of 121 percent in five years or annual increase of 25 percent. The
increase in foreign workers was inline with the increase in foreign direct investment. More than 50
percent of the foreign workers work in Jakarta. The fact that most of the foreign workers in Indonesia
occupy highly skilled positions, as shown in Figure 1, is becoming a serious concern. It is, therefore, crucial
for the higher education system to focus on developing their students competencies and skills to match
job opportunities and improve their employability.

Figure 1: Highly skilled foreign workers in Indonesia by occupation
7%
20% Advisor/counsultant (7%)
Technician (20%)
Professional (39%)
8% 39% Supervisor (8%)
Manager (17%)
17% Director (8%)
Commissioner (1%)
8% 1%
Source: National Statistic Bureau, February 2008
A research on graduate employability in the Philippines posed several questions to identify parameters
for describing employment and employability aspects of university graduates (De Guzman and De
Castro, 2008):
rWhich programmes are most sought by employers?
rWhich programmes have the best potential for the highest initial earnings?
rWhich types of graduates are most employable?
rHow long did it take graduates to find employment after college?
rWhat academic experiences/competencies from college did the graduates find most useful?
rWhich factors best determine employability from the personal and academic backgrounds of graduates?
Through systematic sampling, the results showed that graduates of a Philippines comprehensive
university did not have to wait long to find regular employment. Furthermore, these graduates were
employed through walk-in applications and recommendations. The research found that graduate
employability was not attributed to the academic honours of graduates. Rather, it was due to the assets
of knowledge, skills and attitudes, and the way these were deployed in the workplace. The research
findings provided structural and procedural implications for universities in the Philippines. In view of the
findings, a more functional framework for employability needs to be developed, allowing better links
between the degrees offered and the diversity of employment.
In the Indonesian context, the term graduate employability has to be examined from the viewpoints
of industry, HEIs and related government bodies. Several studies have contributed to the knowledge
on graduate employability (Syafiq and Fikawati, 2008; Universitas Indonesia, 2003; DGHE-MONE, 2009).
This paper presents findings from a research study undertaken with the support of UNESCO and the
Japanese Funds-in-Trust to further explore and distinguish an employability model for Indonesian higher
education graduates, focusing on graduate employability from the perspectives of the graduate, the
educational institution, industry and various government bodies.
Research approach
A literature review was first conducted to collect information on graduates success in obtaining a job
after finishing their studies. This was followed by several surveys targeting the three main stakeholders
students, HEIs and employers. Fresh graduates, job seekers and employed graduates were surveyed
to develop a profile of their employment characteristics. HEIs were interviewed and their curricula
examined to find out how they instil employability characteristics in their graduates. A random sample
of employers reflecting different kinds of job opportunities were surveyed to understand the industrys
requirements when employing graduates.
Survey instruments were distributed at a two-day job exposition at Universitas Indonesia in October
2009, online through alumni mailing lists, via a web survey and during a one-day seminar involving

employers held by the Computer Science Center of Universitas Indonesia. The following is the summary
of the responses:
r524 survey forms were distributed; 72 of the forms returned had errors leaving 452 for analysis;
r73 responses were obtained through email and the web survey; and
r29 respondents were employers one form was rejected because it was incomplete.
Results of the study

Profile of the labour market
Indonesias economy is shifting from being agriculture-based towards industry and service-based. Data
from the National Statistic Bureau indicated that in 1971 the agriculture sector contributed 44.8 percent
to the nations GDP, in 1990 it went down to 21.5 percent, and in 2006 it only contributed 12.9 percent.
However, the shift in labour force was slower to take place. In 2001 the agriculture sector absorbed 68.8
percent of the work force while in 2006 it absorbed only 44.7 percent, as shown in Table 3. The structure
of the labour force explains to some extentd the high unemployment rate of university graduates.
Table 3: Development of labour force composition by sector (%)

Sector 2001 2004 2005 2006
Agriculture 68.8 43.4 44.1 44.7
Mining 4.4 7.5 7.5 7.3
Manufacturing 3.6 5.6 6.4 6.0
Utilities 2.4 5.1 5.0 4.8
Construction 10.7 20.4 19.0 19.4
Trade 3.0 6.3 6.6 6.4
Transportation and Communication 2.1 3.5 3.4 3.2
Banking and Financial Services 1.9 3.4 3.7 3.8
Government and other services 3.1 4.8 4.3 4.4
Source: National Statistic Bureau, various years.
Profile of the working age in Indonesia

Data obtained from the Ministry of Manpower and Transmigration for 2008 showed that there were
about one million HEI graduates aged 20-24 years, 1.7 million graduates aged 25-29 and 1.3 million
graduates aged 30-34 (Figure 2). The data also showed that about 7.5 million people in the labour force
have a higher education (Figure 3), but the number of unemployed with a higher education degree was
almost 1.2 million, 90 percent of whom were actively seeking employment (Figure 4).

Figure 2: Profile of higher education graduates by age, 2008
2,000,000
Number of graduates
1,500,000
1,000,000
500,000
0
20-24 25-29 30-34
University 329,656 956,177 817,236
College 606,959 727,876 455,077
Age group
Source: Ministry of Manpower and Transmigration
Figure 3: Profile of higher education graduate labour force, 2008

Number of graduate workers
6,000,000
4,000,000
2,000,000
0
Academy/College University
Female 1,602,839 1,700,587
Male 1,577,634 2,694,617
Level of education
Figure 4: Profile of higher education graduates open unemployment, 20086

800,000
Number of unemployed
600,000
graduates
400,000
200,000
0
Academy/College University
Others 27,075 22,691
Looking for employment 492,792 603,511
Level of education
6 Open unemployment refers to a situation where individuals are unable to find jobs at reasonable rates, but are actively
looking for work.

The 2008 economic turmoil obviously has had an impact on the job market in many countries. Although
the Indonesian government claimed that the economic recession might have a minimal impact on
the countrys economy, the number of people looking for employment, especially those with a tertiary
education, should be considered to provide a clearer understanding of the factors that affect the
employability of higher education graduates.
The Ministry of Manpower and Transmigration data also demonstrated that the number of people seeking
jobs far exceeded job opportunities/vacancies available for graduates of higher education institutions
(Table 4). It is safe to assume that people with knowledge, skills and attitudes preferred by employers will
be more likely to get a job, thus increasing the competition for the remaining job seekers.
Table 4: Job vacancies in 2008

Field of work Vacancy for male Vacancy for female Total vacancy
Agriculture, farming, fisheries and forestry 40,221 25,075 65,296
Mining 1,229 434 1,663
Processing industry 20,829 22,038 42,867
Utilities company: electricity, gas, water 150 112 262
Construction 3,924 45 3,969
Trading, retailer, restaurant, hotel 5,080 8,121 13,201
Transportation, warehousing, 342 383 725
telecommunication
Finance, insurance 6,427 4,716 11,143
Public services 14,226 40,976 55,202
Total 92,428 101,900 194,328
Profile of the survey respondents

Figures 5, 6 and 7 summarize the profiles of the respondents by sex, age and level of education.
Figure 5: Profile of respondents by sex
300
Number of respondents
250
200
150
100
50
0
Employed Looking for employment
Female 119 142
Male 172 92
Education programmes
Source: Survey data

Figure 6: Profile of respondents by age
450
400
350
300
250
200
150
100
50
0
>38 29-38 19-28 >19
Looking for employment 1 1 233 1
Employed 0 15 199 0
Age group
Source: Survey data
Figure 7: Profile of respondents by level of education

400
350
300
250
200
150
100
50
0
D1 D2 D3 S1 S2 S3
Looking for employment 1 0 47 180 5 1
Employed 0 1 25 183 10 0
Education programmes
Source: Study survey data7
More male graduates were employed compared to female graduates, and more female graduates were
looking for employment than their male counterparts (Figure 5). The majority of the respondents looking
for employment were aged 19 to 28 years (Figure 6). Most of the respondents had an undergraduate
degree (S1) with an equal distribution between those who were employed and those seeking employment
(Figure 7). The job fair appeared to attract more fresh graduates than those with a masters or higher
degree. This observation further reinforces the need to focus on the employability of undergraduate
students.
Profile of employed graduates

Out of the 525 respondents, 291 were employed graduates. However, the question whether there are
enough jobs to match the number of graduates looking for jobs remains a major concern, according to
the data shown in Figures 3 and 4.
The respondents were graduates from the following types of university:
rUniversitas Indonesia;
rUniversities around Jakarta area, i.e., Jabodetabek area (University Type A);
rUniversities in Java outside of Jakarta (University Type B);
rUniversities outside of Java (University Type C); and
rForeign universities (outside of Indonesia).
7 D = diploma; S = strata. D1 = one year diploma; D2 = two year diploma; D3 =a three year diploma; S1 = four year bachelors
or undergraduate degree; S2 = two year masters or postgraduate degree; S3 = three year doctoral or postgraduate degree.

Figure 8 shows that 72 percent of the employed respondents were graduates of universities in the
Jakarta region (i.e., Universitas Indonesia and University Type A). This is not surprising since the survey
was conducted in Jakarta itself. However, more than 90 percent of the respondents graduated from
universities in Java, indicating that a substantial number came from further away to take advantage of
the job exposition in their search for information and better job opportunities.
Figure 8: Survey respondents who are graduates from higher education institutions
4%1%
23% Foreign university (1%)

University type C (4%)
University type B (23%)
University type A (29%)
29% 43%
Universitas Indonesia (43%)
Source: Survey data
Figure 9 shows that 28 percent of employed respondents found jobs even before graduation, 32 percent
got their first job in less than three months and 23 percent within three to six months. Using the lead time
of 6 months or less as a measure to gauge whether graduates are readily employable, the 83 percent
who got their first job within six months indicated a high level of employability. However, when trying
to extrapolate this finding to the whole of Indonesia, it would be prudent to note that most of the
respondents were graduates from universities in Java only.
Figure 9: Lead time to first employment
7%
10%
>12 months (7%)
6-12 months (10%)
23% 28%
3-6 months (23%)
<3 months (32%)
Employed before graduation (28%)
32%
Source: Survey data
Information on labour market demand is important to ensure that HEIs are producing valuable human
resources where they are most needed. From Figure 10, it can be seen that 21 percent of the employed
graduates were absorbed into the public/service sector, 17 percent into the IT sector and 12 percent
into consulting services. A rather large proportion (38 percent) selected the others category, making it
difficult to have a more detailed picture of their area of work. This group could also have included self-
employed graduates, which might have helped to explain the 83 percent who were employed within six
months after graduation. As a comparison, a tracer study of Universitas Indonesia graduates revealed that
50 percent of them worked in the private sector, 11 percent in manufacturing, while only 3 percent were
self employed (Syafiq and Fikawati, 2008).

Figure 10: Field of work
17%
IT industry (17%)
6% General industry (6%)
38%
6% Education (6%)
Others (38%)
Consulting (12%)
21%
12% Public/service sector (21%)
Source: Survey data
Figure 11 shows that 51 percent of the respondents worked less than one year at their current place of
employment and 33 percent up to two years, indicating a relatively new and transient workforce. Figure
12 reveals that the majority of employed graduates thought their education background and training
matched their current employment. Yet Figure 13 points out a high level of job dissatisfaction: 77 percent
were dissatisfied with their current employment. Figure 14 highlights the mobility of young employees
with 22 percent having moved once, 29 percent having moved at least twice and 6 percent more than
three times prior to their current employment.
The 2008 tracer study of Universitas Indonesia graduates found that more than 66 percent of the
respondents had other jobs prior to their current employment (Syafiq and Fikawati, 2008). This finding
suggests that job satisfaction might also be an issue for their cohorts. Likewise, the length of first
employment varied between 6 months to 2 years for Filipino graduates (De Guzman and De Castro,
2008). Perhaps this is a trend common among fresh graduates looking for options to improve their job
prospects. Considering the high level of job dissatisfaction among the newly recruited graduates in the
current Indonesian study (Figure 15), companies are likely to face high turnover rates if nothing is done
to address the issue of job satisfaction, which can be influenced by many factors, including salary scales.
While not definitive, Figure 16 shows that those earning higher salaries stayed longer in their jobs.
Figure 11: Length of work at current company

2%
17%
>5 years (2%)
3-5 years (17%)
51% <1 year (51%)
30% 1-2 years (30%)
Source: Survey data
Figure 12: Match of educational background and current employment
17%
No (27%)
Yes (73%)
51%
Source: Survey data

Figure 13: Job satisfaction
2%
9%
21% Unsatistied (9%)
Very satisfied (2%)
Satisfied (21%)
Not yet satisfied (68%)
68%
Source: Survey data
Figure 14: Change of employment
6%
More than 3 times (6%)

29%
2 or 3 times (29%)
Once (22%)
43% Never (43%)
22%
Source: Survey data
Figure 15: Length of work and job satisfaction

140
120
100
80
60
40
20
0
<1 year 1-2 years 3-5 years > 5 years
Unsatisfied 9 2 1 0
Not yet satisfied 90 32 8 3
Satisfied 18 19 5 0
Very satisfied 2 1 1 1
Source: Survey data

Figure 16: Salary level and length of work
40
30
20
10
0
<1 yr 1-2 yrs 3-5 yrs >5 yrs
>Rp 10 million 4 5 11 3
Rp 5-10 million 1 5 9 1
Rp 2-5 million 15 4 12 0
<Rp 2 million 3 1 0 0
Source: Survey data
Profile of graduates looking for employment

The number of respondents included in this category is 234. Whole female respondents looking for jobs
outnumbered their male counterparts (Figure 5), the number of jobs available to females exceeded that
of males (Table 1). In Indonesia, it is possible to specify the preferred sex in job advertisements without
any legal implications.
Most of the surveyed graduates looking for employment were between 19 and 28 years of age (Figure
17) and more than 95 percent of them were single. Majority of them (95 percent) graduated in the last
three years, with 180 having a bachelors degree and 47 with a three-year diploma (see Figure 7). It can
be surmised that there was a wait of at least two months to three years before some of the respondents
found employment, in sharp contrast to employed graduates who waited less than 6 months for their
first job. Unfortunately, the survey was not designed to find out if the majority of graduates looking for
employment graduated within the last year.
Figure 17: Age distribution of job seekers

250
200
150
100
50
0
>38 yrs 29-38 yrs 19-28 yrs >19 yrs
Age of job seeker
Source: Survey data
As can be seen from Figure 18, the majority of respondents looking for jobs were from universities in Java
with more than 50 percent originating from universities within the Jakarta region. As a consequence,
many preferred to work in the Jakarta area, although Figure 19 also indicates that some were looking for
employment outside of Java and abroad.
It should be noted, however, that those looking for jobs in the Jakarta region were not from Universitas
Indonesia or from Type A universities only (Figure 20). In fact, 22 percent were from universities outside of
Jakarta. Moreover, about 5 percent in the Jakarta region were graduates of universities from other parts of
Indonesia, while Figure 21 indicates that the preferred location for work after Jakarta is abroad, especially
for graduates of Universitas Indonesia.
Figure 18: Higher education institution of job seekers
100
80
60
40
20
0
Universitas University University University Foreign
Indonesia Type A Type B Type C university
81 85 52 15 2
Higher education institutions
Source: Survey data
Figure 19: Preferred work location

250
200
150
100
50
0
Around Java West East Abroad
Jakarta area (not in Jakarta) Indonesia Indonesia
Working location 210 11 18 9 21
Source: Survey data
Figure 20: Jakarta area as preferred work location
5%
22% Universities outside of Java (5%)

Universities in Java outside of Jakarta (22%)
35% Universities around Jakarta area (38%)
Universitas Indonesia (35%)
38%
Source: Survey data

Figure 21: Preferred working location
25
20
15
10
5
0 Java, outside West Indonesia East Indonesia Abroad

of Jakarta
Foreign universities
Universities outside of Java
Universities in Java outside of Jakarta
Universities around Jakarta area
Universitas Indonesia
Source: Survey data
This might indicate that graduates are confident that their skills honed in an Indonesian university can
fulfil the requirements to work abroad. Further investigation is needed to see how jobs abroad absorb
Indonesian graduates regardless of their field of study or location of their university.
The respondents preferences for area of work (Figure 22) are spread evenly across the disciplines. This
provides an interesting contrast to the actual field of employment presented in Figure 10. For example,
while 24 percent cited general industry as their preferred choice, only 6 percent are working in that
area. Similarly, 12 percent indicated a preference for education, only 6 percent are actually employed in
that sector (Table 5). Again, 17 percent had opted for others, but 38 percent ended up working in this
undefined area.
This finding is rather significant given that most of the graduates also said that they had applied for a job
related to their field of study (Figure 23). This divergence underscores a stark reality that many graduates
are not working in their preferred areas even though they had applied for jobs in their area of specialty.
This may be due to many factors, including a shortage of job opportunities and downturn in the sectors,
but the graduates employability attributes should also be questioned.
It is also interesting to see that many graduates favoured employment in the private sector (Figure 24). This
inclination towards the private sector is a common aspiration among the graduates from all universities
in and outside of Jakarta (Figure 25). The question is, whether this preference is due to the graduates
perception that their skills are more suited for the private sector, or that the private sector pays higher
salaries and better benefits? Unfortunately, the survey results could not lead to any concrete conclusions.
Figure 22: Preferred field of area
17% 16%
IT industry (16%)
12% Education (12%)

17% Others (17%)
Service sector (17%)
General industry (24%)
14%
24% Consultant service (14%)
Source: Survey data

Table 5: Areas of employment
Sector Preferred area of work (%) Actual area of work (%)
IT 16 17
General industry 24 6
Education 12 6
Public/service 17 21
Consultancy 14 12
Others 17 38
Figure 23: Job applied for related to graduates field of study

100
80
60
40
20
0 Grads of Grads of Grads of Grads of Foreign

UI Univ Type A Univ Type B Uiv Type C universities
No
Yes
Source: Survey data
Figure 24: Preferred type of employer
2% 1%
4% 5% Private company (37%)
Others (1%)
Self-employed (5%)
37%
34% NGO (2%)
Research institute (4%)
State-owned company (34%)
Civil servant (17%)
17%
Source: Survey data
Figure 25: Preferred type of employer by universities

140
120
100
80
60
40
20
0
Private Civil Government- Research NGO Self-employed Others
company servant owned company institute
Foreign universities
Grads of Univ Type C
Grads of Univ Type B
Grads of Univ Type A
Grads of UI
Source: Survey data

Figure 26 analyzes how a graduate secures employment. It shows that the majority of the graduates
surveyed had submitted at least five job applications to land a job.
Figure 26: Attempts to obtain a job

80
70
60
50
40
30
20
10
0 Grads of UI Grads of Grads of Grads of Foreign
Univ Type A Univ Type B Univ Type C universites
Never applied
>10 times
6-10 times
1-5 times
Source: Survey data
Employers on graduates employability

An employability performance indicator cannot be concluded simply from the employment rates of
HEI graduates. While some definitions of employability recognize that it is closely linked to the rapport
between higher education and employment (Harvey, 1999), this relationship raises crucial questions
about the purpose and structure of the higher education system. Employability is not about only training
or providing additional skills to gain employment; it should also be about how the higher education
system through its many institutions develops critical, reflective and empowered learners who will be
highly sought after and valued by employers. The employers perspective of the kind of graduates they
will hire is important to help HEIs decide the direction of their educational goals. This section discusses
the survey results gathered from 29 respondents representing various types of state-owned enterprises
during a one-day workshop involving many government-owned companies.
When asked if the graduates skills are those required by their organizations, only a slight majority of
employers replied positively (Figure 27). Furthermore, 43 percent indicated that they would like the higher
education curricula to meet the needs of industry. On-the-job training and improving the graduates soft
skills were also pointed out as areas that needed more attention (Figure 28).
Figure 27: Match between graduate skills and needs of business
Yes (52%)
48% 52%
No (48%)
Source: Survey data

Figure 28: Employers expectations
9%
28% Improved curriculum accommodating

the needs of industry (43%)
Others (9%)
43% On the job training is compulsory (28%)
20% Training in soft skills is neccessary (20%)
Source: Survey data
According to 83 percent of the employers surveyed, the most important criterion for hiring new
employees lies in the results of the placement test conducted by their companies. The test includes a
battery of assessments on technical skills/knowledge related to the job, psychological test, medical test
and scholastic test. Interestingly, only 52 percent of the employers considered the grade scores (Grade
Point Average) to be an important factor when hiring a new employee, while 41 percent cited work
experience to be relevant.
The attributes most desired by the employers are listed below:
1. Communication skills
2. Teamwork skills
3. Integrity
4. Intellectual capacity
5. Self confidence
6. Personality/individual character
7. Planning skills
8. Writing skills
9. Computing skills
10. Analytical and problem solving skills
11. Other skills
The top four skills sought by employers are integrity, intellectual capacity, team work skills, analytical and
problem solving skills (in order of priority). When employers are asked to choose four skills which HEIs
should emphasize, they selected, in order of priority, analytical and problem solving skills, integrity, team
work skills and personality.
These observations reaffirm the findings from other studies (De Guzman and De Castro, 2008; Syafiq
and Fikawati, 2008; DGHE-MONE. 2009). Personal communication with representatives from related
institutions echoed similar sentiments expressed by employers as reported by Syafiq and Fikawati (2008)
and Universitas Indonesia (2009):
rGraduates need more exposure to industry. There should be links with appropriate industry.
rGraduates need to develop skills to identify and analyze problems critically, which may be done through
problem-based exercises.
rSoft skills for graduates are built through methods of delivery, not simply through a high level curriculum
structure.
Clearly, there is strong support for industries to play a bigger role in improving the employability of
graduates. While the mission of most HEIs is broader in scope than just supplying a steady stream of
skilled workforce, it is also expedient to align their educational programmes with the demands of the
workplace within or outside the formal curriculum structure.

Conclusions
The Indonesian economy and labour structure are shifting from agriculture-based towards the industry
and service sector. However, the shift in economic structure has not been followed by the profile of
the labour market. The low-skilled agriculture sector still dominates the labour market, therefore the
structure of the workforce is also still being dominated by lower education. As the economy and market
are modernizing, the mismatch of higher education in responding to the demand of the job market
becomes noticeable, as is reflected by high graduate unemployment rates. However, this study indicated
more optimistic views of graduates seeking job and those already employed.
Since the survey was conducted in the Jakarta area, it was not surprising that most of respondents were
graduates from universities in the vicinity. The email and web surveys only managed to capture responses
from graduates who were already employed. The key findings are summarised below:
rMany of the graduates looking for employment felt that the jobs they applied for were related to their
field of study regardless of the HEI they had attended.
rMost of the graduates concurred that their academic training matched the requirements of their
current employment, indicating that the HEIs had prepared the students sufficiently to meet labour
market demands.
rJakarta was the preferred location for work, largely because most of the respondents were from the
capital. However, the graduates also indicated that they were looking for employment overseas.
rThe graduates had also submitted many job applications before they were able to find employment.
Still, many found employment within six months of graduation.
rGraduates looking for employment had expressed a preference for working in the private sector.
rRegardless of the length of time in their current positions, the majority of employed graduates were
dissatisfied with their current jobs. For those who had expressed some degree of job satisfaction, the
salary level appeared to have been an influential factor.
rMany employers wanted the HEIs to improve their curricula to match the needs of the industry by
including on-the-job and soft skills training as part of students skill development.
rEmployers prioritized integrity, intellectual capacity, team work skills, and analytical and problem solving
skills as the most desirable characteristics they were looking for from the graduates.
The findings of this study provide a view of the employability of higher education graduates in Indonesia.
It should be noted, however, that the sample does not represent the wide range of characteristics relevant
to the context of graduate employability in the country. Given that Indonesia is an archipelago of over
17,000 islands and 33 provinces, with big cities and smaller towns, the local conditions and requirements
are bound to be varied.
The majority of the respondents have an education equivalent to a bachelors degree, and therefore, the
findings are based on their education and training. It is likely that graduates with a three-year diploma
education will show a different employability profile considering that their training is more geared
to meet the demands of the workplace. Further studies using larger sample sizes, covering a greater
geographic spread, and differentiating the various disciplines will be necessary to provide a more in-
depth insight into the profiles of graduates and their attributes of their employability.

Recommendations
Graduate unemployment is dependent on many factors. Creating enough jobs to meet the increasing
numbers of highly educated young people is a priority of governments. HEIs, on the other hand, have
to ensure that they are producing the right kind of graduates who can meet the demands of employers.
Likewise, industries have to work hand in hand with the governments and HEIs to complement their
efforts in preparing the students to be a productive and skilled workforce when they graduate.
However, in times of economic hardships and intense competition, it is not easy for fresh graduates to
find jobs that match their expectations even though they may think they are highly qualified. To address
this issue, it may be necessary for graduates to be innovative and create jobs for themselves, rather than
wait for lucrative jobs to land on their laps. Such a paradigm shift has been initiated by the government
by introducing an entrepreneurship skills programme and by providing seed capital for new graduates
to start up their own businesses.
HEIs should take special note that integrity, intellectual capacity, teamwork skills, and analytical and
problem solving skills are the four top priority skills sought after by the employers when hiring new
employees. They may have to re-design or adapt their curriculum to ensure that these qualities are
instilled in their students, and this should be done in collaboration with the industries.
Therefore, a closer relationship between universities and industries is highly recommended. While HEIs
develop curricula that are adaptive to the needs of industries, likewise the employers should open its
doors to students for internships and training. More industry involvement in the design of curricula,
updating courses with the industries needs in mind, and defining the competence and qualifications
needed by the industries will certainly benefit all the stakeholders.
Graduates also have to take some responsibility in honing their employability. It is not enough to possess
academic knowledge and good grades. Job applicants who stand out are those who have demonstrated
their soft skills, particularly those that are highly desired by employers.
Thus, it is clear that the issues of graduate employment and graduate employability do not depend only
on one party, but involves the government, HEIs, industries and students. Working together to develop
viable strategies and solutions is the only way forward.
As Indonesias economy is shifting toward the industry and service sectors, more highly trained and
skilled work force will be needed to fill the demand. One of the major challenges of HEIs is how to keep
their programme relevant to the demand and requirement of the emerging economy.
References
Brown, P., Hesketh, A. and Williams, S. 2002. Employability in a knowledge-driven economy. Cardiff University,
School of Social Sciences. Working Paper Series, 26. http://www.cf.ac.uk/socsi/research/publications/
workingpapers/paper-26.html.
De Guzman, A.B. and De Castro, B.V. 2008. Employment and employability profile of a select group of
Filipino college graduates. KEDI Journal of Educational Policy, Vol. 5, No.1, pp. 63-81.
Dearing, R. 1997. Report of the National Committee of Inquiry into Higher Education, higher education in the
learning society. London. http://www.leeds.ac.uk/educol/ncihe/.
DGHE-MONE. 2009. Upaya mengurangi kesenjangan antara pendidikan tinggi dan dunia bisnis melalui
kompetensi analitik. Academic paper. Jakarta, Directorate General of Higher Education-Minisitry of
National Education, Indonesia.
Fearn, H. 2009. More things in heaven and earth, Horatio. Times Higher Education. http://www.
timeshighereducation.co.uk/story.asp?sectioncode=26&storycode=404855.

Harvey, L. 1999. Employability: developing the relationship between higher education and employment.
Fifth Quality in Higher Education Conference, Warwick University, 28 October 1999. http://www.
qualityresearchinternational.com/ese/relatedpapers.htm.
Harvey, L. 2003. On employability. Enhancing Student Employability Co-ordination Team (ESECT) and Higher
Education Academy. http://unesdoc.unesco.org/images/0015/001597/159779e.pdf.
McIntosh, S. 2008. Education and employment in OECD Countries. Paris, UNESCO International Institute for
Educational Planning.
Sewell, P. 2009. A model of graduate employability and employability impact measure. University of Central
Lancashire, ESCALATE Conference.
Smith, J., McKnight, A. and Naylor, R. 2000. Graduate employability: policy and performance in higher
education in the UK. The Economic Journal, Vol. 110, No. 464, pp. F382-F411.
Syafiq, A. and Fikawati, S. 2008. Tracer study University of Indonesia - final report. Jakarta, Universitas
Indonesia, Career Development Center.
Universitas Indonesia. 2003. Analysis on alumni tracer study. Jakarta, Universitas Indonesia, Faculty of
Computer Science.

Employability of graduates in Malaysia
Morshidi Sirat, Chan Lean Heng, Munir Shuib, Shukran Abdul Rahman, Seri Rahayu Ahmad Kamil and
Jasvir Kaur Nachatar Singh8
Introduction
Universities are recognized as central actors in human capital development but there is growing
international discourse on the role of higher education in social development (GUNI, 2008). In the context
of the present shift from knowledge to innovation economies, the role of universities in the development
of socially conscious and active citizens is highly important.
Various forums and publications have discussed how higher education institutions (HEIs) can develop
critical discourses which societies can use to continually reflect on their evolution towards positive social
transformation. These forums and publications also discuss how HEIs could strengthen their role as
agents of transformation, facing both local and global challenges. This would entail efforts to reorient
their vision and mission towards the creation and distribution of socially relevant knowledge.
HEIs clearly have an important role in producing citizens who can contribute to social transformation.
Strengthening the social responsibility of HEIs is essential for achieving harmonious global development.
Still, HEIs are under attack from employers and the government for not producing graduates with the
skills required by the industries. Thus, questions are being raised regarding the role of HEIs and whether
changes are needed.
This chapter discusses the situation in Malaysia with regard to graduate unemployment, followed by
an examination of the concepts of employability and graduateness and the role of universities. It also
presents the perceptions of various stakeholders (government, employers, graduates and academics) on
employment, employability of graduates, and the need for changes in Malaysian higher education.
Changes in the Malaysian economy and

effects on graduate employment
Malaysia has an enormous number of graduates entering the local employment market every year, and
this trend shows no signs of slowing down. At the same time, the 1996 financial crisis had negative
effects in terms of rising unemployment. Even now, Malaysia continues to face the stark reality of rising
graduate unemployment in spite of significant changes in the Malaysian economy since 1996.
It is in the context of this continuing supply of graduates against a backdrop of changing economic
fortunes and employment structures that issues concerning graduate unemployment and employability
have been raised. Policy makers, academics and industry have revisited the issue regarding the role of
the university as a centre for the development of intellectual, creative and other higher level skills versus
the need to supply workers for the labour market (university as a factory). Facing criticism from both the
government and private industries, universities are being accused of producing unemployable graduates.
Numbers of graduates and employment patterns

The higher education reforms of 1996 resulted in substantial changes in Malaysias higher education
landscape, especially in terms of a marked increase in student numbers and diversification of providers
of higher education comprising public universities, private universities, private colleges and transnational
providers (Morshidi, 2006).
8 Universiti Sains Malaysia, Malaysia.

In 2007, the total number of graduates from all levels of studies at public HEIs was 85,448 and an equally
astounding number of 83,432 graduated from the private system. In 2008, the public system graduated
59,844 students, while the private HEIs produced 26,590 graduates at the bachelors degree level (MoHE,
2008). A large proportion of these graduates had difficulties in finding employment. As shown in Figure
1, the percentage of graduates looking for jobs ranged between 30.7 percent in 2006 and 24.0 percent
in 2008.
Figure 1: Graduate employment pattern, 2006-2009

100
90
80
70
60
50
40
30
20
10
0
2006 2007 2008 2009
Employed 44.5 48.1 52.8 45.1
Continuing studies 17.6 18.9 15.2 18.4
Upgrading skills 1.5 1.2 1.2 2.2
Waiting for a job posting 5.7 5.1 6.7 7.6
Looking for a job 30.7 26.7 24.0 26.7
Year
Employment rates were higher among graduates with post-graduate degrees, as indicated in Table 1.
Graduates of technical studies, information and communication technology (ICT) and education were
more likely to be employed compared to graduates of arts, social sciences and sciences, as indicated in
Table 2.
Table 1: Graduate employment status, by level of studies, 2006-2009

2006 2007 2008 2009
Level of studies Employed Not yet Employed Not yet Employed Not yet Employed Not yet
employed employed employed employed
PhD 92.3 7.7 96.2 3.8 97.2 2.8 97.2 2.8
Master 89.6 10.4 90.2 9.8 92.7 7.3 91.8 8.2
Postgraduate 95.8 4.2 86.1 13.8 99.6 0.5 97.6 2.4
diploma
First degree 63.6 36.4 70.4 29.7 75.4 24.7 70.9 29.2
Advanced diploma 68.0 32.0 72.9 27.2 74.2 25.8 66.5 33.5
Diploma 77.2 22.9 77.8 22.2 78.5 21.5 77.5 22.6
Certificate 67.3 32.7 65.4 34.5 61.5 38.5 59.3 40.6
Professional 71.7 28.4 88.9 11.1 94.4 5.6 91.4 8.6
Total percentage 69.3 30.7 73.3 26.7 75.9 24.1 73.3 26.7
by year
Source: MoHE, various years.

Table 2: Employment status of undergraduate graduates, by group of specialization,
2006-2009
2006 2007 2008 2009
Specialization Employed Not yet Employed Not yet Employed Not yet Employed Not yet
employed employed employed employed
Arts and Social 55.5 44.5 63.9 36.1 69.8 30.2 64.6 35.4
Sciences
Sciences 52.4 47.6 65.6 34.4 69.1 30.9 66.9 33.2
Technical 65.2 34.9 70.6 29.4 75.8 24.2 69.8 30.2
Information & 61.1 38.9 67.7 32.3 77.1 22.8 73.3 26.7
Communication
Technology
Education 97.0 3.0 96.4 3.6 96.9 3.2 94.9 5.1
Total percentage 63.6 36.4 70.3 29.7 75.3 24.7 70.9 29.1
by year
Source: MoHE, various years.
Government measures towards increasing employability

Since the mid-2000s and with the establishment of the Ministry of Higher Education (MoHE) in 2004, the
issue of rising unemployment levels among local graduates in certain disciplines has remained high on
the Malaysian governments agenda. There is a general perception, particularly among employers, that
unemployment of HEI graduates is due to their lack of generic skills and serious inadequacy in terms of
work-related competencies.
In an effort to address this issue, the MoHE initiated a move to combine conventional discipline-related
courses and entrepreneurship courses. Not only is the curriculum being revised to include subjects
such as small business management, skills and competencies such as English language, team work
and analytical skills are also being promoted, posing challenges to the structure, system and culture of
universities. The MoHE argues that with such a curriculum, graduates will be exposed to skills that would
be useful for them to start their own business, creating jobs for themselves and others in the process.
While many stakeholders, particularly employers, have different opinions about what needs to be done
by universities to improve the employability of local graduates, medium- to long-term solutions remain
unclear. Despite strategies and programmes introduced by the government to foster employability
among graduates, unemployment among local graduates remains high.
Graduate employability: concepts,

interpretations and issues
The concept of employability
The term employability has gained prominence of late because of the changing world of work.
Employability is used interchangeably with other terms such as core skills, key skills, and common
skills. To Saterfield and McLarty (1995), employability skills are the skills required to acquire and retain
a job, including job-specific skills, academic skills and a range of attitudes and habits. Communication,
problem solving and management skills are also important. According to Hillage and Pollard (1999, p.
83), employability is (a) the ability to gain initial employment, (b) the ability to maintain employment and
make transitions between jobs and roles within the same organization to meet new job requirements,
and (c) the ability to obtain new employment if required, to be independent in the labour market by
being willing and able to manage employment transitions between and within organizations. It follows

that the concept of employability refers to the competencies a graduate must have in order to find a job.
When viewed in the context of the workplace and employment market, the term employability refers to
several situations, as follows:
rThe situation in which an individual would be employed because his or her competencies match the
demands of a particular workplace and the expectations of potential employers.
rThe readiness of an individual to be employed. Thus, an employable graduate is an individual who
has completed studies, is currently available for work, has job-related competencies and makes
arrangements to start a job (Godfrey, 1986).
rThe effort that leads to enabling a student to acquire knowledge, personal and professional skills, and
the attitudes that will support his or her future development and employment (Brown, 2006).
rThe attributes of a graduate, as a result of education he or she has acquired. With certain competencies,
a graduate has higher likelihood to be employed if he or she applies for a job or can create a job.
The Malaysian government and employers are in unison in interpreting employability of graduates as
their marketability in the workforce. Employers have increasingly voiced their dissatisfaction to the MoHE
about the employability of local graduates, arguing that while many graduates are being churned out
of HEIs annually, there is a limited supply of those considered to be of good quality, and that rising
unemployment among graduates is primarily due to mismatch between supply and demand (Morshidi
et al., 2009).
From the perspective of employers, the level of quality of a graduate refers to their adequacy in terms
of the following attributes: self-confidence and soft-skills, especially competence in communicating in
the English language, focus and commitment. Surprisingly, employers have not raised other issues which
are equally important in terms of employment levels, such as sluggish economic growth. According
to a 2004 study by the Institut Penyelidikan Pendidikan Tinggi Negara (IPPTN, 2004), slow economic
growth and the changing employment structure have had a significant negative impact on graduate
unemployment in Malaysia. Another study undertaken by the IPPTN in 2002 and 2003 (IPPTN, 2003)
concluded that while there were some gaps in the curriculum in terms of equipping students with the
necessary skills for employment, more needs to be done with respect to graduates career planning and
their overall psychological make-up.
Harvey and Knight (1996) and Harvey and Green (1993) have argued that the quality of graduates can
be broken down into five related dimensions: quality as exceptional (e.g., high standards), quality as
consistency (e.g., zero defects), quality as fitness for purpose (fitting required specifications), quality as
value for money (as efficiency and effectiveness), and quality as transformative (an ongoing process that
includes empowerment to take action and enhancement of customer satisfaction).
To employers, good quality graduates would almost certainly include those who can be integrated
into modern profit-oriented organizations and can quickly contribute effectively to these organizations
(Harvey and Mason, 1996). Such graduates would exhibit exceptional fitness of purpose and value for
money, making them highly demanded by profit-oriented organizations (Morshidi et al., 2009). Employers
want to employ graduates for the knowledge and ideas they bring to an organization, their willingness
to learn and speed of learning, their flexibility, adaptability and ability to deal with change, their logical,
analytical, and problem-solving skills and the impact they have on innovations (Harvey and Mason, 1996).
The role of universities

The concept of employability, as defined by employers and the government gives rise to the question:
Should employability serve as the main basis that shapes the direction of universities? HEIs are expected
to produce a competent workforce for industries but it can be argued that a universitys purpose must
not be defined solely by the expectations of employers, but also by the aspirations of the nation. As
is increasingly argued, the quality of higher education should not only be measured in terms of the
employment rate of graduates but should also be measured by the extent to which higher education
has addressed all of its purposes. Universities have the aim of producing fully functional individuals
who not only serve in the workforce but must also be actively functioning members in their respective
communities. When HEIs are confined to meeting the demands of employers, this neglects the important

role of universities in nurturing the characteristics that help graduates to function across all aspects of life
after they graduate (the concept of graduateness). In other words, individuals must not only be geared
towards serving the work sector, but must also develop the skills that allow them to benefit their family,
community and the nation (Dan, 1999).
Given the many challenges in life that graduates must deal with, it is very important that higher education
is concerned with promoting comprehensive excellence amongst university graduates. Of paramount
importance is the development of characteristics that epitomize the philosophy of a university and the
aspirations of a nation, rather than simply the production of graduates who have the ability to secure
employment after completing their studies. Higher education must prepare graduates for all aspects of
the outside world: employment, local issues and global problems. Thus, the higher education curriculum
must prepare graduates to play adequate roles in discourse on issues such as nuclear energy, climate
change and globalization, and to not only fit the needs of the industrial sector.
The task of producing graduates who are prepared for the many challenges of the real world cannot
be left only to HEIs but is the responsibility of the entire continuum of the education system, including
the primary, secondary, and post-secondary education stages. All education institutions must together
discharge the role of developing individuals who contribute to their society.
Input from other relevant stakeholders is also essential in developing individuals with the characteristics
that society requires. All stakeholders HEIs, employers, non-governmental organizations (NGOs), civil-
society organizations (CSOs) and the government must act in unison with a view towards preparing
individuals for their social responsibilities and towards shaping society (Figure 2).
Figure 2: Stakeholders responsible for shaping society
Society
NGOs/CSOs
Industry
HEIs
Goverment
Thus, education should not be directed only towards meeting the needs and requirements of employers;
as industry-ready is not synonymous with society-ready. Besides, discourse on employability should
not be conducted only as a reaction to the unemployment phenomenon, but rather as a part of efforts
to develop society in the ideal form.

Graduateness defined
The term graduateness may be a more useful concept than employability as the former includes a range
of competencies that go beyond the skills needed for the workplace. While employability implies that
graduates possess the qualities required by organizations, graduateness implies that graduates have the
attributes that are important for an effectively functioning society. While employability is necessary, it is
vital that a graduate is of benefit to society.
Graduateness covers more than just core skills, key skills, or personal transferable skills, and encompasses
knowledge, understanding, dispositions, attitudes, and values. Graduateness implies that a graduate has
the required attributes that prepare them to contribute to society, not just to prepare them to conform
to the expectations of employers.
A graduate with graduateness possesses certain general attributes including the following:
rCritical and creative thinking;
rPreparedness to serve others.
rPersonal transferable skills: (a) managing tasks and solving problems (analytical and conceptual
thinking, gathering information to assist problem solving and decision making); (b) working with
others (understanding how others perceive themselves and the needs of others, and building positive
relationships); (c) communication (oral and written); and (d) self-awareness (taking responsibility for
ones own learning and development; dealing with pressures and emotions; and showing sense of
purpose) (Walker, 1995; HEQC, 1995).
rCognitive, emotional and moral development and practical competence (Bowen, 1977).
The graduateness of a graduate is not only the responsibility of the higher education sector but the whole
education system, encompassing the secondary level and earlier stages including pre-school level. As
the responsibility to ensure graduateness does not rely on the higher education sector only, there must
be coordination among providers of all levels of education. The high quality of learning in the universities
depends on the academic preparedness and motivation of incoming students from secondary schools.
What is a good quality degree?

The concept of graduateness raises the question of whether holding a degree reflects the possession
of certain attributes. This question has been reviewed by a number of parties. For example, Otter (1992)
states that it is possible for students to graduate without possessing some of the key qualities expected
of a graduate. This leads to questions about standards and how to ensure graduates reach a certain
quality level.
According to the Higher Education Quality Council (HEQC, 1995a), in order to produce high quality
graduates all degree programmes should include the aspects listed below:
rTeaching should be research-informed so that the students may become research-aware.
rStudents should be encouraged to develop self-motivating study habits and skills.
rThere should be an emphasis on the development of a critical and analytical approach to the theories
and concepts learned.
rStudents should grasp the impermanence and open-ended character of a disciplines share of, and
contribution to, knowledge and understanding.
rProgrammes should be provided to equip students with the necessary skills to join professional practice,
including both intellectual and practical skills.
Similarly, the Graduate Standards Programme (HEQC, 1995b) suggested that the award of a degree
should be linked to the achievement of at least three types of attributes listed below:
rField-specific attributes: A graduate possesses a body of knowledge particular to the field (or fields)
studied, and which are relevant to a particular occupation.

rShared attributes: A graduate possesses additional general attributes, which are common to graduates
from a particular type of degree. These attributes may be rooted in the common teaching methods, or
ethos or educational objective of an institution.
rGeneric attributes: A graduate possesses generic attributes shared by all or most graduates.
Besides addressing the processes that promote the attainment of these attributes, it is important to
ensure the mechanisms to assess the attainment of the attributes are in place to ascertain that students
meet an expected threshold for each set of attributes before they become graduates. At the same time,
it is important that HEIs provide an environment in which relevant competencies are continuously
adapted to meet changing needs of the workplace and society (DfEE, 1997). Students must be able
to continuously learn and adapt to change, and graduates should be prepared for lifelong learning. If
this could be achieved, our societies would consequently have citizens that would be able to meet the
challenges of a constantly and rapidly changing world and could fulfil their countries development
aspirations (Dan, 1999).
Employability study in Malaysia

The purpose of the study was to compile information about the opinions and perceptions of recent
graduates, employers (industry and NGOs), government and academics in Malaysia regarding
unemployment and the employability characteristics of graduates.
In particular, the study aimed to assess the perceptions of respondents with regard to the following
research questions:
rWhat are the causes of unemployment in Malaysia?
rWhat are the characteristics of employability?
rWhat are good quality graduates?
rHow should employees gain the required work skills?
rCan social and interpersonal skills be taught?
rShould we re-structure curricula to improve employability?
rWhat are the constraints in producing employable graduates?
Research methodology
For this study, a qualitative approach was adopted.9 To gather the information, 11 focus group interviews
were conducted with graduates, employers, government officers and university staff in Penang and Kuala
Lumpur between July and September 2009.10 Each focus group comprised between eight and twelve
respondents.11 The interviews lasted between one and three hours.
The 11 groups were as follows:
1. Selected employers in Penang
2. IT employers in Petaling Jaya
3. Malaysian Employers Federation (MEF) in Kuala Lumpur
9 This approach is consistent with the view put forward by researchers such as Bryman (2004), Creswell (1994), Lee (1992),
Merriam (1998), Silverman (2004; 2006) and Stake (1995) who state that the qualitative approach is a subjective and
unstructured method of gaining the perspective, point of view and experiences of the research participants. Minichiello
et al. (2008) further argue that the qualitative approach enables researchers to understand human behaviour, values and
beliefs from the informants perspective (Bryman, 2004 and Lee, 1992, p.9).
10 The focus group interview method has become a popular instrument for collecting qualitative data (Morgan, 1996; Parker
and Tritter, 2006) including higher education research (Collier and Driscoll, 1999). Morgan defines focus group methodology
as a research technique that collects data through group interaction (1996, p. 130) on a defined area of interest. This
technique is guided, monitored and recorded by the moderator (Gill et al., 2008, p. 293).
11 The desirable size of a focus group is six to ten participants (Gill et al., 2008; Morgan, 1996) who have similar characteristics
(Dreachslin, 1999) to ensure that the research respondents will be comfortable in speaking to each other (Williams and Katz,
2001).

4. Small and medium industry/enterprise (SMI/SME), Perai, Penang
5. Non-government organizations in Penang
6. Industry Division, Ministry of Higher Education, Putrajaya
7. Academics and researchers in Universiti Sains Malaysia, Penang
8. Research officers in Universiti Sains Malaysia, Penang
9. A private university in Kuala Lumpur
10. A private college in Kuala Lumpur
11. Unemployed graduates in Penang
12. Graduate trainees in the Penang Skills Development Centre (PSDC)
Semi-structured interview questions and interview guides were used in the focus group interviews.12
The questions were asked by trained moderators who sought additional information with follow up
questions13 and the sessions were audio-taped for transcription purposes and to ensure an accurate
record of what was said in the interviews.14 The respondents were selected based on their willingness to
share their experiences.15
In addition, secondary sources, including research papers, newspapers and other documents were used
to collect relevant information.16 In particular, data were collected from previous studies on employability,
tracer studies of graduates, articles in newspapers and strategic plans of higher education in Malaysia.
These documents were invaluable as naturally occurring texts and provided an overview and background
to the employability issues.17 Figure 3 provides an overview of the method used for the study.
Figure 3: Overview of the research method
Research Method of Analyse/

Approach Data Collection Interpret Data
Qualitative Focus Group Content

Approach Interviews Analysis
Naturally Occuring
Documentation
12 This approach is supported by Morgan and Keueger (1998), Bryman (2004), Plowman (1999) and Tharenou et al. (2007) as the
overall objective of interviews is to understand interviewees feelings and thoughts about a topic without any interference
from the researcher. Different styles of asking questions may lead to more and additional information and clarification
(Minichiello et al., 2008; Plowman, 1999) and give the research respondents an opportunity to tell their stories in their own
words (Sommer and Sommer, 2001). Interestingly, the application of the interview guide generates rich data or an excellent
source of qualitative data which can provide useful information on a researched area (Breen, 2006; Williams and Katz, 2001).
13 Approach endorsed by Dreachslin, 1999; Parker and Tritter, 2006.
14 Approach endorsed by Minichiello et al., 2008; Sommer and Sommer, 2001; Silverman, 2004.
15 According to Minichiello et al. (2008) in a qualitative and exploratory study, it is necessary to speak only to those who can
provide rich knowledge (p. 169).
16 In order to have high quality data, no one method of data collection is adequate to furnish sufficient information to
satisfactorily answer the research question (Buchanan, 1999). In addition, using additional documentation, counteracts
the biases of other methods and supplement sources of information (Tharenou et al., 2007, p. 125) and leads to making
substantial inferences from analysing documents (Yin, 2003).
17 Naturally occurring data are referred to as data produced entirely independently (Potter, 2004, p. 205) of the researchers
intervention (Silverman, 2006) or non-research generated data (Silverman, 2005).

Data analysis
The content analysis technique was used to interpret the information collected from the interviews and
documentation.18 The interview transcripts were read numerous times then themes in the material were
identified and the researchers then grouped similar themes in order to create categories. The responses
were then interpreted in order to answer the research questions. This can be carried out by relating the
categories to each other in some way to tell a story in relation to the research question.19
Findings
Responses regarding unemployment

In general, the respondents considered that the unemployment situation in Malaysia was due to the
unavailability of jobs. The MEF believed, however, that jobs for graduates were available and plentiful in
the expanding services sector.
According to the Federation of Malaysian Manufacturers/Small Medium Industries (FMM/SMI),
unemployment is a direct consequence of the contracting manufacturing sector. FMM/SMI respondents
believed that since multinational corporations began leaving Penang, jobs in the manufacturing sector
had become scarce. Furthermore, FMM/SMI respondents were of the opinion that the surge in the
number of graduates from universities was not helping the unemployment situation in Malaysia and that
changes in occupational structure had worsened unemployment further, with firms employing fewer
people.
Employers and the FMM/SMI were in agreement as to the unsuitability of graduates for the jobs available,
and the MEF considered this a major issue for Malaysia.
Unemployed graduates responses as to why they were unemployed indicated that they felt they did not
satisfy job requirements in terms of their academic qualifications, skills and competencies. In addition,
graduates felt that their lack of experience and their families socio-economic background were factors
leading to unemployment. In some cases, graduates believed they were unemployed because they were
reluctant to move to where jobs are available. For instance, a graduate respondent who lived in Penang
responded that he was not interested in moving to Kuala Lumpur even though there were many jobs
available in Kuala Lumpur. He reasoned that the cost of living in Kuala Lumpur was very high compared
to the salary that he would have earned by working there.
What are the characteristics of employability

According to both NGOs and industry employers, employable graduates are those who are prepared
to work, have the appropriate skills and competencies, and the ability to learn and re-learn. NGOs listed
humanitarian values (honesty, caring, patience) and socially-desirable attitudes (open, curious and
confident) as the key characteristics of employability. Employers, on the other hand, listed attitudes
such as preparedness, positivity, interest, dedication, team spirit, and readiness to face challenges and
hardship, and work-related competencies such as the ability to apply theory in the working environment,
the ability to speak English and communication skills as important characteristics. Employers also listed
qualifications as an important requirement for employability, but qualifications were not considered to
be as important as attitude. For example, as one employer noted, we look first at their qualifications
(technical), but their academic qualification will make up 20 percent and the rest will depend on their
attitude and adaptability. Thus, the responses indicate that a high grade point average will not guarantee
employability.
18 Content analysis is defined as any technique for making inferences by objectively and systematically identifying specified
characteristics of messages (Holsti, 1969, p. 14; Creswell, 2003).
19 The story is not just a description or simple summary of data but involves a central construct to be explained and other
variables that appear to explain or influence it (Tharenou et al., 2007, p. 257; Coffey and Atkinson, 1996).

Academics agreed with the employers regarding the importance of attitude. As one of the academics
noted, students who have good marks but have a bad attitude such as being disobedient, and being
unable to share knowledge and work in a team ... will not succeed as their poor attitude will create
problems. Employers and academics also saw the need for graduates who are balanced in terms of
intelligence, emotional and spiritual quotients.
Trainees at the PSDC and other unemployed graduates believed having excellent communication skills,
in particular English language skills, was important for employability.
What are good quality graduates?

The characteristics of good quality graduates, as perceived by the employers, include the following:
rGood values (e.g. honest, confident yet humble, innovative and creative);
rPositive attitudes (e.g. proactive, hardworking, high motivation and curiosity driven);
rWork-related skills (e.g. communication, entrepreneurship and leadership skills); and
rPreparedness to work (e.g. industry-ready skills and ability to perform well in a working environment).
How should employees gain the required work skills?

According to NGOs, training and exposure (work experience) are required to gain work skills. Academics
agreed that on-the-job training was important in preparing graduates for the workforce. In this context,
they believed that alumni should assist their respective institutions to provide work-experience
opportunities for students. In addition, networking with industry was necessary for students to be
exposed to real-world work situations. Nevertheless, academics responded that focusing purely on work
skills was not sufficient. Graduates must also develop the values and knowledge required to contribute
effectively to society.
The employers agreed that work-experience was necessary but were not satisfied with the level of
networking that existed between industries and universities. Most of the employer respondents believed
that companies should be invited to universities to give career advice more frequently, and they believed
that companies should also play an active role in assessing the curriculum to ensure it matches job-
market needs.
Graduates believed that lecturers need to be exposed to the demands and reality of the workplace so
that they will have up-to-date information for preparing their students. The respondents felt that some
lecturers only taught theory, neglecting hands-on experience. Graduates felt that entrepreneurship
courses should be offered by universities, with an emphasis on practical aspects. They felt that merely
exposing students to entrepreneurial theory would not be very useful.
Can social and interpersonal skills be taught?

According to employed graduates, social and interpersonal skills could not be taught by HEIs. Universities
could come up with many activities, but as one employed graduate stated it is difficult for universities to
teach these kinds of skills. Academics felt that the extra-curricular programmes and activities could help
students to improve their social and interpersonal skills, but agreed that these kinds of soft skills could
not be easily taught at university level.
Should HEI curricula be re-structured to improve employability?

According to both employed and unemployed graduates, there is a need to realign the curriculum, as
well as the teaching and learning environment to the needs of the work-place. Graduates believed it
was important for universities to align courses with the world of work and employment opportunities.
Respondents from Universiti Tenaga Nasional noted that employers should play a role in structuring
university courses to ensure graduates have the skills required for employability. Respondents from
the International Islamic University Malaysia (IIUM) agreed. IIUM is believed to have a well-structured
programme to enhance graduates employability (see Appendix 1).

In general, the employers believed that university curricula should be revamped, and employers should
provide input into the subjects being taught. Furthermore, more time should be given to practical
experience. Employers also felt that lecturers should get real world industry work experience and convey
this experience to their students.
Most employers felt that graduates who had undergone internship programmes with well-known
companies were of great value to employers, particularly if the internship was longer than three months.
However, some employers disagreed, saying that internships were difficult to manage and monitor. For
example, one respondent commented, We do have internships but not often because it is difficult for
us to monitor them. We are running on a tight schedule and have limited manpower to manage interns.
Most graduates thought internships were useful for securing a job. Some respondents suggested
internships should be scheduled in the final semester to give them the required experience to obtain a
job upon finishing their internship. Other graduates, such as PSDC trainees, believed that while internships
could be useful, they did not gain much experience during their internships because employers did not
trust them.
According to the respondents from NGOs, graduates and lecturers should be exposed to civil society
activities during their semester breaks. They should see life outside the ivory towers by familiarizing
themselves with NGO-type projects.
What are the constraints in producing employable graduates?

According to employers, the main constraint on producing employable graduates could be traced to a
curriculum that did not fit the needs of the workplace. Employers also noted an over-supply of graduates
to some extent, particularly IT graduates, because there were not enough large IT companies in Malaysia
to absorb all the graduates.
Employers also believed that the graduates were rather uninformed about the need to establish and
follow a career path. Many graduates showed a half-hearted attitude towards work but expected to
be paid high salaries immediately without going through a due process of gaining experience over
time. Surprising, responses from the graduates themselves reinforced this observation. One graduate
complained that the specifications of his previous job (salary, duration of work, work load) were not
satisfactory, even though it was his first job and he had little experience in the workforce.
Companies and NGOs could not train graduates themselves due to insufficient budget, human resources
and time. They would prefer industry-ready experienced graduates. This places a great burden on HEIs
to produce graduates who can meet the industries needs for economic purposes, and at the same time,
also prepare their students to serve society effectively and positively.
Summary
The study used a qualitative approach to survey the opinions of graduates, employers and academics
regarding the employability of graduates in Malaysia. Information was collected through focus group
interviews. In addition, other documents were used to provide additional information. The data were
analysed and interpreted through content analysis.
The study found that there is general agreement among employers and graduates that changes are
needed in higher education in order to make graduates more employable from the perspective of the
industry. Employers want students to be trained according to the needs of the workplace and want to do
away with subjects which are irrelevant to the needs of the working world. Academics agree that some
changes are needed but emphasize these changes must balance the demands from the industry against
the needs of civil society and social development. Currently, the discourse on graduate employability
is framed within the context of industry-readiness. However, industry-readiness does not bring about
a socially oriented economy and knowledge society. HEIs must reclaim their role as socially relevant
institutions that produce graduates with the necessary attributes for a sustainable society that is just and
peaceful.

Recommendations
The following recommendations are directed at employers, the MoHE and HEIs:
rThe discourse on employment has to shift from focusing on industrys needs to focusing on societys
needs.
rEmployers, the MoHE and HEIs have to reorient their understanding of employability and its constituent
core attributes, so that HEIs are meeting the needs of society rather than the needs of industry.
rThis perspective has to be translated into the core activities of the university.
rThe MoHE and HEIs should review the learning outcomes of their respective programmes and curricula
to incorporate the inculcation of attributes needed for a socially-oriented economy and a knowledge
society.
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Employability of graduates in the Philippines
Ethel Agnes P. Valenzuela and Elaissa Marina E. Mendoza20
Introduction
For many Filipinos, education is regarded as an investment that affords them a way out of poverty. It is
seen as the key to improving the quality of life, the primary means for social and economic elevation.
Parents spend their scarce resources to have their children educated, hoping that a good education
will lead to attractive jobs for them. The value of education in national development is also enshrined
in the Philippine Constitution which states that The State shall give priority to education, science and
technology, arts, culture, and sports to foster patriotism and nationalism, accelerate social progress, and
promote total human development (The Constitution of the Philippines, 1987). Access to education
holds both individual and national implications.
Yet many graduates find themselves unemployed after earning a degree, despite the high value and
expectation placed on education. Thousands of young university or college graduates can be seen
lining up in job fairs around the country in search of elusive employment opportunities. According
to a study by UNESCAP (2000), youth are the least employable among different age groups. This is
validated by quarterly statistics from the Philippines National Statistics Office (NSO). In July 2009, youth
unemployment accounted for more than half of the total unemployed. Young persons in the 15 to 24
age group numbered 1,542,000 or 52.7 percent, dominating the unemployed workforce (NSO, 2009). This
trend has been on the rise.
In the Philippines, the economys difficulty in absorbing the high number of new entrants to the labour
force is a familiar refrain. Graduates voice their frustration at not being able to land a job, particularly a job
that is well-paid and secure. Even with employment opportunities in the business process outsourcing
(BPO) sector, few were hired for these positions.
With the current global economic slowdown, this issue of graduate unemployment has become an even
graver reality. As the labour market decline poses negative social and economic costs, the effects are
felt most significantly by young people. Studies have shown that the experiences of new entrants to
the labour force have a profound influence on their future social, economic and behavioural fortunes
(Green et al., 2005). For instance, job seekers or young workers who encounter negative experiences
have a higher probability of encountering further work-related disadvantages later in life, as well as social
exclusion, poverty and ill health (Mitchell and Muysken, 2008, cited in Baum and Mitchell, 2008). The
inability to be gainfully employed cultivates a sense of vulnerability and inadequacy among the youth
(and the educated) which in turn can lead to other social ills and conflicts such as youth violence and
illegal activities (UNESCO, 2007; Bandara, 2005). The cost to the wider society and economy is significant.
This study examines graduate unemployment in the Philippines from the perspective of recent graduates,
higher education institutions (HEIs) and employers. It seeks to determine the factors that influence
graduate unemployment, to what extent the concept of employability plays a role in this, and to provide
recommendations for resolving the challenges.
Overview of the unemployment situation

As the Philippines reels under the impact of global recession and economic slowdown, there is a clear
pressure on the domestic labour market to withstand the onslaught and to show resilience. However,
the unemployment rate remains high. In January 2009, it rose slightly to 7.7 percent from 7.4 percent
in January 2008, representing a 0.3 percentage point year-on-year increase (NSO, 2009). The Philippine
Institute for Development Studies estimated that the full year unemployment rate for 2009 stood at 8 to
9 percent. In absolute numbers, the total amount of unemployed people in January 2009 was 2,854,000,
up 6.7 percent from the previous years 2,675,000.
20 SEAMEO INNOTECH, Philippines.

Table 1: Unemployment in the Philippines, January 2009, 2008, 2007
Total unemployed persons (thousands) Unemployment rate (%)
Indicator
2009 2008 2007 2009 2008 2007
Male 1,829 1,741 1,794 8.0 7.8 8.1
Female 1,026 935 1,055 7.2 6.7 7.4
Total 2,855 2,676 2,849 7.6 7.25 7.8
Source: NSO Labour Force Survey, January 2009
The Philippines unemployment rate is the second-highest among the Association of Southeast Asian
Nation (ASEAN) member countries, with Indonesia registering the highest at 8.4 percent (Adriano, 2009).
This is indeed high especially if compared to the end-of-year unemployment rates in Thailand, Singapore,
and Malaysia at 1.4 percent, 2.6 percent and 3.3 percent respectively.
Critics have even accused the Philippine government of understating these figures when it decided to
change the official definition of unemployment in 2005. Before April 2005, the Philippines concept of
unemployment was defined differently from that being used by the International Labour Organization
(ILO). With the approval of National Statistical Coordination Board (NSCB) Resolution No. 15 Series of 2004,
a person is now considered unemployed if she or he is 15 years old and above as of last birthday and has
satisfied these three criteria simultaneously (Virola, 2005):
rWithout work, i.e. not employed in a job or business during the basic survey reference period;
rCurrently available for work, i.e. available and willing to take up work in paid employment or self-
employment during the basic survey reference period, and/or would be available and willing to take up
work in paid employment or self-employment within two weeks after the interview period; and
rSeeking work, i.e. had taken specific steps to look for a job or establish business during the basic survey
reference period; OR not seeking work due to the following reasons: (a) tired/believe no work available,
i.e. discouraged workers who looked for work within the last six months prior to the interview date; (b)
awaiting results of previous job application; (c) temporary illness/disability; (d) bad weather; and (e)
waiting for rehire/job recall.
The government justified this change by saying that the availability criterion, which was missing prior to
2005, was formally adopted to make the working definition more conceptually correct and to be fully in
line with the international standards as prescribed by the ILO.
Other groups are claiming that if the old definition is applied, the unemployment rate would be even
higher than it already is. According to the IBON Foundation, the actual number of unemployed could be
4.2 million, a figure 50 percent higher than the official one (IBON, 2009). This is because by adopting the
new unemployment definition, the government has effectively excluded the discouraged workers who
are not looking for work for more than six months, and those not available or willing to take up work,
even if they do not have jobs at the time of the survey.
Graduate unemployment situation

The workforce continues to grow aided in no small measure by the increasing number of graduates
entering the labour market each year. Except for a slight dip in 1997 and in 2003, the number of graduates
has been rising steadily (see Table 2). After 2003, the number of graduates further increased to 409,722
in 2004 and 491,320 in 2007 (NEDA, 2009). Filipinos, it would appear, have become increasingly better
educated. Among the four Asian countries cited in an Asia Development Bank study (ADB, 2007), the
Philippines population was considered the most highly educated relative to those of India, Indonesia
and Thailand based on enrolments in tertiary education.

Table 2: Higher education enrolees and graduates by academic year
School year Number of HEI enrolees Number of HEI graduates
1994-95 1,871,647 312,667
1995-96 2,017,972 328,120
1996-97 2,061,300 335,257
1997-98 2,067,965 307,027
1998-99 2,279,314 334,564
1999-00 2,373,486 350,807
2000-01 2,430,842 363,640
2001-02 2,466,056 383,839
2002-03 2,426,976 401,787
2003-04 2,420,856 386,920
2004-05 2,402,315 409,722
Source: CHED, 2005
No recent figures on the unemployment rate among fresh college graduates are available. However, there
are data on the unemployment rate among Filipino college graduates in general. As Table 3 reveals, the
number of college graduates among the unemployed has been rising. It also shows that the proportion
of unemployed college graduates is even higher than the unemployed elementary graduates and the
unemployed high school dropouts.
Table 3: Unemployed persons by highest grade completed, 2007-July 2009 (in thousands)
2007 2008 July 2009
No grade completed 18 14 15
Elementary 401 380 393
Undergraduate 184 173 183
Graduate 217 207 210
High School 1,222 1,237 1,313
College 1,013 1,086 1,201
Source: NSO Labour Force Survey, July 2009
A similar trend can be deduced from the figures for unemployed youth (defined as those within 15 to
30 years of age in the Philippines). More college graduates than elementary graduates and high school
dropouts can be found among the unemployed youth (Table 4). The possession of a college degree, it
seems, no longer assures one of employment.

Table 4: Unemployed youth (15-30 years old) by highest grade completed, 2007-2009
(in thousands)
2007 2008 2009 (January)
No grade completed 8 6 3
Elementary 215 205 218
Graduate 115 110 21
High School 916 942 948
College 774 830 884
Source: NSO Labour Force Survey, January 2009
Other data from the NSOs Labour Force Survey (LFS) provide insight into graduate unemployment.
Assuming that most graduates are within the 20 to 24 years old age range, the LFS data for this group can
also be used for the purpose of this paper. From 2002 to 2004, the youth from this age group comprised
the biggest sector of the unemployed in the country (Table 5).
Table 5: Unemployment by age group, 2002-2004

2002 2003 2004
Age Number Unemployment Number Unemployment Number Unemployment
(000) rate (%) (000) rate (%) (000) rate (%)
15 - 19 812 24.1 749 23.1 849 24.7
20 - 24 1,107 24.2 1,112 23.3 1,160 23.4
25 - 34 873 11.5 961 11.3 1,032 10.8
35 - 44 443 5.9 436 5.8 464 6.0
45 - 54 329 5.5 335 5.8 365 6.6
55 - 64 188 5.8 221 6.9 262 8.3
65 and over 123 7.3 122 7.7 118 8.0
Total 3,875 11.4 3,936 11.4 4,250 11.8
Source: NSO Labour Force Survey, 2004
More recent figures reinforce this gloomy picture. Among the youth population, it is also the age
group of 20-24 years which has the highest unemployment rate from 2007 to January 2009 (Table 6).
An increasing trend can be observed, therefore, in both the pre- and post-2005 official definition of
unemployment. These data further support the conclusion that graduate unemployment exists and that
the phenomenon is on the rise. Anecdotal evidence tends to lend support to this statement.
Table 6: Youth unemployment by age group, 2007-2009 (in thousands)

Age 2007 2008 January 2009
15 - 19 496 517 480
20 - 24 839 872 924
25 - 30 577 593 648
Total 1,912 1,982 2,052
Source: NSO Labour Force Survey, 2009

Previous studies reinforce this observation. In a 1999 study conducted by professors at Mindanao
Polytechnic State College, it was shown that some 41 percent of males and 50 percent of females were
likely to remain without work after graduation (Padua and Daguay, 1999, cited in Ramota, 2005). This
same study revealed that only 40 percent of the total number of graduates became employed within a
year of graduation while the other 40 percent found work only in the following year. The remaining 20
percent would be unemployed for the next two years.
As these figures suggest, the relationship between educational attainment and unemployment is quite
complex and dependent on a number of factors which include a countrys level of economic development
(UNESCAP, 2006). In countries where the level of economic development is low, the unemployment rate
among educated youth is also low as a result of the high demand for educated workers. However, in
countries where the economies are in transition or where economic development has not been able to
keep step with the rapid rise in the educational level of the population, the unemployment rate among
the educated youth is quite high.
The Philippines situation conforms to this observation. Its economy has undergone only minor changes
apart from a shift from agriculture to services and rising unemployment (ADB, 2007). Furthermore, having
a highly educated population means having more educated workers in every occupation including
low-productivity jobs such as drivers, household help, security guards and retail sales staff. The median
educational attainment, for instance, among taxi drivers in the Philippines is Grade 10, while those in
Indonesia, India and Thailand are Grades 9, 7 and 6, respectively. It is unlikely that such low paying and
menial professions are attractive to people with a good education unless they have no other alternatives.
Rather than face unemployment, such jobs are temporary solutions until better opportunities come
along.
Clearly, the production of educated workers is faster than the creation of jobs in sectors that have
historically employed them. This dilemma has led to relatively smaller increases in the number of people
employed in professional and technical fields compared to the number of labourers, unskilled workers,
service workers and shop and market sales workers. Thus, while there were more than 400,000 higher
education graduates, the number of people who found professional jobs increased by only 75,000 from
1,524,000 a year earlier to 1,599,000 in July 2009, accompanied by an increase of 37,000 technicians and
associate professionals from 885,000 to 922,000 for the same period. On the other hand, the number of
labourers and unskilled workers surged by 460,000, and service and sales workers by 255,000 (NSO, 2009).
The shortage of available jobs in certain professions or fields has forced graduates to accept employment
not in line with their academic background. A survey by the Bureau of Labour and Employment Statistics
showed that between January 2007 and June 2008, 13,540 candidates applied for 1,347 nursing vacancies
in selected establishments outside the usual range of employment (BLES, 2008). The massive numbers of
applications compared to the limited number of vacancies is of great concern. Some graduates choose to
remain unemployed until a satisfactory job comes along. As UNESCAP (2006) noted, the unemployment
among educated youth may also be partly attributed to the search for good jobs and to the rejection of
jobs perceived to be bad according to social or cultural norms. In such cases, graduate unemployment
may be voluntary as these new entrants shop around for a suitable job and evaluate career options
(Arcelo and Sanyal, 1987), if they can afford to do so.
Employability of graduates
In insecure environments characterized by high unemployment, the concept of employability emerges
as a crucial contributor to career success (Fugate et al., 2004). Employability is difficult to define
comprehensively and concisely since it is used in a variety of contexts and has a range of meanings
(Hillage and Pollard, 1998). Traditionally, it is recognized as the ability to gain and maintain employment
both within and across organizations (Finn, 2000). It implies the possession of qualities and competencies
that are required to enable graduates to enter and maintain employment throughout their lives. In this
definition, employability is clearly a characteristic of the individual. It is a one-dimensional, outcome-
based definition that places the individuals skills at the centre of the concept (McArdle et al., 2007).
However, there has been a movement towards using a broader framework that focuses on the manifold
aspects of employability. These efforts have adopted a more holistic approach that takes into consideration

the roles of both individual characteristics and labour market conditions; that is, the supply and demand
side of employability. Hillage and Pollard (1998) developed a broad definition that involves three main
elements:
1. The ability to gain initial employment, which creates an interest in how the education system deals
with the key skills, career advice and an understanding of the world of work.
2. The ability to maintain employment and engage in transitions between jobs and roles within the
same organization that would allow one to meet new requirements.
3. The ability to obtain new employment.
This definition covers both the unemployed looking for work and the employed seeking alternative jobs
or promotion. Hillage and Pollard (1998, p. 12) added that:
For the individual, employability depends on the knowledge, skills and attitudes they possess, the way
they use those assets and present them to employers and the context (e.g., personal circumstances
and labour market environment) within which they seek work.
From this framework, the complex interaction of the following is deemed important:
rEmployability assets which include basic skills and essential personal attributes, work-specific skills, and
skills which contribute to organizational performance (e.g., teamwork).
rPresentation, which refers to the ability to secure an appointment to an appropriate position by
demonstrating employability assets (e.g., competent completion of application form and curriculum
vitae).
rDeployment defined as a range of abilities such as career management skills (e.g., awareness of ones
own abilities and limitations, decision-making skills) and job search skills.
rContext factors, which refer to the interaction of personal circumstances and the labour market.
Building upon this framework, McQuaid and Lindsay (2005) developed a holistic model that has three
main interrelated components or factors that influence the level of employability, namely:
1. Individual factors: These include employability skills and attributes, demographic characteristics,
adaptability and mobility. These are the supply-side employability issues covering the essential
attributes (e.g., basic social skills), personal competencies (e.g., motivation, confidence, etc.), basic
transferable skills (e.g., literacy, numeracy), key transferable skills (e.g., problem-solving, communication,
adaptability, teamworking skills), qualifications and educational attainment.
2. Personal circumstances: These cover the contextual socio-economic factors related to the individuals
social and household circumstances (e.g., family and caring responsibilities, access to resources).
3. External factors: These include labour demand conditions (macroeconomic factors, vacancy
characteristics, recruitment factors) and enabling support factors (e.g., accessibility of public services
and job-matching technologies).
Such broad ranging definitions have been useful as a means of analyzing the barriers to work among
the unemployed. It is an approach that does not solely look at supply-side solutions and therefore avoids
putting the blame on the victim. The lack of employability is thus seen as the outcome of a complex web
of factors that are found not just in the individuals characteristics but also in the labour market, schools,
recruitment procedures of businesses and policies implemented by government (Kleinman and West,
1998). Employability, as argued, should be understood within a framework that considers both individual
circumstances and the broader external (i.e. economic, social and institutional) factors that influence the
persons ability to land a job.
In order to understand the concept more fully, the full range of factors affecting the ability of individuals
to attain the quality of being employable need to be investigated. This would allow the identification of
not just a subset of the barriers that prevent a person from being employed (e.g., employability skills), but
other key interrelated barriers too.
The employability framework used in this paper is based on such a premise that the supply-side factors
used to examine unemployment risk are too narrow and ignore the crucial demand-side factors.

Role of higher education institutions
Since the nature of the education system has often been pinpointed to be responsible for the graduates
inability to be readily absorbed into the labour market, the role of the HEIs will be emphasized in this
paper. It has been suggested that existing undergraduate programmes are not producing graduates who
possess the kind of professional and lifelong learning skills that they need to be successful in their careers
(de la Harpe et al., 2000). The higher education system has failed to closely match the needs of the current
labour market (United Nations, 2005). This mismatch between the kind of education being provided and
the demands of the labour market has been cited many times in the literature (e.g., Egulu, 2004). As a
result of this lack of fit, the educated young person becomes disadvantaged because the skills she or
he has learned in the university are not those required in the labour market. Thus, even with a degree, a
person is not guaranteed paid employment owing to this mismatch between skills and available jobs.
How this mismatch is manifested in the Philippine setting will be described later in this paper.
Research framework
This studys framework follows the general principles and guidelines agreed upon during the Experts
Meeting on Graduate Employability held in Penang, Malaysia on 1112 February 2009. It specifically
focuses on the undergraduate level and not on the postgraduate level. It also builds upon previously
published studies on graduate employment. This case study involved conducting a validation survey,
focus group discussions and key informant interviews to determine the employability of Philippine
graduates, the nature of their problems, and the causes of their unemployment.
With the aim of understanding graduate unemployment and the role employability plays, this study
seeks answers to the following questions:
rIs there graduate unemployment in the Philippines?
rWhat are the factors responsible for graduate unemployment in the Philippines?
rWhat are the government policies to address these problems?
The following objectives guided the conduct of this study:
rTo examine unemployment among Filipino graduates and contributing factors from the perspective of
new graduates, HEIs and employers.
rTo identify the individual characteristics of the graduates and other external demand factors which
affect their employability and employment status.
rTo determine the current government policies which address the problem of graduate unemployment
and employability.
This study is a quantitative and qualitative undertaking that employs the survey method and key
informant interviews. Using the purposive sampling method, survey questionnaires were developed,
pre-tested and administered to recent graduates, both employed and unemployed.
A graduate is defined as someone who has completed formal studies at a (HEI and has earned a minimum
of a bachelors degree. An unemployed graduate, based on the governments official definition, is one who
has earned a degree but is without work, is available for work, and is actively seeking paid employment.
An employed graduate is one who holds a full time job at the time of the survey.
To enrich the data from the survey, select HEIs (represented by the heads of Student Affairs) and employers
(represented by their Human Resource managers) were interviewed for their analysis of the situation
under study.

Scope and limitations
The current study is a small, indicative one with a limited sample size and scope. It covers 30 graduates
who earned their degrees in 2008 and 2009. The study has also been limited by the lack of official data on
the unemployment rate among recent graduates who are ready to enter the labour force. To give an idea
of graduate unemployment in the Philippines, some proxy indicators are used instead.
Key findings
Perception on employment by graduates
Profile of respondents
More than half of the graduate respondents (54 percent) in the sample were unemployed and actively
looking for a job, while the remaining were employed in their first or second full time job (46 percent).
There were slightly more female respondents (51 percent) than male (49 percent). Respondents were
aged19 to 25 years. About 39 percent of the respondents were married while more than half were single
(61 percent).
Most of the respondents were Roman Catholics (67 percent) while the rest were of other religions and
faiths (33 percent). Table 7 provides a summary of the demographic information.
Table 7: Summary of respondents background information

Frequency Percentage
Sex
Female 66 51
Male 64 49
Employment status
Employed 60 46
Unemployed 70 54
Marital status
Single 79 61
Married 51 39
Religion
Catholic 87 67
Others 43 33
Course/degree
A considerable number of respondents received their degrees from private universities (60 percent);
some from public colleges and universities (30 percent), while a few did not indicate the schools where
they graduated (10 percent). The majority earned their degrees in 2009 (80 percent); the rest earned
theirs in 2008 (20 percent).

Figure 2: Percentage distribution by type of university
10%
30%
No answer (10%)
Public universities (30%)
Private universities (60%)
60%
Source: SEAMEO INNOTECH, 2009
Nursing was the most common course among the respondents (27 percent), followed closely by
business- and IT-related courses (20 percent each). The rest studied psychology (10 percent), hotel and
restaurant management (7 percent), and electrical engineering (7 percent). This distribution more or less
reflects the national distribution of graduates per discipline group where business administration and
related courses, medical and allied sciences (e.g., nursing), and computer science courses are among the
top five disciplines that produce graduates (Table 8).
Table 8: Top higher education graduates by discipline group (top 5), 2000-2004
2000-2001 2001-2002 2002-2003 2003-2004
Business admin and related 106,559 109,486 110,870 101,119
Education and teacher training 71,349 77,555 80,863 71,851
Engineering and technology 45,041 48,861 53,487 50,679
Medical and allied 27,296 26,474 33,296 41,688
Mathematics and computer science 33,059 37,354 36,223 35,367
Source: CHED, 2005
When respondents were asked to rank the reasons for their course choice, the most popular reasons
were the courses prospect for immediate employment and its affordability for the family (Table 9). The
influence of family and a courses prospect for employment abroad were also ranked highly. These top
reasons suggest that for the youth, the course has to be something that will be affordable for the family
to support, and will help to secure employment immediately after graduation.

Table 9: Top reasons for choosing the course
Reason Mean
Prospect for immediate employment 3.85
Affordable for family 4.37
Personal interest 4.44
Influence of family and/or relatives 4.57
Opportunity for employment abroad 4.89
Prospect of attractive compensation 4.73
Good academic performance 5.12
Status or prestige 5.12
Influence of friends 5.85
Inspired by role model 6.04
Disaggregating these responses according to employment status yielded a slightly different picture.
For the employed graduates, the top three reasons were personal interest, prospect for immediate
employment and prospect of attractive compensation (Table 10). For the unemployed graduates, on the
other hand, the most popular reasons were prospect for immediate employment, affordability for family
and opportunity for employment abroad.
The possibility of immediate employment was consistently ranked high by both the employed and
unemployed graduates. This corresponds with findings from previous studies that likewise saw the
prospects of post-graduation employment as one of the major factors influencing a students choice
of course (Arcelo and Sanyal, 1987; Maharasoa and Hay, 2001). It is also interesting to note that personal
interest was a more compelling reason for the employed than for the unemployed. It is possible that
personal interest becomes more salient for these graduates because the need for employment has
already been satisfied. On the other hand, the opportunity for employment abroad ranked more highly
among the unemployed relative to the employed. Interestingly, the opinions of friends and family also
had a significant influence on course selection.
Table 10: Top reasons for course choice among employed and unemployed graduates
Employed Unemployed
Reason Mean Reason Mean
Personal interest 3.9 Prospect for immediate employment 3.5
Prospect for immediate employment 4.7 Affordable for family 4.0
Prospect of attractive compensation 4.9 Opportunity for employment abroad 4.3
Affordable for family 5.2 Influence of family and/or relatives 4.38
Influence of family and/or relatives 5.4 Status or prestige 4.5
Good academic performance in high school 5.9 Prospect of attractive compensation 4.63
Inspired by role model 6.0 Good academic performance in high school 4.63
Influence of friends 6.8 Personal interest 5.0
Opportunity for employment abroad 6.10 Influence of friends 5.56
Status or prestige 6.10 Inspired by role model 6.06
Since only 13 percent of the respondents thought their degrees had little or no impact on their job
prospects (Figure 3) and a resounding 72 percent said their degrees had not worsened their job prospects
(Figure 4), it is clear that most graduates valued their higher education degrees. Nonetheless, it would
be necessary to investigate why 13 percent considered their degrees to be of little use in getting a job
and 7 percent believed they were disadvantaged by their degrees if their concerns are to be addressed.

Figure 3: Degree has little or no impact on job prospects
60%
50%
40%
30%
20%
10%
0%
Agree Neutral Disagree + strongly disagree
13% 33% 54%
Figure 4: Degree worsened my job prospects

80%
70%
60%
50%
40%
30%
20%
10%
0%
Agree Neutral Disagree + strongly disagree
7% 21% 72%
University/college
The highest ranked reason for choosing a particular university or college was its affordability, followed
by the influence of family and/or relatives (Table 11). The prospect for immediate employment was not
as highly ranked as in the selection of the course. It is possible that the universities that were more often
associated with high prospects for employment were those beyond the reach of the respondents.
Table 11: Reason for choosing university/college

Reason Mean
Affordable for family 2.27
Influence of family and/or relatives 2.37
Status or prestige 2.92
Influence of friends 3.40
Prospect for immediate employment 3.75
Not admitted to original choice for university 4.95

Career/job placement service
More than half of the respondents indicated that their HEIs offered career or job placement services,
with 62.5 percent from this cohort noting that they had used such services. Furthermore, 78 percent of
employed graduates versus 45 percent of unemployed graduates said their universities provided these
services (Table 12), although the chi-square analysis did not reveal a significant difference between the
means.
Table 12: Employment status by presence of career/job placement service

University offers career/job placement
Status of employment Total
Yes No
Employed Number 7 2 9
% 78 22 100
Unemployed Number 9 11 20
% 45 55 100
Total Number 16 13 29
% 55 45 100
Curriculum/Methods of instruction/Quality of faculty

In general, the respondents had a high regard for their universities, curriculum and pedagogy regardless
of whether they were employed or not. The quality of faculty was rated as being above average (40
percent) and excellent (23 percent). Most of the respondents (70 percent) found their curriculum to
be helpful in developing their employability. They also considered the course contents to be excellent
(27 percent) or above average (40 percent). Likewise, 40 percent said the methods of instruction to be
average, 37 percent above average and 23 percent excellent. It would seem that most of the graduates
did not see their training to be responsible for their difficulties in landing a job.
Extra-curricular activities
The HEIs extra-curricular activities also received positive responses with 37 percent saying they were
above average and 27 percent excellent. This was reinforced by the relatively high level of involvement in
such activities 60 percent being very active compared to 3 percent being not active. The extra-curricular
activities found to be most popular were memberships in academic organizations and involvement in
volunteer or service-related work, followed by sports and athletics. More of the employed graduates (70
percent) were involved in academic organizations compared to the unemployed (33 percent) (Table 13).
The chi-square analysis showed a marginally significant difference between the means (F=3.475, p=.062).
Table 13: Employment status by academic organization

Involved in academic organization
Status of employment Total
Yes No
Employed Number 7 3 10
% 70 30 100
Unemployed Number 6 12 18
% 33 67 100
Total Number 13 15 28
% 46 54 100

Actions in preparation for future employment
The most common action students did before graduation to look for employment was browsing
newspapers, websites and magazines for job opportunities (50 percent), followed by researching on
specific careers (47 percent). Attending job fairs was also fairly common (43 percent) as well as writing/
updating their resumes (37 percent) and asking faculty for career advice (37 percent).
Attendance at job fairs seemed to be significantly different between the unemployed and employed
graduates (F=3.910, p<.05). Most of the employed graduates visited job fairs while most of the
unemployed did not (Table 14).
Table 14: Employment status by attendance at job fairs

Yes No Total
Employed graduates 7 3 10
Unemployed graduates 6 13 19
Total 13 16 29
Job search
Close to half of the respondents looked for work within a month after graduation (47 percent); some
within two to three months (13 percent); others within four to six months (17 percent). Among the
unemployed graduates, almost all were still looking for their first job at the time of the survey (90 percent).
The most popular means for looking for a job were through the internet (63 percent), walk-in interviews
(60 percent) and job fairs (57 percent). The prevalence of internet job searches is not surprising given
that the current generation grew up with this technology. Employment agencies were the least used (20
percent).
About 30 percent of the unemployed graduates said they had submitted two to five job applications on
average, with 20 percent having submitted 21 to 30 applications and others were able to submit only
one or two applications. It is possible that those with fewer applications graduated just a month or two
before prior to the survey. Forty percent employed graduates submitted between 11 and 20 applications
before they were hired, with 80 percent taking from one to six months to eventually land a job. Only 20
percent became employed within a month after graduating.
The top-ranked characteristics unemployed graduates looked for in a job were starting salary, relevance
to course and interest. For the employed graduates, the most considered characteristics were relevance
to course, interest and proximity to their domicile. Both groups valued a jobs relevance to their study
and interest highly. However, the starting salary seemed to be a much more important consideration for
the unemployed than for the employed. On the other hand, proximity to ones house was ranked more
highly for the employed than for the unemployed. These comparisons should be treated with caution,
though. The employed were considering these characteristics after the fact, evaluating these features
in hindsight. In contrast, the unemployed were assessing the characteristics within their current job-
hunting framework.

Table 15: Comparison of job considerations between employed and unemployed
graduates
Employed Unemployed
Reason Mean Reason Mean
Relevance to course 3.56 Starting salary 2.83
Interest 3.89 Relevance to course 3.28
Prospect of attractive compensation 4.22 Interest 3.44
Proximity to house 4.56 Prospect for career advancement 3.63
Starting salary 4.78 Reputation of company 4.06
Prospect for career advancement 5.33 Potential for travel 4.26
Reputation of company 5.67 Benefits package 4.41
Benefits package 7.33 Proximity to house 4.94
Recommended by family and/or relatives 7.78 Regular schedule 5.11
Potential for travel 7.89 Recommended by family and/or relatives 7.00
Useful competencies learned in college

Many employed graduates perceived the relevance of their courses to be the key factor in getting a
job. Intellectual skills were also a contributing factor as well as academic performance and character/
personality. The qualification from an institution with a good reputation was not as big a factor.
The employed graduates also cited adaptability/flexibility, intellectual skills, teamwork, interpersonal
skills and communication skills as competencies they had learned in college which have been useful for
their first job. However, research skills, IT skills and entrepreneurship skills were not as useful in their jobs
in comparison.
Reasons for unemployment

The unemployed graduates identified five factors lack of job opportunity, lack of work experience,
low starting salary, family concerns, and mismatch of skills and interest to have contributed to their
unemployed status. In contrast, factors such as the lack of networking connections, health concerns, lack
of proximity to home, lack of opportunity for advancement, and engagement in further studies were
seen to be of less importance.
Self-ratings
All the respondents generally considered themselves to be above average or excellent in their different
skills, giving the highest rating to adaptability or flexibility, followed by teamwork, qualification from an
institution with a good reputation, intellectual skills and interpersonal skills. Interestingly, they did not
rate themselves too highly on communication skills, one that is most valued by employers.
The high positive ratings, however, should be evaluated in light of the survey findings on graduate
unemployment in Malaysia which found that while all graduates believed themselves to be well-qualified,
unemployed graduates tended to overrate themselves and be unrealistic in their self-assessment (Anon,
2003, cited in UNESCO, 2007).

Higher education institutions
Out of the 1,617 HEIs in the Philippines, 1,443 are private institutions. The public institutions consist of
111 state universities and colleges, 50 local universities and colleges, 1 Commission on Higher Education
(CHED)-supervised institution, 9 other government schools, and 5 special schools. About 66 percent of
the higher education students are enrolled in private HEIs.
The Philippine HEIs are acknowledged to play a vital role in meeting the development needs of the country.
Aside from being committed to the pursuit of knowledge, skills, attitudes and values that make Filipinos
productive members of society and improve their quality of lives, these institutions strive to develop the
countrys human resources to become globally competitive (Ricafort, n.d.). Quality, excellence, relevance
and responsiveness are some of the goals that these institutions should be emphasizing.
However, tertiary education in the Philippines is judged to be of low quality because of the following:
low passing rate in professional licensure examinations; incompatibility of the graduates skills with the
desired competencies for the workplace or entrepreneurship; and low employment rates (Syjuco, 2006,
cited in UNESCO, 2007).
The average passing rate across all disciplines in the different licensure exams has been on a steady decline
(Table 16). Data from the Professional Regulation Commission (PRC) showed that the trend continued:
more than 1.4 million students took the different licensure examinations from 2004 to 2008, out of which
only 36.4 percent passed. In 2009, the passing rate had dropped to 35.2 percent (Ronda, 2009).
Table 16: Average passing rate, 2001-2004

Year Average passing rate
2001 48.45
2002 44.85
2003 41.71
2004 39.83
Source: CHED, 2004
Interviews with selected institutions pinpointed the following strategies being applied to make their
graduates more employable:
rHire faculty with good academic qualifications: The academic qualifications of the faculty are important
considerations. Although CHED requires a faculty member to have at least a masters degree in the field
where she or he teaches, only 30.64 percent of the faculty in HEIs have a masters degree, a marginal
increase from 29.88 percent in 2003 (CHED, 2004). On the other hand, those with doctorate degrees
decreased slightly from 9.21 percent in 2003 to 9.09 percent in 2004. There is a need to upgrade
qualifications because improved credentials and teaching methods can contribute to better student
learning that in turn should translate into higher productivity among graduates and higher passing
rates in the professional licensure examinations (CHED, n.d.).
rAdopt curricula which are patterned after those of the premier state university: An established curriculum
means that it has undergone numerous reviews and validation. These curricula have also been known
to emphasize critical thinking, creativity, self-expression, and love of country.
rInvite representatives from the business sector to sit on the Board of Directors: Institutionalizing a
link between the academe and industry will help the HEIs to be more in touch with the needs of the
industry. This will allow the industry to provide input into the curriculum and make it more responsive
and relevant for students to acquire the skills needed by employers.
rImplement more marketable courses and other ladderized programmes (e.g., hotel and resource
management) or short courses to address quantitative mismatches.
rEncourage extracurricular activities among students: This will help to increase the students capacity and
broaden their perspectives. Through such activities, students are able to reflect on their achievements
and the development of their own employability (Yorke, 2001, cited in Lees, 2002).

rInstitute career guidance services: These services will serve as an important step towards improving
employability of university graduates because they can enhance the links between universities and
industry.
rProvide apprenticeships or on-the-job training for students to acquire practical skills.
rOffer quality education that fosters generic skills that make students more appealing to a variety of
employers across multiple work contexts and disciplines. This is in line with a suggestion that higher
education develops generic competencies which would prepare students for the workplace (Warn and
Tranter, 2001). By developing these generic competencies, students become adaptive and adaptable.
Employers
From the employers perspective, employability is the tendency of graduates to exhibit attributes or
characteristics that employers foresee as necessary for the effective functioning of their organization
in the future (Harvey et al., 1997). Studies have shown that employers, at least those from the private
sector, tend to look for more than the educational credentials (Gunawardena, 1993). For them, education
should be viewed in the broader sense, with learning not confined to what is learned from the book;
rather it entails the development of higher cognitive abilities and applicable transferrable skills, along
with personal development and language proficiency.
Other studies have pointed to the preference of employers for graduates who have self-theories that
are characterized by confidence, optimism and the belief in their ability to make a difference. Employers
likewise want graduates who are able to adapt to the workplace, who can use their skills to advance
the organization, who can participate in innovative teamwork (Little, 2001), and who can display
critical thinking required for innovation and the anticipation of change (Harvey et al., 1997). In a survey
conducted in Sri Lanka (Chandrasiri, 2008), initiative, flexibility and adaptability emerged as the top three
attributes for private sector employment. Other frequently cited attributes include communication skills,
team orientation, trainability, presentation skills, positive attitudes, accountability, ambition, discipline
and civic skills.
For this research paper, interviews with human resource managers from private sector enterprises
representing the IT and health-care sectors were conducted. Respondents likewise underscored several
attributes that they looked for in their potential employees. In the call centre industry, for instance,
communication skills remain the premium criterion. Several studies have pointed out that the rise of
service industries and the use of information technology have made such softer skills more important
in entry-level jobs (e.g., McQuaid, 2006). The overwhelming observation, however, seemed to be that
graduates lacked the ability to communicate well, particularly in English, which is the language used in
the call centres. Other non-local studies confirmed that good communication skills were lacking in many
of their own graduates (Chandrasiri, 2008; Beaven and Wright, 2006).
The employers from the call centre industry also positively evaluated those applicants who displayed good
listening and typing skills, high IQ, strong confidence, persuasive skills, and people skills. It is interesting
to note that in this industry, being a graduate is not a prerequisite for employment. On the other hand,
the attributes that were important for those in the health-care industry were good technical skills, a
nurturing or caring attitude, and customer-orientation. These were generally found to be inadequate in
new graduates necessitating an additional five to six months training to ensure that skills, knowledge
and attitude comply with international standards.
Such skill mismatches, where the graduates qualifications do not meet the needs of the employers, were
a common theme among the key informants. Apparently, the knowledge and skills that were being
transferred by the educational institutions to their students did not coincide with those needed in the
outside world. Another kind of mismatch that employers referred to was the divergence between the
graduates being produced and the type of jobs available. It was mentioned, for example, that many
nurses were found working in call centres.
The increasing difficulty in getting qualified applicants had led the industry to take action. One was to
establish linkages with the academe in selected HEIs to update them on current trends, developments
and standards in the field that need to be incorporated into the curriculum. They had also opened up
internship opportunities for students. This relationship may be getting results as the percentage of
passers from the partner schools in the licensure examinations has improved.
Government policies
Under the Medium-Term Philippine Development Plan (MTPDP) 2004-2010, one of the priority strategies
involves improving the quality of HEIs, programmes and graduates to match the demands of domestic
and global markets. This is further highlighted in the Medium-Term Plan for the Development of
Philippine Higher Education 2005-2010 whose implementation is under the jurisdiction of the CHED,
the governing body for both public and private HEIs. Some of the strategic goals that bear relevance to
the development of graduate employability leading to a decrease in graduate unemployment include:
rQuality and excellence: This is in recognition of the need to upgrade HEI programmes and standards
to facilitate international competitiveness. The major programmes and projects that are being
implemented include: international benchmarking to upgrade policies, standards and guidelines;
competency-based curricula; Centres of Excellence and Centres of Development; autonomous and
deregulated HEIs; technical panels (technical committees, task forces, technical working groups);
regional quality assessment teams; CHED-PRC joint efforts; accreditation; faculty development project;
institutional quality assurance though monitoring and evaluation; strengthening proficiency in English
of college teachers; and evaluation of graduate education.
rRelevance and responsiveness: This is to ensure responsiveness of higher education to the labour
market. Some of the major programmes and projects to address this are: national higher education
research agenda; Republica Awards; curriculum re-engineering and development; integrated research
utilization programme; technology commercialization and corporatization; graduate tracer studies;
utilization of information and communication technology; academe-industry linkages/summits;
retooling and lifelong learning.
Some specific programmes that have been undertaken in support of these goals include:
rScholarship/student financial assistance programmes for higher education: One of the programmes
aims to provide vouchers, expand scholarships and other forms of student assistance that will expand
access to tertiary education, particularly to the priority courses or disciplines (in 2004-2005 these priority
disciplines were maritime education, information technology, agriculture fields, teacher education,
engineering, and health sciences). Another is the student financial assistance programme where
financially disadvantaged third year, fourth year and graduating students enrolled in priority courses
will be provided interest-free student loans whose repayment would start not later than two years after
graduation.
rCentres of Excellence and Centres of Development: These centres, which currently number 275
in various disciplines based in 79 HEIs around the country, have been recognized for their high level
of standards in instruction, extension services and research. Under the MTPDP, the centres will be
sustained while more centres will be identified in priority programmes. The Centres of Development
will be supported for faculty development, instructional programmes and materials development and
networking. They are expected to establish links with the industry to make their programmes more
responsive to the needs of the labour market. In addition, they are expected to provide leadership and
assistance to other HEIs.
rCurriculum updating and upgrading: The MTPDP is committed to undertake activities that will
make higher education curricula more comparable to international standards and more responsive
to national development and industry needs as well as ensuring the employability of graduates.
These activities include strengthening Technical Panels, conducting international benchmarking of
programmes, encouraging the use of ICT in the enrichment of teaching and learning, and promoting
industry-academe links.
rFaculty development programmes: These programmes are intended to upgrade the academic
qualifications of the college faculty in priority fields through provision of scholarships. They support
faculty development, strengthening of graduate education, and exchange programmes with HEIs
in other countries. CHED has also enabled many faculty members to enrol in international training
programmes.

rQuality assurance system: Efforts to strengthen the quality assurance system have been undertaken
such as rationalizing the regulatory and quality assurance policies and programmes, improved
monitoring and evaluation of HEIs, and phasing out poor quality programmes.
Conclusions
Graduate unemployment in the Philippines has largely been attributed to a structural or skills mismatch.
This mismatch occurs because the jobseekers, in general, are not seen by employers as having the
necessary skills for employment (McQuaid, 2006). One area of this mismatch lies in the inadequacy of the
general skills and knowledge among new entrants to the labour force. These new graduates are perceived
to lack the requisite level and quality of communication, technical and job-specific skills needed in the
workplace. Another mismatch can be found in the disparity between the type of graduates or trainees
produced and the type of jobs available. Thus, we have thousands of customer service jobs in the
booming call centre and BPO industries being filled by graduates who have been trained to be nurses
and teachers. The Philippines also has an oversupply of business graduates, as demonstrated by the 22
percent who had business degrees in 2004, many of whom ended up being unemployed (Ramota, 2005).
This current study reveals another closely related mismatch of perceptions between the assessments of
the graduates about their own employability versus the assessment of the employers. Graduates from
this sample tended to rate themselves highly with regard to their employability attributes. They appraised
the training they received from their HEIs positively. This, however, did not coincide with the assessments
from the employers.
In the face of work insecurity and unemployment, employability is increasingly seen as necessary for
individuals to ensure continuous lifetime employment (Hillage and Pollard, 1998). This study confirms that
employability, graduate employability in particular, is a function of a range of individual characteristics.
Individual-level supply-side factors often associated with labour market outcomes are shown to be
important. Some of these employability attributes cited in this study include key transferable skills such
as adaptability, intellectual skills, teamwork and basic interpersonal skills and their usefulness to the
graduates in their jobs. The employed respondents who mentioned the relevance of their courses to
their jobs underscored the importance of academic qualifications and job-specific skills to be successful
in their jobs. Both unemployed and employed graduates in the sample have expressed their desire to get
jobs that are pertinent to their chosen fields. Job-seeking strategies such as the use of the internet, walk-
in interviews and attendance at job fairs demonstrate the respondents use of both formal and informal
search methods. It appears that employed graduates tend to attended job fairs more frequently than
those who were unemployed. This suggests that certain job-seeking strategies may be more effective
in finding employment. It is also interesting to note the greater weight given to starting salary by the
unemployed graduates in the sample (relative to the employed graduates) when choosing a job. This
supports a suggestion that wage flexibility may be important to an individuals employability (e.g., Aberg,
2001).
Aside from the individual factors, external demands are equally important. Many respondents cited
the lack of job opportunities as the main factor for their unemployed status. Labour market conditions,
recruitment and selection procedures, and preferences of the employers have to be taken into account
too. Thus, the premium placed by employers on communication skills will impact the employability of the
graduate. The results of the survey in this report, however, showed that communication skills were not
rated highly by both the graduates and employers alike. On the other hand, mechanisms for matching
labour demand and supply such as providing accessibility to public services and job-matching
technologies (e.g., job fairs, career or job placement services), and implementing measures to ease the
school-work transition (e.g., linkages between academe and industry/employers) are perceived to be
more beneficial.
A broad understanding of employability taking into account individual factors and the contextual factors
is a useful approach particularly when the data and sample size are small. This provides a framework for
developing policies to address the unemployment of graduates. Based on the findings from this study,
the following recommendations need to be considered:

rCHED should conduct regular studies to analyze the employment/unemployment of new graduates
and provide up-to-date information that will assist policy makers to address graduate unemployment.
rMinimum standards for graduate tracer studies should be established, with such studies being regularly
conducted by all HEIs and collated for sharing.
rMore programmes involving apprenticeship, entrepreneurship training, internships and on-the-job
training should be institutionalized in academic programmes, particularly for poor and marginalized
young people. These programmes should help to ease the transition from school to workplace.
rHigher learning institutions need to nurture the development and integration of generic skills, such as
communication and other soft skills, into subjects, courses and programmes to make graduates more
employable.
rEmployment or job placement services, career guidance/counselling and labour market information
especially on less popular careers should be provided by all HEIs to prepare students for work after
graduation.
rCareer management skills can be integrated into university courses starting from Year 1 to be reinforced
by constant input and feedback from faculties, industry and students. Longitudinal tracking of cohorts
can be done to assess how beneficial these programmes are with respect to the development of the
necessary attributes for graduate employability and employment outcomes.
rContinuing university-based career support to recent graduates should be considered especially since
students tend not to think about their future careers until graduation and therefore have a poor idea of
what to expect from life beyond the university (Perrone and Vickers, 2003).
rAcademe-employer partnerships should expand beyond the industry sector and include those not
traditionally sought by graduates such as NGOs, non-profit groups and other private sector organizations.
rWeb-based career guidance portals can be established to facilitate collaboration among the students,
new graduates, career counsellors and employers, and should include links to different career guidance
tools and manuals, and labour demand/supply statistical reports.
rAppropriate and updated labour market information should be provided to bridge the information
gap between HEIs and employers, and between people looking for work and employers. To increase
the availability of labour demand statistics, publication of annual reports that indicate current labour
demand by job sector/classification and scenarios for the next few years should be produced.
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IT graduates employability: Malaysia
Rosni Abdullah, Ahmad Suhaimi Baharudin, Nasriah Zakaria, Faten Damanhoori, Nasuha Lee Abdullah,
Norlia Mustaffa, Rosnah Idrus and Nursakirah Ab. Rahman Muton21
Introduction
The Asia-Pacific region is facing high levels of unemployment and underemployment. The economic
slowdown has reduced the employment growth rates enjoyed by the region in the 1990s (Bandara,
2006). The International Labour Organization (ILO) estimated that the number of unemployed in Asia was
likely to have increased by between 9 and 26.3 million in 2009, compared to 2007 (ILO, 2009a and 2009b).
Thus, governments in the region were urged to invest in their labour forces and provide crisis response
packages to ensure quick recovery.
In Malaysia, the number of unemployed as of the second quarter of 2009 was 415,700 people or 3.6
percent of the total labour force of about 11.45 million (Department of Statistics Malaysia, 2009), with
domestic unemployment rate projected to rise to 4.5 percent by the end of 2010. According to the
Deputy Minister of International Trade and Industry, Mukhriz Tun Mahathir, the figure is high and we
have never reached this high a figure before. At the same time, we are trying to reduce the jobless rate
We need to do something by coming up with creative action to minimise the impact of this current crisis
(The Star Online, 14 Aug 2009).
Annually, Malaysia produces approximately 60,000 graduates from all its higher education institutions
(HEIs). In 2006, the highest graduate unemployment rates were among those in computer science
(19.5 percent), business administration/management (18.5 percent) and engineering (15.3 percent)
(Norshima, 2008). Such high percentages are disconcerting and require a closer examination to address
the underlying causes.
This chapter focuses on the IT graduate employability issue in Malaysia under a UNESCO-initiated research
on graduate employability. The study presents the employment status of IT graduates, identifies the skills
acquired by the graduates in comparison to the skills required by employers, and discusses the concept
of employability. It is hoped that the findings will facilitate more concerted efforts among government
agencies, HEIs and IT companies to re-examine the development of IT curricula and programmes, as well
as to enhance the employability of IT graduates.
Background
In the early 1990s, many universities in Malaysia began offering IT programmes and significant efforts
were made to attract students to enrol in these programmes. To keep pace with changing needs during
the mid-2000s, the IT industry had to realign the job descriptions of their staff to cater to greater demands
for customer support and application maintenance. This in turn requires IT graduates to possess different
sets of skills.
Since then, HEIs have begun changing their curricula or adding activities that would equip their students
with the required skills. The Malaysian government increased funding to create programmes and support
activities to increase graduate employability, such as the Degree++,22 bridging gap, apprenticeship,
entrepreneurship, finishing school and graduate mobility/internship programmes. The government has
also organized seminars to promote the employment of graduates (Japatan Pengajian Tinggi, 2009).
21 Universiti Sains Malaysia, Penang.

22 The Degree++ programme was set up by some universities to provide students with knowledge and skills to increase their
competitiveness.

Definition of employability
Graduate employability is an important issue for higher institutions worldwide, including in Malaysia.
Factors that influence market demand for graduates include the economic situation, technological
advancements and political pressures. Many studies have been conducted on unemployment and
employability to identify the skills sought by employers (Archer and Davison, 2008; Petrova and Medlin,
2009) or to find ways to increase the competitiveness of graduates (Matouek and Ryav, 2007). Some
focused on matching the supply of graduates to the demand of employers, while others examined
the concept of graduateness instead of employability (Walker, 1998; Glover et al., 2002; Shukran and
Morshidi, 2009).
The definition of employability varies from one study to another. It can be seen to be closely related to an
individuals skills (McLaughlin, 1995) or in terms of an individuals characteristics in relation to the labour
market context (Hillage and Pollard, 1998, p.1):
Employability is about being capable of getting and keeping fulfilling work. More comprehensively,
employability is the capability to move self-sufficiently within the labour market to realise potential
through sustainable employment. For the individual, employability depends on the knowledge,
skills and attitudes they possess, the way they use those assets and present them to employers
and the context (e.g. personal circumstances and labour market environment) within which they
seek work.
Employability can also refer to a set of achievements, including skills, understanding and personal
characteristics, which make it easier for the graduates to be successful in the career that they have chosen
(Yorke, 2006). More specifically, he sees employability as being related to three abilities: a) the ability to
gain employment, b) the ability to maintain employment, and c) the ability to obtain new employment
if required. Graduates need skills for employment and also to advance in their careers.
In general, the components of employability include assets, deployment, presentation and the context
of personal circumstances and the labour market. Assets refer to individual knowledge (what they know),
skills (what they do with what they know) and attitudes (how they do it). Deployment is a set of abilities
comprising career management and job search skills. Presentation is the individuals ability to reveal
their assets to the market or potential employers through their curriculum vitae, references, interview
techniques and work experience. The context of personal circumstances and the labour market refers to
the individuals personal situation and the external context, and the relationship between the two (Hillage
and Pollard, 1998). Employability skills involve intellectual skills, personal attributes and knowledge of
organizations and how they work (Coopers and Lybrand, 1998; Lees, 2002).
According to most definitions, a graduates skills, capabilities, competencies and attributes are the key
factors for employability.
Description of the study

This study focused on first-degree IT graduates from HEIs in Malaysia. Since the IT programmes are rather
broad and varied, the degrees conferred on the graduates include Bachelor of Science, Bachelor of
Computer Science, Bachelor of Information Technology and Bachelor of Information Systems. The study
examined the perspectives of three target groups: graduates, academics working at HEIs offering IT
programmes, and employers who hire IT graduates, including multi-national corporations (MNCs), small
and medium enterprises (SMEs), software houses and government agencies (including schools).
This study aimed to answer the following research questions:
rWhat is the level of employment among IT graduates in Malaysia?
rWhat are the knowledge and skills acquired by IT graduates from HEIs?
rWhat are the employability skills needed, as perceived by employers?
rHow do HEIs prepare their students to be employable?

rHow does industry determine the important skills needed when hiring graduates?
rHow does university prepare students to be ready for the job market?
rAre there any differences in expectations of graduate performance and employability among industry,
academics and students themselves?
These questions were investigated using both quantitative and qualitative methods.
Quantitative research design

Data for the quantitative research were obtained from the graduates tracer study conducted between
2006 and 2008 (MoHE, 2009). The objectives of the tracer study were to:
rCollect information about graduates backgrounds in terms of family, education, economy and career
planning.
rIdentify graduates level of satisfaction regarding the services rendered by HEIs.
rHelp in forecasting higher education achievements based on the investment spent.
rMonitor graduates self improvement and career development.
rEnhance networking between industry and government.
Information about the graduates was gathered from all public institutions of higher learning (20
universities) via the Ministry of Higher Education (MoHE) portal in 2006. Graduates were encouraged
to complete the online questionnaires in two phases: pre-convocation and post-convocation. The
timeframe for the data collection was three to six months after completion of study. The total number
of respondents was 283,192, of which 37.6 percent were male and 62.4 percent were female graduates,
while IT graduates made up about 7 percent of the total respondents. The tracer study had a response
rate of between 87.7 and 89.6 percent (Md. Yusof et al., 2009).
Based on the information collected, the study used both descriptive statistics and cross-tabulation to
measure factors that impact employability, together with an Exploratory Factor Analysis with Varimax
Rotation of all the items. This is a cross-sectional study and the unit of analysis is at the individual level.
Variables and measures

For the purpose of this research, the variables measured were the students innate skills, acquired skills,
ability and capability to perform the job, and employability.
The students innate skills were measured through a list of attributes and each attribute was measured
with a five-point Likert-type scale ranging from 1= strongly unsatisfactory to 5= strongly satisfactory.
The attributes were the graduates knowledge/skills acquired from their programme of study which
included general IT skills; proficiency in Bahasa Malaysia (the national language); proficiency in English;
interpersonal communication skills; creative and critical thinking skills; problem solving skills; analytical
skills; teamwork; inculcation and practicing of positive values; and exposure to general knowledge and
current issues.
The students acquired skills were also measured through selected attributes and, again, each attribute
was measured with a five-point Likert-type scale ranging from 1= strongly unsatisfactory to 5= strongly
satisfactory. The attributes were skills gained through the influence of the educational institution,
including self-confidence; maturity; resilience; knowledge; interest in learning; sensitivity to current
affairs; independence or self reliance; creative and critical thinking; readiness to face the working world
and challenges; problem solving and decision making; teamwork; and effective communication.
Similarly, the students ability and capability to perform the job was measured using the same the five-
point Likert-type scale. The attributes measured included workplace adaptability; problem solving and
decision making skills; confidence to perform the task required; working in a team; communication skills;
proficiency in Bahasa Malaysia (spoken); proficiency in Bahasa Malaysia (written); proficiency in English
Language (spoken); proficiency in English Language (written); and ability to use IT applications.

Finally, the IT graduates employability was measured through two objective variables, namely monthly
income (inclusive of allowances) and employment status, which was either permanent, contract,
temporary, self-employed, or working for their own families.
Techniques for data analysis

The data analysis was conducted using the SPSS for Windows 11.5.0 software. The statistical tests were
conducted using descriptive statistics, cross tabulations and goodness of fit measure.
Descriptive statistics were employed to study demographic variables such as ethnic groups, sex, family
income, job status, sponsorship, scholarship, residential status, entry qualifications, mode of study, state
of residence, Malaysian Universities English Test (MUET) qualification, area of specialization, types of
disability, and number of graduates.
Cross tabulations (chi square) were performed between IT graduates monthly income and their
employment sector; between IT graduates monthly income and their employment status; between
IT graduates cumulative grade point average (CGPA) and their employment status, and between IT
graduates monthly income and their CGPA.
Exploratory Factor Analysis with Varimax Rotation was performed on all attributes of innate skills, acquired
skills and on ability to execute the job. Here the researchers applied the two-stage rule to ensure that a
given item represented the construct underlying each factor. The researchers used a weight of 0.35 as
the minimum cut-off (Hair et al, 2006). To avoid problems of cross-loadings, the researchers required that
each item clearly defined only one factor. Operationally, if the difference between weights for any given
item was less than 0.10 across factors, the researchers deleted it from the final scale (Snell and Dean,
1992).
Qualitative research design

Qualitative methods used to gain information included semi-structured interviews and focus group
discussions. The researchers worked with multiple groups of people from the business sector and HEIs to
understand their perspectives on the employability issues. Students were questioned about what they
had learned during their university years, the important skills they had brought to the workplace and
how they had used their skills in their jobs.
Through a convenient sampling strategy (Kvale, 1996; Salkind, 2009; Bryman and Bell, 2007), employers
and academics were recruited for the interviews which were conducted in August and September 2009
over a period of about three weeks. Each interview was conducted at the employers place of work. All
the companies visited were either private or MNC. Most of the employers interviewed had a computer
science, information technology or engineering background. Seeking to understand the criteria
employers used when hiring new graduates, the key questions asked were:
rWhat are the important skills needed by the industry?
rWhat other skills are needed from the employees?
rWhat is your opinion on the relationship between CGPA and employability?
The survey team also interviewed (via phone and email) six academics (heads of departments, deans or
deputy deans) from six universities and conducted a semi-structured interview with a professor from the
United Kingdom during her visit to the university department. The questions were structured to elicit
responses on how their programmes and curriculum had helped to provide the necessary skills for their
students. Each interview lasted about forty minutes.
For the focus groups, the researchers decided to concentrate on students who were pursuing their
postgraduate degrees, e.g., Master of Science, Master of IT Technopreneurship or Ph.D, selecting graduate
students who had a Computer Science or Information Technology undergraduate degree from a local
university and had some minimal working experience. However, some overseas graduates were included
to provide a different perspective. All the participants had worked in either the private or government
sectors.

According to Kitzinger (1995), the number of focus groups should be between six and fifty for a research
study. In this study, however, only two focus groups were conducted because the researchers also used
other data collection techniques (interviews and surveys). Each focus group session lasted about one
hour.
Prior to beginning discussions in the focus group sessions, the moderators gave the respondents a
briefing on expectations of respondents and the respondents were asked to fill in a form that asked
them three fundamental questions:
rDo you think that your academic performance (i.e. CGPA) helps you in your job?
rWhat are the important skills you learned at university?
rWhat are the skills that your employer looked at?
During the focus group sessions, the researchers observed the interactions among group members
(Salkind, 2009) and elicited explanations from the respondents in their own words (Kitzinger, 1995).
Respondents were encouraged to communicate with each other, exchange their experiences, and
comment on each others stories.
Results and data analysis

Profile of the IT graduates
In 2008, a total of 60,311 students in Malaysia graduated with a bachelors degree, out of which 3,568 (5.9
percent) were IT students. Almost two thirds of the IT graduates were female (Table 1).
Table 1: Sex of the graduates

Sex Number Percentage (n=3,568)
Male 1,266 35.5
Female 2,308 64.5
Total 3,574 100.0
It was found that 60.7 percent of the IT graduates obtained employment after graduation, but 39.3
percent were unemployed at the time of the survey (Table 2). Among the female IT graduates, 58.0
percent were employed, while 65.6 percent of the male IT graduates were employed. Although the
majority of IT graduates were females, more females were unemployed (42.0 percent) compared to male
graduates (34.4 percent). This higher percentage of unemployed female graduates indicates that there
may be discrimination in hiring female IT graduates, but more research is needed before any definitive
statements can be made.
Table 2: Employment status

Gender
Status Male Female Total
(percentage within group) (percentage within group)
Employed 65.6 58.0 60.7
Unemployed* 34.4 42.0 39.3
Total 100.0 100.0 100.0
*Unemployed included waiting for a job placement, pursuing postgraduate education or enrolled in a re-skilling programme.
Over two thirds (68.4 percent) of the IT graduates had a monthly family income of RM 2,000 or less (Table
3). Almost all the IT graduates (94.2 percent) had a monthly family income of less than RM 5,000.

Table 3: Monthly family income
Monthly income inclusive of allowances (RM)) Percentage N=3568
<500 9.5
501-1,000 26.0
1,001-1,500 19.3
1,501-2,000 13.6
2,001-2,500 9.7
2,501-3,000 7.1
3,001-5,000 9.0
>5,001 5.8
Total 100.0
US$ 1 = RM 3.4
Almost all the IT graduates (94.9 percent) obtained financial assistance for their undergraduate studies,
and most received funding from the National Higher Education Loan Fund (PTPTN) (Table 4).
Table 4: Sponsorship or scholarship

Sponsors Percentage with sponsorship or scholarship N=3,568
National Higher Education Loan Fund (PTPTN) 82.9
Self-sponsored 5.0
JPA (Public Service Department) 4.0
MARA (Federal agency) 2.3
State government 1.6
Ministry of Education Malaysia 1.0
Ministry of Higher Education 0.3
Telekom (National Telecommunication Company) 0.3
Bank Rakyat, Maybank, CIMB, etc. (Financial institutions) 0.2
Tenaga Nasional Berhad (National Electric Company) 0.1
Bank Negara Malaysia (Central Bank of Malaysia) 0.1
Ministry of Defence Malaysia 0.1
Ministry of Youth and Sport 0.1
Kuok Foundation Berhad (Private corporation) 0.0
Others 2.0
Total 100.0
Slightly more than half (55 percent) of the surveyed IT graduates entered the HEIs with either a
Higher School Certificate (STPM) or a Matriculation Certificate (a pre-university certification) (Table 5).
Approximately one quarter (25.9 percent) had a diploma and almost one sixth (15.5 percent) of the IT
graduates already had a bachelors degree in a different field. Additional research is required to study why
students who already had a bachelors degree would later pursue a degree in IT.
Majority of the IT graduates were full time students. Despite the potential of IT to support distance and
off-campus learning, it is interesting to note that only a negligible number chose these modes of learning.
It is possible that students needed access to equipment (computers, software, etc.) that were available
only on campus, and the nature of the subject required significant hands-on support from trainers and
tutors. Further research will be useful to explore how technology can be used to increase the number
of students, particularly working adults, who may wish to continue their studies part time or by distance
mode.

Table 5: Entry qualification and mode of study
Variable Number Percentage
Entry qualification
Malaysian Certificate of Education (SPM) 37 1.0
Matriculation 963 27.0
Higher School Certificate (STPM) 998 28.0
IT Certificate (SIJIL) 72 2.0
Diploma 924 25.9
Bachelors Degree 551 15.5
Advanced Diploma 1 0.0
Pre University (ASASI) 19 0.5
Others 3 0.1
Total 3,568 100.0
Mode of study
Full time 3,426 96.0
Part time 125 3.5
Distance learning 4 0.1
Off-campus 13 0.4
Total 3,568 100.0
The Malaysian Universities English Test (MUET), an English proficiency test equivalent to TOEFL or IELTS,
is a requirement for all students entering Malaysian public universities. The study found that most IT
graduates were scored at Bands 3 and 4 (Table 6).
Table 6: MUET qualification

Score Number Percentage
Band 1 68 1.9
Band 2 666 18.7
Band 3 1,537 43.0
Band 4 1,024 28.7
Band 5 184 5.2
Band 6 11 0.3
Not applicable 78 2.2
Total 3,568 100.0
Almost one third of the graduates specialized in information systems and development and about
one fifth specialized in computer sciences and computer systems (Table 7). The remainder specialized
in networking; multimedia, management of information systems, industrial computing and artificial
intelligence.

Table 7: Area of specialization
Area of specialization Number Percentage
Information systems and development 386 29.7
Computer sciences and computer systems 240 18.4
Networking 207 15.9
Multimedia 206 15.9
Management of information systems 145 11.1
Industrial computing 72 5.5
Artificial intelligence 46 3.5
Total 1,302* 100.0
* Data not available from 2,266 respondents
Only seven out of 3,568 IT graduates were people with a disability (PWD), of whom six had some physical
disability and one with hearing problems (Tables 8). Further study is required to investigate whether
there are any particular institutional or discriminatory barriers to PWD studying IT.
Table 8: Graduates with disabilities

With disability Number Percentage
Yes 7 0.2
No 3561 99.8
Total 3,568 100.0
There are 13 public universities in Malaysia. About half (50.5 percent) of the surveyed IT graduates
graduated from three of these universities: Universiti Teknologi MARA (UiTM), Universiti Utara Malaysia
(UUM) and Universiti Teknologi Malaysia (UTM). UiTM has the largest percentage of graduates (21.2
percent) with branch campuses in all states of the country (Table 9).
Table 9: Public universities and number of IT graduates

Public universities Number Percentage
Universiti Malaya 188 5.3
Universiti Kebangsaan Malaysia 386 10.8
Universiti Putra Malaysia 319 8.9
Universiti Islam Antarabangsa Malaysia 60 1.7
Universiti Teknologi MARA (UiTM) 755 21.2
Universiti Sains Malaysia 142 4.0
Universiti Teknologi Malaysia (UTM) 505 14.2
Universiti Utara Malaysia (UUM) 539 15.1
Universiti Malaysia Sarawak 73 2.0
Universiti Malaysia Sabah 180 5.0
Universiti Teknologi Tun Hussein Onn 77 2.2
Universiti Malaysia Terengganu 82 2.3
Universiti Teknikal Malaysia Melaka 262 7.3
Total 3,568 100.0

Cross tabulation
Cross tabulation (chi square test) analysis was done between:
rIT graduates monthly income and their employment sector (Tables 10, 11 and 12)
rIT graduates monthly income and their employment status (Tables 13, 14 and 15)
rIT graduates cumulative grade point average (CGPA) and their employment status (Tables 16 and 17),
and
rIT graduates monthly income and their CGPA (Table 18).
IT graduates employment and their monthly income

Most of the IT graduates (79.6 percent) were working in the private sector, while 20.4 percent were working
with the government or with government-linked companies (Table 10). Among those who were in the
private sector, local private companies were the main employers, followed by MNCs. A small percentage
found employment in NGOs while 2.8 percent were self employed. Future studies can be conducted
to gauge the needs of these various sectors in terms of the graduates skills and how public universities
could produce IT graduates with the right skills and knowledge needed. With high unemployment rates,
IT graduates will benefit substantially if they also receive training in entrepreneurship to help them start
their own businesses.
Table 10: Employment sector

Employment sector Number Percentage
Government 275 12.6
Statutory bodies 85 3.9
Government-linked companies 84 3.9
Local private companies 1,046 48.2
Multinational/foreign private companies 562 25.9
Own companies (self-employed) 60 2.8
Non-government organizations 31 1.4
Others 29 1.3
Total 2,172* 100.0
* Note: Data not available from 1,396 respondents
The average IT graduates salary level was RM 1,500 per month. Clearly, self-employed graduates and
those working for NGOs earned less than their counterparts in the private sector (Tables 11 and 12). It is
not surprising that most graduates prefer to work for private companies or MNCs.

Table 11: Monthly income and percentage within employment sector (Malaysian ringgit)
Monthly Sector
income Govt. Statutory Govt- Local MNC/ Own NGOs Others
inclusive of bodies linked private foreign company Total
allowances company company private
(RM) company
<500 2.2 1.2 - 2.4 0.7 25.0 - 10.3 2.5
501-1,000 17.5 7.1 3.6 12.0 3.2 30.0 12.9 27.6 10.6
1,001-1,500 29.9 22.4 8.3 22.3 7.3 20.0 41.9 24.1 19.1
1,501-2,000 23.7 22.4 33.3 38.3 24.6 10.0 29.1 20.8 30.9
2,001-2,500 18.6 23.5 33.3 21.4 41.7 13.3 16.1 6.9 26.4
2,501-3,000 5.5 15.2 11.9 2.5 17.6 - - - 7.5
3,001-5,000 2.6 8.2 3.6 1.0 4.4 - - 6.9 2.5
>5,001 - - 6.0 0.1 0.5 1.7 - 3.4 0.5
Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
US$ 1 = RM 3.4
Table 12: Percentage within monthly income by employment sector

Monthly income Sector
inclusive of Govt. Statutory Govt- Local MNC/ Own NGOs Others
allowances (RM) body linked private foreign company Total
company company private
company
<500 11.1 1.9 - 46.3 7.4 27.8 - 5.6 100.0
501-1,000 20.9 2.6 1.3 54.3 7.8 7.8 1.7 3.5 100.0
1,001-1,500 19.9 4.6 1.7 56.2 9.9 2.9 3.1 1.7 100.0
1,501-2,000 9.7 2.8 4.2 59.6 20.6 0.9 1.3 0.9 100.0
2,001-2,500 8.9 3.5 4.9 39.2 40.9 1.4 0.9 0.3 100.0
2,501-3,000 9.2 8.0 6.1 16.0 60.7 - - - 100.0
3,001-5,000 13.0 13.0 5.6 18.5 46.3 - - 3.7 100.0
>5,001 - - 45.5 9.1 27.3 9.1 - 9.1 100.0
Total 12.6 3.9 3.9 48.2 25.9 2.8 1.4 1.3 100.0
US$ 1 = RM 3.4
IT graduates monthly income and their employment status

Table 13 shows that about 68 percent of the graduates earned at least the average monthly salary of RM
1,500. Most of the employed IT graduates were either permanent or contract staff (Table 14). Over 78
percent of graduates with permanent work status and 69 percent on contract earned at least the average
monthly salary compared to 33.3 percent who were self-employed, 28.4 percent of the temporary
workers and 25 percent who worked for their families (Table 15).

Table 13: Monthly income
Monthly income inclusive of allowances (RM) Number Percentage
<500 54 2.5
501-1,000 230 10.6
1,001-1,500 413 19.1
1,501-2,000 674 30.9
2,001-2,500 573 26.4
2,501-3,000 163 7.5
3,001-5,000 54 2.5
>5,001 11 0.5
Total 2,172* 100.0
US$ 1 = RM 3.4
Table 14: Job status

Job status Number Percentage
Permanent 1,115 51.3
Contract 726 33.4
Temporary 289 13.3
Self-employed 30 1.4
Working with families 12 0.6
Total 2,172* 100.0
Table 15: Employment status and income

Monthly income Employment status
inclusive of Permanent Contract Temporary Self- Working with Total
allowances (RM) employed families
<500 1.1 1.0 9.0 20.1 25.1 2.5
501-1,000 5.1 7.7 37.0 23.3 25.0 10.6
1,001-1,500 15.4 21.9 25.6 23.3 25.0 19.1
1,501-2,000 30.2 37.3 20.8 10.0 8.3 30.9
2,001-2,500 33.1 25.0 6.9 3.3 8.3 26.4
2,501-3,000 11.1 5.0 0.7 3.3 8.3 7.5
3,001-5,000 3.3 2.1 - 6.7 - 2.5
>5,001 0.7 - - 10.0 - 0.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
US$ 1 = RM 3.4
IT graduates grade point average, their employability and income

The cumulative grade point average of IT graduates tends to be positively correlated with their
employability and with their enrolment in further studies, as indicated in Tables 16 and 17. There is also a
positive correlation between IT graduates CPGA and their monthly income (Table 18).

Table 16: Cumulative grade point average and employment status
Number
CPGA Employed Further studies Upgrade skill Waiting for job Unemployed Total
placement
2.00-2.49 120 4 4 11 90 229
2.50-2.99 815 28 45 60 444 1,392
3.00-3.49 932 94 32 67 370 1,495
3.50-3.69 185 23 8 10 53 279
3.70-4.00 115 24 1 8 25 173
Total 2,167 173 90 156 982 3,568
Table 17: CGPA (percentage within CGPA) and employment status

Number
CPGA Employed Further studies Upgrade skill Waiting for job Unemployed Total
placement
2.00-2.49 52.5 1.7 1.7 4.8 39.3 100.0
2.50-2.99 58.6 2.0 3.2 4.3 31.9 100.0
3.00-3.49 62.4 6.3 2.1 4.5 24.7 100.0
3.50-3.69 66.3 8.2 2.9 3.6 19.0 100.0
3.70-4.00 66.4 13.9 0.6 4.6 14.5 100.0
Total 60.8 4.8 2.5 4.4 27.5 100.0
Table 18: Monthly income and CGPA

Monthly income Percentage within recorded CGPA
inclusive of 2.00-2.49 2.50-2.99 3.00-3.49 3.50-3.69 3.70-4.00 Total
allowances (RM)
<500 5.8 3.7 1.6 1.1 2.5
501-1,000 12.5 16.7 6.9 4.9 5.2 10.6
1,001-1,500 35.0 22.6 17.3 7.0 11.3 19.1
1,501-2,000 27.5 30.0 32.9 28.1 28.7 30.9
2,001-2,500 10.0 19.1 31.0 42.6 31.3 26.4
2,501-3,000 6.7 4.7 7.6 14.1 17.4 7.5
3,001-5,000 1.7 2.8 1.9 2.2 6.1 2.5
>5,001 0.8 0.4 0.8 0.5
Total 100.0 100.0 100.0 100.0 100.0 100.0
US$ 1 = RM 3.4
Factor analysis
Subjecting the variables to a vigorous analysis, the factors that have contributed the most, or the least, to
the graduates employability in terms of their innate skills, acquired skills and the ability and capability to
do the job, were identified.

Innate and acquired skills
The factors measured included:
rGeneral IT skills
rProficiency in Bahasa Malaysia
rProficiency in English
rCreative and critical thinking skills
rProblem solving and decision making skills
rAnalytical skills
rTeamwork/group work
rDevelopment of self-confidence
rEnhancement of self-maturity
rDevelopment of self-resilience
rBecoming knowledgeable
rEnhancement of interest in learning
rBecoming more sensitive towards current affairs
rIncreasing ability to be independent/self-reliance
rBeing ready to face the working world and challenges
rEffective communication
The results from the measure of sampling adequacy was 0.97 and Bartletts test of sphericity was 56,544.04
(p<0.01), which indicated that all items related to innate and acquired skills were appropriate.
The study found that maturity, resilience, self-confidence, problem solving and decision making skills,
become more knowledgeable, and the ability to be independent or self reliance were the prime innate
skills that contributed to the graduates employability. In contrast, six items teamwork, creative and
critical thinking, ready to face the working world and challenges, enhanced interest in learning, increased
sensitivity towards current affairs, and effective communication were found to be less important.
The acquired skills that contributed most to the employability of graduates were problem solving,
creative and critical thinking, and analytical skills. Whereas, these four items teamwork; proficiency in
English; proficiency in Bahasa Malaysia; and general IT skills had less influence on their employability.
Ability and capacity to perform the job

A factor analysis was also conducted on the items listed below to measure the graduates ability and
capability to perform their jobs.
rWorkplace adaptability
rProblem solving and decision making skills
rConfidence to perform the task required
rWorking in a team
rCommunication skills
rProficiency in Bahasa Malaysia (spoken)
rProficiency in Bahasa Malaysia (written)
rProficiency in English Language (spoken)
rProficiency in English Language (written)
rUsage of ICT
rAbility to use ICT applications

The resulting measure of sampling adequacy at 0.82 and Bartletts test of sphericity at 21,135.05 (p<0.01)
indicated that all the items measured were appropriate. Four factors adaptability; proficiency in Bahasa
Malaysia; proficiency in English Language; and technical skills were the main factors influencing the
graduates ability to perform their jobs. Three items workplace adaptability, working in a team and
communication skills were found to contribute the least.
Table 19 provides an overview of the various factors and the strength of their contribution to the
graduates employability based on these findings.
Table 19: Factors contributing to graduates employability

Innate skills Acquired skills Ability to perform a job
More influential Less influential More influential Less influential More influential Less influential
Maturity Teamwork Problem solving Teamwork Adaptability Workplace
adaptability,
Resilience Creative and Creative and Proficiency in Proficiency in Working in a
critical thinking critical thinking English language Bahasa Malaysia team
Self-confidence Ready to face the Analytical skills Proficiency in Proficiency in Communication
working world and Bahasa Malaysia English language skills
challenges
Problem solving Enhanced interest General it skills Technical skills
and decision in learning
making
Become more Increased
knowledgeable sensitivity towards
current affairs
Ability to be Effective
independent/ self communication
reliance
Further research will be needed to determine the reasons for these findings and suggest how universities
can enhance these skills in their IT graduates.
Qualitative analysis of focus group discussions with graduates

A total of 27 graduates participated in the focus group discussions (Table 20). The core questions posed
during the focus group discussions included:
a. Acquired skills
rWhat are the important skills acquired in university and how useful are those skills in the workplace?
b. Method to acquire skills
rHow do the graduates acquire those skills?
rWhat other ways can the skills be taught?
c. Relationship between CGPA and employability
rWhat are the graduates views on the relationship between CGPA and employability?

Table 20: Focus group participants
No. Gender Grad. year University Major
1 Male 2000 Local university MSc. IT
2 Female 1995 Local university Distributed Computing (PhD candidate)
3 Female 1995 Local university Systems (PhD candidate)
4 Female 2009 Local university Computer Science
5 Female 2008 Local university Mechanical-Automotive Engineering
6 Female 2007 Local university Parallel and Distributed Computing
7 Male 2003 Local university Software Engineering
8 Male 2008 Local university Information Systems
9 Male 2008 Local university Operations Management
10 Male 2007 Foreign university Information System
11 Male 2008 Foreign university Software Engineering
12 Male 2004 Foreign university Physics Science
13 Female 2006 Local university Information Systems
14 Female 2004 Local university Information Technology (Networking)
15 Female 2009 Local university Software Engineering
16 Female 2007 Local university Information System Engineering
17 Female 2008 Local university Computer Science
18 Female 2008 Local university Business Information Systems
21 Female 2005 Foreign university Electronic Engineering
22 Male 2008 Local university E-commerce
23 Male 2007 Local university Marketing
24 Male 2007 Local university Natural Language Processing
25 Male 2006 Local university Mathematics
26 Male 2008 Local university Software Engineering
27 Female 2008 Local university Information System
a. Acquired skills
The respondents talked about acquired skills in terms of five main sub-categories, as shown in Table 21.
They are ranked in order of importance with technical skills being the most important, followed by soft
skills, managerial skills, teamwork and adaptability.
Table 21: Categories of acquired skills

Acquired skills Broad definition
Technical skills Computer or IT knowledge and skills, specific programming languages and applications and
mathematical knowledge
Soft skills Interaction with others as well as delivering content and knowledge to others
Managerial skills Planning and coordinating people and tasks
Teamwork Working and collaborating with others
Adaptability Ability to adjust to new working environment as well as to different job requirements

i. Technical skills
This category includes the skills related to the core components of computer science and information
technology courses or academic content, computer and IT knowledge and skills, specific programming
languages and applications (e.g., C, Java, C#-C Sharp, Visual Basic, and web-based programming languages
such as PHP and ASP.NET), and mathematical knowledge. Below are some examples of the respondents
answers.
I have degree in IT, and for me the important skills are on the programming side. During my study, I was
taught a lot of programming, and what I have studied is mostly Java and PHP. After I completed my
practical training, I was asked if I have any skills in programming, I said yes. (Respondent FG3-T, female)
When we began studying, we didnt know anything about programming languages, so we started from
zero. But after half a semester, ohh! I knew the language very well. (Respondent FG1-H, male)
The respondents also mentioned learning computer programmes such as Microsoft Office during
their university studies, which rather a hands-on type of activity. In some cases, however, the students
complained that they had not learned basic computer programmes at the university, although the
ability to use these basic programmes was more useful to them in their employment than skills such as
programming.
The things that I used most in my employment were programmes such as Microsoft Word and Excel.
But these are the things that were not taught in university life. So I think in university, we should have
one subject on using office applications. (Respondent Group Interview-F, female)
In addition to learning how to use specific computer software programmes like Microsoft Office, another
respondent felt that basic but practical skills for setting up a computer or network should be part of the
technical skills taught at the university.
A few respondents also expressed the importance of mathematics in their workplace. They emphasized
that a strong foundation in mathematics is crucial for the nature of positions such as software engineer
or construction manager.
So for me, the mathematical knowledge is important because Im working as a Systems Engineer,
which involves a lot of calculations. (Respondent FG3-K, male)
I work in a construction site. So lets say one day I meet a client and they say they want to build a
house. I have to immediately calculate the requirements for them. If Im late and they are rushing to do
the project, they will take others. So mathematics skills are very important for me. (Respondent FG3-A,
male)
ii. Soft skills
Soft skills were the next most commonly cited set of skills that graduates acquired at university. In fact,
some focus group members believed that these skills were more important than technical skills.
Communication and presentation skills

Communication and presentation skills were perceived to be the two top desirable skills. Communication
skills involved any interaction with others, in both formal and informal settings. These skills also included
proficiency in the English language when dealing with clients, subordinates or employers.
Some respondents commented that having good social skills were important in the workplace and that
most of the time potential employers chose employees based on the soft skills demonstrated during job
interviews.
Social skills are very important. I work closely with my team, my seniors and my manager. They teach
me how to use my technical skills and apply that to company solutions.(Respondent FG1-T, male)
During the first seven years when I worked in Sapura IT, I was involved in about 45 projects. We had
to have skills in dealing with other people; we are dealing with our customers, the end-users, and with
our bosses, so we need communication skills. That is one of the important things, other than technical
background, that you need to have. (Respondent FG1-R, female)

Presentation skills were also critical skills students learned during their university years. They found that
these skills enabled them to have self confidence in performing their jobs. One respondent highlighted
that her employer, a multinational company, looked for candidates with presentation skills during the job
interviews after the students CGPA had been reviewed.
During the interview, it was clear that people who did not have the soft skills, did not have the
presentation skills, were not chosen. (Respondent FG2-A, female)
One respondent, a lecturer in a private college, mentioned how the soft skills are important in her
workplace:
The skills that I needed didn`t come from computer science; they came from presentation confidence,
public speaking, motivating the students, counselling. When I was there [at university] learning
presentation skills was very important. You have to be confident when you are teaching, to know your
stuff, but presenting is totally a different thing. (Respondent G1-V, female)
Managerial skills
Managerial skills, commonly mentioned by respondents during the focus group discussions, were related
to planning and coordinating people and tasks. These included skills such as leadership and organization.
Respondents noted that managing their assignments and projects at the university had helped them in
organizing and managing projects, people, tasks and time at their workplace. Likewise, graduates who
were leaders in extra-curricular activities or clubs found that the leadership skills they gained proved to
be useful in their jobs.
Management skills are also important because you have to manage yourself in order to submit your
assignment by the deadline. (Respondent Group Interview-F, female)
I think besides programming skills, what I learned in university is communicating and management
skills.(Respondent Group Interview-H, male)
Teamwork
Teamwork also emerged as an important skill learned at university, which helped the graduates in their
workplaces.
I joined the student representative council and we met student representatives from different courses
and departments. We all contributed ideas and skills for the activities we planned. I used my IT skills to
design the poster. Others did different things. Teamwork is like getting all the ideas and the material and
the brains that we have, and making a very good combination of them. (Respondent FG1-C, female)

b. Methods to acquire skills
Two sub-categories were identified for methods to acquire skills (Table 22). Respondents noted that
most of the time they obtained their technical and soft skills in the classroom through assignments,
projects and case studies, but they also gained skills through co-curricular activities such as societies,
clubs and sports.
Table 22: Methods to acquire skills

Methods Definition
Classroom Skills acquired within the computer science or IT faculty, most of the time through assignments,
projects and case studies
Co-curricular Skills acquired as part of university activities such as societies, clubs and sports
One participant pointed out that by taking courses outside his major field of study, he was able to share
his technical skills with others, while at the same time helped him to learn how to communicate better
with people outside the field.
I shared knowledge with students from the social science department. They don`t know about IT, they
don`t know about the use of programming, so I was able to tell them. So, it`s like an exposure, this is
where I learned my social skills. (Respondent FG1-T, male)
In addition, students listed other ways they could acquire technical skills in university, e.g., certification,
short courses on programming languages, laboratory sessions for learning programming, and
competitions, and concurred that the university should initiate more of these activities in the future.
University A has a very good culture. They encourage students to enter competitions. (Respondent
Group Interview-D, male)
Sometimes the hard disk is down. The blue screen comes up, and people ask you to solve it because
youre a computer science student, but you dont have the knowledge. What were doing in our university
studies is about problem solving on software matters, not hardware. But maybe we should have an
additional course about hardware. (Respondent Group Interview-D, male)
c. CGPA and employability

The CGPA was considered to be important for employability.
For the first job, yes, they are looking at the CGPA and they rely on your academic results. For the next
job, the second job, it is based on your working experience. But for the first job, they will ask about the
subjects you studied during your degree and how you understand the subjects. (Respondent FG2-A,
female)
I think to get to the interview itself, you need a good CGPA. After that, during the interview, it depends on
communication skills, how you present yourself, how you sell yourself. (Respondent Group interview-D,
male)
However, other participants had different opinions about the relationship between the CGPA and
employability.
CGPA help you to get a job, but Im not so concerned about my CGPA, as long as I can sustain a good
level, so I want to go out and mix around with other people. (Respondent FG1-T, male)
Some companies look at the CGPA. But others look at your communication skills. You should perform
well and impress the interviewer during the interview with your communication skills. (Respondent
FG3-F, female)

Qualitative analysis of interviews with employers
The survey team interviewed 19 respondents from the business sector (Table 23). The key questions
asked were:
rWhat are the important skills needed by the industry?
rWhat other skills are needed from the employees?
rWhat is your opinion on the relationship between CGPA and employability?
Table 23: Description of employers participating in the study

No. Sex Position Organization
1 Female Assistant Manager Government
2 Male IT officer Government
3 Male IT officer Statutory Body
4 Female IT officer Government
5 Male Mechanical Engineer Multinational company
6 Female IT Manager Multinational company
7 Male Mechanical Engineer Multinational company
8 Male RFID consultant Local Private
9 Female IT Manager Local Private
10 Male Web programmer Local Private
11 Male Specialise in virtual reality & open source Local Private
12 Male Software Engineer Local Private
13 Male Managing IMS (IP Multimedia Subsystem) lab in MIMOS Local Private
14 Male IT Manager Local Private
17 Male Computer Science Lecturer Statutory Body
Based on their responses, the skills needed by the industry can be classified as shown in Table 24.
Table 24: Skills needed

Types of skills needed Specific skills or knowledge needed
Knowledge Hardware, electrical skills, latest technology, business model, design
Hands-on capacity Practical training, projects, real-world problem-solving, case studies
Soft skills Ethics, stress management, listening skills, presentation, languages
Most employers agreed that the CGPA was important in terms of employability, but felt that it was used
mainly for filtering candidates at the interview stage. According to one respondent, a CGPA of 2.75 was
the minimum requirement for the IT industry. This indicates that a good CGPA is necessary but is not the
only criterion in getting a job.

Qualitative analysis of interviews with academics
Six heads of departments, deans or deputy deans from six leading universities in Malaysia and a visiting
professor from the United Kingdom were interviewed to seek the perspectives from the supply side.
From their responses, it was clear that their universities had provided opportunities for their students
to enhance their knowledge and experience. They had collaborated with outside vendors such as the
Multimedia Development Corporation (MDeC),23 Microsoft, Oracle and CISCO to offer extra short courses
and certification programmes. Infosys from India sponsored top students to enrol in their programmes
in both Malaysia and India. The Malaysian government had arranged for 3P workshops to be held in the
universities.24 In addition, it was quite common for the IT or Computer Science faculty to organize local
contests or send their students to participate in national and international competitions. The programmes
offered at each university and the associated skills taught are listed in Table 25.
Table 25: Special programmes and skills to assist graduates find employment
University Special programmes Skills taught
University A Within the curriculum Teamwork
rFinal year project competition rThrough special courses, i.e. group project, and
rThree compulsory English language courses in many instances final year project
including spoken English rEmbedded in many courses through group
rNational language course assignments including practical and lab
assignments, co-curricular courses
rOptional foreign language courses 10 major
languages with 4 courses each (free options) Communication skills and language skills
rThird language package (optional) 10 major rEnglish language embedded in class activities
languages with 3 courses each (offered as a and project work through presentations,
package) tutorials, seminars
rCompulsory course on professionalism and Entrepreneurship skills
technopreneurship that includes business plan
exercises Creativity and critical thinking, self confidence,
resiliency, maturity
r6-month full time industry training during the sixth
semester rThese skills are embedded in many elements of
assignments and project work in many courses
rIndustry seminars, career talks, on-campus
recruitment exercise/interview rProblem-solving based approach is part of many
courses
rOptional business plan and business idea
competitions at university and national level Technical skills
rOptional minor package in management
rOptional course on critical thinking
rOptional course on research methods in computer
science
Outside the curriculum
rYear I workshop
rProfessional certification programme after the
final semester (eighth) e.g. MCPD (Microsoft),
MCTS (Microsoft), CISCO, ACP.NET (Adobe, Flash &
Dreamweaver)
External (optional)
r3P programme
rCisco, Intel, MDeC, Microsoft, Oracle, and other
local IT companies, e.g. Train the Trainer workshops
in Creative Thinking and Innovation with Intel
rThinking Skills course
23 MDeC is a government agency responsible for ICT development in Malaysia.

24 3P is a certification programme run by a local company appointed by the Ministry of Higher Education.

University B Within the curriculum Teamwork
rThree two-credit courses to enhance Communication and language skills, creativity and
English language skills: English for Academic critical thinking, self confidence, resiliency, maturity,
Communications, Advanced English for Academic dependability, adaptability
Communications, and Elective English Language
rThese skills are embedded in the subjects
rOne three-credits IT Entrepreneurship course as
one of the core subjects that all computer science Entrepreneur skills
students must take after three semesters. Programming skills, analytical skills, logical skills
rAnnual career fair. Companies visit the university rThese skills are embedded in almost all
and conduct job interviews among students core subjects, through computer lab work,
rCompulsory three-day How To Get Yourself presentations, tutorials and problem-based
Employed programme. learning
rEmployment advertisements are published in the
facultys website
rCompany talk every semester by the IT companies
University C Within the curriculum Industry knowledge
rCareer talks and discussions Interview skills
External (optional) Technical skills
rMDeC courses
r3P programme
University D Within the curriculum Cognitive skills
rStudents are required to register for two credit Soft skills
co-curricular courses in which soft skills are
incorporated Technical skills
rCareer fair and career talks with IT industry
representatives
rAlumni mentorship programmes
rFinishing School programme
External (optional)
rMDeC courses
r3P programme
rInfosys Campus Connect programme
University E Within the curriculum Mathematics and computer science skills
rProject work Presentation skills
rCompetitions: First-year students entered
a competition to design technologies for
marginalized communities
rCommunity service activities.
rReal-life projects during holidays
rMentoring programmes
rBest Practices in Teaching and Learning seminars
rDistinguished speaker series
rIncentive programmes, e.g. marks for initiating a
best practice
rEnhanced faculty environment conducive to
creativity and collaborative work.
rAn area to showcase student works
rIntroduced student portfolios
External (optional)
r3P programme

University F Within the curriculum Teamwork
rCompulsory practicum training Creativity and critical thinking
rIt is a highly structured and planned practicum
Analytical, logical and programming skills
with guidelines that are to be followed by the
companies Technical skills
rSelf development group rMicrosoft Certified Technology Specialist: NET
rStudents are assigned to lecturers who become Framework 3.5 ASP.NET Application
their mentors and advised on their academic rMicrosoft Certified Technology Specialist: SQL
progress and monitor their levels of self- Server 2008 (Database Development)
confidence, English language skills, entrepreneur rAdobe Dreamweaver CS4
skills and adaptability
rAdobe Flash CS4
rFinal year project (undertaken in groups)
rCompTIA Security + Certification
rInnovation competition
rEC Council Project Management
Internal short courses rSun Certified Java Programmer
rConducted through lecturers and a centre called
CoPED that provides training for certification
External (optional)
r3P programme
rCourses provided by MDeC, Microsoft, Cisco,
Oracle, and other local IT companies
The visiting IT professor from the United Kingdom highlighted the three types of important skills required
for graduates in the UK: technical skills; problem solving and critical thinking skills; and communication
and teamwork skills. Noting that soft skills are often lacking in UK students, she recommended problem-
based learning (PBL) as a teaching tool to assist the students in gaining hands-on and critical thinking
skills in order for them to perform well in the workplace.
Discussions
An overview of the results from the quantitative and qualitative data is shown in Table 26. There was
strong correlation between some of quantitative and qualitative responses, but also significant
divergence among others, underlining the differences in the expectations among employers, academics
and graduates regarding the level of skills that graduates should have when they enter the workforce.
Table 26: Summary of data analysis

Variables Quantitative Qualitative
Innate skills
(a) Adequate
enhance self-maturity Rank 1 NA
develop self-resilience Rank 2 NA
develop self-confidence Rank 3 important
problem solving and decision making Rank 4 important
become knowledgeable Rank 5 important
ability to be independent/self reliance Rank 6 NA
(b) Lacking
team work/group working Rank 7 important
creative and critical thinking Rank 8 NA
ready to face the working world and challenges Rank 9 NA
enhanced interest in learning Rank 10 NA
more sensitive towards current affairs Rank 11 NA
effective communication Rank 12 important

Variables Quantitative Qualitative
Acquired skill
(a) Adequate
problem solving skills Rank 1 important
creative and critical thinking Rank 2 NA
analytical skill Rank 3 important
(b) Lacking
team work/group work Rank 4 important
proficiency in English Rank 5 important
proficiency in Bahasa Malaysia Rank 6 NA
general IT skills Rank 7 important
Capacity to do the job
(a) Adequate
confidence to perform the task required Rank 1 important
problem solving and decision making skills Rank 2 important
workplace adaptability Rank 3 important
(b) Lacking
working in a team Rank 4 important
communication skills Rank 5 important
*NA = data not available
From the focus group discussions, the graduates had identified two important sets of skills they had
acquired at their university: teamwork and communication skills (which include both Bahasa Malaysia and
English language proficiency). This is not surprising since the graduates had emphasized the importance
of communicating with their professors and peers, and in giving presentations. In their opinions, these
skills had helped them performed well in the workplace. Unfortunately, this conclusion did not coincide
with the feedback from the employers.
Furthermore, the graduates in the focus groups had not mentioned creativity and critical thinking. It
could be because they thought that these attributes were unimportant or that they did not acquire
these attributes while in university. Regretfully, there is not enough information to verify the reason for
this omission.
In contrast, the employers found the graduates creative and critical thinking skills to be wanting, and
recommended the universities to do more to instil these skills in their graduates. The employers also did
not think that the universities were equipping their undergraduates with sufficient technical knowledge
and skills.
The academics believed they were providing graduates with adequate skills, with many of the academics
reporting that they had tried to encourage such skills through their curricula. This indicates either that
industry is expecting too much, students are not trying hard enough to gain these skills, or universities
are not delivering the right thing.
Speaking on behalf of their universities, the academics maintained that they had prepared their students
adequately, both in terms of general and specific technical skills and knowledge, to enter the workforce.
This was disputed to some extent by the graduates who felt that they lacked some crucial skills, a
sentiment supported by the employers.
Reiterating that the students were given opportunities to attend special programmes and courses, and
receive certification from other vendors, the academics contended that the expectations from the IT
industry were too high. Universities cannot provide all the skills demanded by the labour market within
a three to four year undergraduate programme. It is also very challenging for universities to keep pace
with the rapid changes in technology without sufficient funding for research and time to modify their
curriculum and course content. It is no wonder that most universities are a few steps behind the industry,
and cannot teach the latest IT programmes or applications. It would be more effective for the industry
to play an active role in building the skills they require by providing internship programmes for students
and on-the-job training for their newly recruited employees.

Recommendations and conclusions
There is a distinct gap between the expectations of the employers and academics. While both would like
the graduates to be creative, think critically and have solid technical know-how, they disagreed about
the universitys contribution in producing such graduates. The academics considered their graduates to
be sufficiently trained; the employers did not. To address this gap, it is expedient for the universities and
employers to re-examine and re-adjust their expectations accordingly.
Another recommendation is for universities to review their IT curriculum annually to keep up with the fast
changing nature of the field. At the same time, they need to balance the demand to turn out productive
workers against the fundamental goal of educating students to be moral, ethical and responsible citizens.
Universities should re-examine their activities designed to improve creativity and critical thinking to
ensure that the students are in fact gaining these skills, and to incorporate problem-based learning as
much as possible to encourage greater creativity and critical thinking.
It cannot be assumed that all employers have the same demands and expectations. Employers themselves
are often under great pressure to innovate and adapt within a short period of time. Therefore it would be
unrealistic to expect the universities to churn out graduates who can meet each and every need in the
workplace considering the time consuming process for the academics to update their own knowledge
and then to revise the curriculum and courses. Rather, the universities can focus on inculcating more
general skills and aptitudes in their students, while the industry hones the specific knowledge and skills
required through on-the-job training.
Meanwhile, the students should not depend entirely on the university and the formal education system
for their personal development. They have to be more proactive and take the initiative to acquire essential
skills. Involvement in extracurricular activities is an excellent outlet for building self confidence and soft
skills. Starting a business, instead of waiting for job offers to materialized, is increasing seen to be an
attractive option, supported by many examples of successful and enterprising young entrepreneurs in
the IT industry.
Playing its role, the Ministry of Higher Education has formulated a National Higher Education Strategic
Plan to address issues of employability. To implement the action plan, it would appropriate for the
government to establish a regulatory body for Computer Science and Information Technology Education
to support professionals in this field. The regulatory body would be similar to existing professional bodies
such as the Malaysian Medical Association, Malaysia Institute of Accountancy and Institute of Engineers
Malaysia, which ensure high professional standards in among their members.
Last but not least, major IT players in Malaysia have initiated efforts to create a platform to look into
issues of the quality of IT graduates and professional recognition of IT graduates. This initiative is still in
its infancy, but efforts have been made to incorporate this into the 10th Malaysian Plan commencing in
2011.25
It is clear from the above discussion that the major stakeholders (graduates, academics/university,
employers and the government) must work together to improve graduate employability. Universities
cannot guarantee employment for their graduates without collaboration with the employers in the IT
sector. Certainly, the students themselves have to make the effort to learn and acquire the knowledge
and skills within an enabling environment. Government input is required to ensure the policy structure
and economic conditions are favourable for employment opportunities in the IT industry. The linkages
among the stakeholders are illustrated in Figure 1.
25 Minutes of the first meeting on Directions of IT with Malaysian National Computer Confederation, 20 August 2009, Kuala
Lumpur.

Figure 1: Stakeholders in improving graduate employability
University
Employer Government
Community
Student
There have been positive developments since the launch of this study in 2009. Several parties MDeC,26
ICT Deans Council and the Human Resource ICT Task Force27 have initiated activities to enhance graduate
employability, particularly in terms of employment for IT graduates and the need for a regulatory body
for IT professionals. The ICT Deans Council has recommended changing the 3-year computer science
or IT university degree to a 3- or 4-year programme. The revised curriculum will be aligned to the
Association for Computer Machinery guidelines, with a compulsory 6-month on-the-job training. Public
universities have begun implementing this in stages.
IT companies have also taken action to improve the situation. For example, Intel will roll out TRIZ, a
methodology that relies on the study of patterns of problems and solutions, to all universities and, in the
long run, to all primary and secondary schools.
In 2010, the MoHE announced the formation of 19 Industry Clusters for various domains including IT.
The clusters will foster a more structured collaboration between universities and industries, and thereby
help to raise the level of university education in Malaysia. One of the goals of the clusters is to improve
graduate employability. The IT Cluster is co-chaired by the Chairperson of the ICT Deans Council and
MDeC, with MOHE playing a steering role. Members of the IT Cluster are representatives of the ICT Deans
Council and industry.
The MoHE also introduced the National Professors Council as a forum to congregate Malaysian academics.
The Council has several sub-categories, each to be headed by a professor. One of the areas is IT, also
named as the IT Cluster. It is likely that this group will also examine the issue of IT graduate employability.
In conclusion, these initiatives serve to underscore the importance the various stakeholders have given
to graduate employability in Malaysia.
26 MDeC, an entity under the Ministry of Science, Technology and Innovation, has been continuously concerned about IT
graduate employability issues and has been actively providing quick solutions to address the concern.
27 Human Resource ICT Task Force, initiated by Malaysian pioneers in computer science, comprises representatives from
industry and academia.

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Appendix 1: Enhancing graduate
employability at the International Islamic
University Malaysia
Shukran Abdul Rahman, International Islamic University Malaysia
The International Islamic University Malaysia (IIUM) was established with the aim of producing fully
functioning persons who will serve as agents of change in their respective communities. The academic
programmes and student activities offered at IIUM are designed to support the universitys educational
philosophy which aims to equip students with the knowledge, skills, abilities and attributes that are
relevant to both the needs of the society and world of work.
The universitys Strategic Planning Report 2001-2010 outlines IIUMs aim to be the leading model of an
International Islamic University, based on the principles of integration of knowledge and comprehensive
excellence for the progress of Malaysia and humanity, while ensuring that its graduates can compete in
todays job market.
This paper reports the initiatives taken by the university in developing students employability. Such
initiatives include co-curricular and career development programmes. This paper also reports on the
research conducted by the university in studying students employability.
Employability programmes at IIUM

Various efforts have been implemented though co-curricular activities managed by the Student
Development Division and the Alumni and Career Services Division. The details of the two establishments
and their activities are described below.
Student Development Division

The mission of the Student Development Division is to offer programmes that equip students with
the necessary knowledge, skills, abilities, and other desirable characteristics to enable them to face the
challenges in the workplace. The capacities and aptitudes of the students are enhanced through the
co-curricular programmes which complement the competencies taught in classrooms. There are two
types of programmes: credited and non-credited activities, managed by the Co-Curricular Activity Centre
(CCAC) and the Non-Credit Co-Curricular Activity Centre (NCCAC) respectively.
The main roles of the CCAC are to cultivate specific identifiable skills that suit the needs of the students,
offer courses that are beneficial for the development of students personality, grant credit hours for the
students co-curricular activities, provide a platform (training ground) for the students to continuously
develop their leadership skills and talents, and equip students with the basic skills that are required for
every individual. Attainment of learning outcomes is assessed and students are granted academic points.
The university has made it compulsory for all students to enrol in co-curricular activities. Unlike the three
credit-hour points for one academic course, each co-curricular programme carries 0.5 points.
The NCCAC was established to provide platforms for students of diverse interests to channel their talents,
creativity and skills in various extra-curricular activities through clubs and societies. The functions of the
centre are to supervise, monitor and facilitate student clubs and societies, provide guidelines for students
in organizing programmes, monitor budget allocations for student activities, coordinate students extra-
curricular activities, and organize training for students. Students participation in NCCAC activities is
voluntary and they do not gain any academic credits. However, depending on their level of participation,
the activities of students are recorded in the Co-curricular Transcript. The NCCAC has four main units:
the cultural and arts unit, uniform and interest-based unit, community and services unit, and training
and records unit. Two types of programmes are offered, namely student-driven and department-driven

activities. The former entails the implementation of activities planned, proposed and run by students. The
students may organize programmes with or without funding from the university. The programmes are
monitored and supervised by the related Unit, however. The department-driven programmes include
those which are proposed and organized by the unit. They are fully sponsored by the university or are
sponsored by an external organization. They are fully supervised by the unit but assisted by students.
Alumni and career services division

The Alumni and Career Services (ACS) Division was established with the aim of coordinating and
organizing programmes related to promoting graduates employability, and increasing the graduate
employment rate. The ACS aims to help IIUM students in exploring career options, equip them with
job-seeking skills, and subsequently assist them to find suitable employment. The ACS organizes career
development programmes, also known as the Finishing School Programme (FSP). The activities help
students to identify their area of career interest, plan their career path, and develop skills to make them
more employable and prepared to enter the world of work.
In particular, the FSP aims to (a) create career awareness among the IIUM students, (b) equip students
with job-seeking skills, such as the preparation of resumes and application letters, (c) equip students with
skills to perform effectively in interviews, (d) expose students to work-related experience by facilitating
and organizing structured career development activities, (e) assist students in matching their interests,
abilities and values with a career, (f ) provide guidance to students in managing their career-seeking
activities, (g) expose students to activities which develop relevant work-related experience and offer
opportunities to enhance students employability skills.
The services offered by the ACS Division include:
a. Psychometric test: This test is used to help students develop their self-knowledge, including their
interests, abilities, and personal and academic strengths.
b. Career clinic: A one-day session aimed to equip the students with skills such as how to prepare a
resume, respond to interview questions, and make a good impression, so that they meet the needs
of the current job market.
c. Career seminar or career talk: This seminar gives students an opportunity to obtain information about
the required work-related personality attributes, which include ability, potential, self-evaluation and
determination. The seminar presents the viewpoints of speakers who talk about their job experience.
d. Career recruiter programme: The programme provides an avenue for IIUM students to hear from
representatives of various companies who speak about their organizations. Students can learn about
their activities, the career opportunities offered by them, and their expectations of workers.
e. Career expos camp: A three-day, two-night work simulation programme where students are exposed
to a simulated work environment in which they must complete a task assigned to them individually
as well as in a group. A panel made up of industry experts from the IIUM alumni evaluates their work.
f. Career consultation: A weekly programme offered to students, it consists of consultation on resume
writing, grooming tips and interview skills, career related video sessions and test sessions.
g. Career expos excursion: In collaboration with other university agencies, the division arranges
excursions to employing organizations to increase students awareness about employers expectations,
and familiarize students with workplace surroundings.
h. Work experience programme: This enables students to participate in a practical training/internship
programme to explore their interests, motivations and abilities. The ACS Division and the relevant
Kulliyyah (or faculties) also assist students in securing a placement in the company or organization.
This is also facilitated by the Industrial Networking and Practical Training Section of the ACS Division.

Research on IIUM graduate employability
Since 2000, studies have been conducted to assess the employability of IIUM graduates and their pattern
of employment after graduation. The tracer study is conducted every year and enables the university
to find out whether graduates are employed, and whether the university has equipped its students
with the necessary skills, knowledge and abilities to meet the requirements of the job market. The study
particularly examines the impact of the universitys effort in improving the employability of students
through co-curricular activities and career development programmes.
Perceived importance of co-curricular activities

The findings of the tracer studies indicate that students who participate in co-curricular activities
perceive that they have a higher chance of being employed after graduation (Shukran et al., 2006). In
2005, for example, out of 2,020 students surveyed, 78 percent participated in co-curricular activities
while 22 percent did not. The respondents who participated in co-curricular activities perceived that
their involvement in these activities had produced beneficial outcomes as follows: (a) the opportunity to
work in various work sectors; (b) the opportunity to play an effective role in community development;
(c) enhanced leadership skills; (d) improved time management skills; (e) knowledge and skills relevant to
their present job; (f ) improved communication skills; (h) increased teamwork spirit; and (i) better human
relations skills.
Employment rate
IIUM aims to achieve an 80 percent employment rate among new graduates (IIUM, 2007). According to
the findings from the trace studies, six months after graduation only 6 percent of surveyed graduates
were unemployed, while 8.6 percent were pursuing further studies, 9.8 percent occupied in other
engagements and the remainder had found employment, The findings also indicated that about 58
percent of the employed graduates work on a temporary or contract basis, while 41 percent work had
permanent posts.
Predictors of graduates employment

The strongest predictor of graduate employability was graduates English language proficiency ( = 0.42,
t = 5.52, p < .001). Graduates involvement in training programmes was also predictive of employment (
= 0.19, t = 2.88, p < .001). Furthermore, the more involved graduates had been in training programmes
offered by the university, the more likely they were to be employed permanently after graduation. As
expected, the grade point average was also a significant predictor of graduate employability ( = 0.09,
t = 4.80, p < .001). The higher the cumulative grade point average at the point of graduation, the more
likely graduates were to be employed permanently after graduation. As for the co-curricular activities,
graduates indicated that their involvement in co-curricular activities produced beneficial outcomes in
terms of employability.
Improved strategies to encourage students involvement

in co-curricular activities
In the 2003 tracer study, when asked for suggestions on how to meet employers requirements, the
graduates highlighted training programmes such as internships and talks by professionals from various
employing organizations about job requirements and corporate expectations. Shukran and Wok (2003)
found that many graduates lacked information about their own abilities and interests. Respondents
suggested that establishing a credential file system would help students to identify a career that suits
their abilities and interests. The credential file system can be used to generate individual student reports
on their participation in the career development programmes.

Satisfaction with institutional programmes
In terms of academic programmes, the graduates surveyed were not satisfied with the practical training
(mean of 2.8 in 2005 and 3.0 for 2003 and 2004) and the work experience (mean of 2.6 in 2005 and 2.9 in
2003 and 2004) provided by the institution. In 2003 and 2004, graduates were also dissatisfied with the
counselling and career services to assist them in obtaining a job. However, in 2005 the satisfaction rate
improved.
Surveyed graduates were satisfied to very satisfied with the attributes of the teaching staff, and were
most satisfied with the qualifications of the teaching staff.
With regard to the university services, the library received the highest rating (very satisfactory) for the
three years between 2003 and 2005. In 2003, students were satisfied with the services provided by the
Alumni Relations Unit, Counselling and Career Services, Student Affairs and Development Unit, and
Admission and Records Division. However, these services were not rated highly in 2004. In 2005, only the
Student Affairs and Development Unit and the Admission and Records Division remained unsatisfactory.
Therefore, most of the divisions were considered satisfactory in providing relevant facilities and services.
Graduate employability profile

IIUM also conducted a cohort longitudinal study to profile the pattern of employability among the first
degree graduates who graduated between 2003 and 2005 (Saodah et al., 2007). Through this study the
characteristics of those who were easily employed upon graduation were identified. The study found
that these graduates exhibited very good workplace adaptability, possessed good problem solving skills,
were confident, worked well as a team, spoke and wrote proficiently in English and Bahasa Melayu, were
versatile in ICT applications, and were able to acquire knowledge relevant to their jobs.
References
IIUM. 2007. IIUM balanced scorecard 2007-2015. Kuala Lumpur, International Islamic University Malaysia.
Saodah, W., Shukran, A.R, Hariyati, S.A.M, Noor Azlan, M.N., Ainol, M.Z. and Danial, M.Y. 2007. Profiling
the first-degree graduates employability: a longitudinal analysis. In Munir, S., Sarjit, K., Rozinah, J. (eds.),
Governance and leadership in higher education. Pulau Pinang, Penerbit USM.
Shukran, A.R and Wok, S. 2003. Rejuvenating career service to yield sustainable development: a solution
to unemployment phenomenon in Malaysia. Paper presented at Middle East and North Africa Regional
Psychology Conference, Dubai 12-16 December 2003.
Shukran, A.R., Saodah, W., Hariyati, S.A. M, Noor Azlan, M.N, Danial, M.Y. and Ainol, M.Z. 2006. Alumni tracer
study. Kuala Lumpur, Alumni and Career Services Division, IIUM.

UNESCO Bangkok
Asia and Pacific Regional Bureau for Education
Mom Luang Pin Malakul Centenary Building

United Nations 920 Sukhumvit Road, Prakanong, Klongtoey
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Cultural Organization Bangkok 10110, Thailand
E-mail: apeid.bgk@unesco.org
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Tel: +66-2-3910577 Fax: +66-2-3910866

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GRADUATE EMPLOYABILITY IN ASIA

GRADUATE EMPLOYABILITY IN ASIA i

ISBN: 978-92-9223-395-2(Electronic Version)

Design/Layout: Sirisak Chaiyasook

ii GRADUATE EMPLOYABILITY IN ASIA

GRADUATE EMPLOYABILITY IN ASIA iii

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GRADUATE EMPLOYABILITY IN ASIA v

GRADUATE EMPLOYABILITY IN ASIA 1

Graduate unemployment rates and job preferences

2 GRADUATE EMPLOYABILITY IN ASIA

Bridging the gaps

GRADUATE EMPLOYABILITY IN ASIA 3

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GRADUATE EMPLOYABILITY IN ASIA 5

Table 2: Graduates and status of employment in 2009 (000 and %)

6 GRADUATE EMPLOYABILITY IN ASIA

Source: National Statistic Bureau, February 2008

GRADUATE EMPLOYABILITY IN ASIA 7

Results of the study

Table 3: Development of labour force composition by sector (%)

Profile of the working age in Indonesia

8 GRADUATE EMPLOYABILITY IN ASIA

Source: Ministry of Manpower and Transmigration

Figure 3: Profile of higher education graduate labour force, 2008

Source: Ministry of Manpower and Transmigration

Figure 4: Profile of higher education graduates open unemployment, 20086

Source: Ministry of Manpower and Transmigration

GRADUATE EMPLOYABILITY IN ASIA 9

Table 4: Job vacancies in 2008

Profile of the survey respondents

Figure 5: Profile of respondents by sex

Source: Survey data

10 GRADUATE EMPLOYABILITY IN ASIA

Source: Survey data

Figure 7: Profile of respondents by level of education

Source: Study survey data7

Profile of employed graduates

GRADUATE EMPLOYABILITY IN ASIA 11

23% Foreign university (1%)

Source: Survey data

Figure 9: Lead time to first employment

Source: Survey data

12 GRADUATE EMPLOYABILITY IN ASIA

Source: Survey data

Figure 11: Length of work at current company

Source: Survey data

Figure 12: Match of educational background and current employment

Source: Survey data

Source: Survey data

Figure 14: Change of employment

More than 3 times (6%)

Source: Survey data

Figure 15: Length of work and job satisfaction

Source: Survey data

14 GRADUATE EMPLOYABILITY IN ASIA

Source: Survey data