Running head: UNEMPLOYMENT AND ITS IMPACT ON mALAYSIA SOCIETY 1

Unemployment and its impact on Malaysian society

Group 3

Foundation in Management, UNITAR

Economics and Society

Mohd Fahmi Abdul Hamid

Week 6
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Abstract

Unemployment also called poverty refers to a situation in which a person who is actively looking

for work is unable to find work. It also is regarded as a key indicator of the economy's health

because it represents employees' capability (or inability) to easily acquire permanent work and

contribute to the economy's productive output. People who quit employment for other reasons,

such as retirement, further education, or disability, are not included. Poverty reflects economic

hardship, because although extremely low unemployment rates may clearly show an unstable

economy. Unemployment can be frictional, repetitive, structural, or institutional. Therefore,

government agencies collect and publish unemployment data in a variety of ways. For several

reasons, unemployment is an important macroeconomic statistic. The level of unemployment

reflects how well our economy is doing, which is significant. Unemployment shows that we are

not exploiting our labor efficiently, and hence are not generating the optimum amount of goods

and services. Unemployment has a personal cost as well because hours spent not preparing for a

test are virtually lost forever. Regardless of how good things are going for the ordinary person,

those who are unemployed will be in a worse condition.

Keywords: unemployment, unable, work, poverty, structural, important

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Factor of unemployment in Malaysia

The first factor is society's attitude about work. The attitude of a person who chooses the most

appropriate employment even if it does not connect to a degree and is not in their topic of study

while attending university. They are more eager to be unemployed than to work as clerks or in

other occupations perceived to be less equal, even though working is preferable to being

unemployed.

Aside from that, there are many Indonesian and Thai immigrants in this country. Employers are

more interested in employing foreign energy than locals because immigrant salaries are lower

than those of locals, and as a result, they are more likely to find work in this country, particularly

in the construction industry.

On the other side, individuals in this country are unskilled. There are still numerous work

chances available in our country, but they do not know how to take advantage of them due to a

lack of skills. It is not hard for them to be easily engrossed in a job if they are not embarrassed to

ask because they can ask their family members or relatives pals. They were also terrified to try.

Unemployment among university students will continue if they do not make attempts to discover

new employment opportunities. They can engage in economic activities such as entrepreneurship

to assist them to make a living.

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Effect unemployment of society in Malaysia

Malaysia's unemployment will influence the economy and society. It will harm society by

lowering national output. When there are many unemployed workers, production in some sectors

of the economy falls, and as a result, the country's national output falls. Unemployment does not

help the economy grow. Economic growth will be slowed by high unemployment. Production

resources that are squandered result in less output than intended.

Following that, it will be reducing the standard of living; the standard of living of a

country's population is measured using per capita income. When there is much jobless labor

force, the gross national product falls, as does income per capita. When per capita income is low,

the population's standard of living is similarly low. Furthermore, when the unemployment rate is

high, the income or profits of entrepreneurs fall. This reduces the amount of income tax and

profit tax that the corporation may collect from the government, lowering national income.

On the social side, it will cause discord in the family. When unemployment rises, the

household environment becomes unstable, as there will be fights and quarrels, which will

eventually lead to divorce. There will also be a rise in anti-social incidents in society. Because of

the financial difficulties caused by unemployment, they are willing to conduct robberies,

murders, and other anti-social activities to make money. Aside from that, there are issues with

stress and a lack of self-confidence. Unemployed persons who have been unemployed for a long

period will have a high level of stress in their lives. It will always consider how he would meet

his commitments to his family if he were unemployed. All the unpleasant and dangerous effects

of unemployment must be avoided if we are to prevent the problem from worsening.

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Conclusion

Unemployment is a severe concern in a culture where most people can make a living by

working with others. Unemployment in a country has an impact on both the economy and

society. The economic benefit includes increased national productivity, higher living

standards, and foster national development. Low unemployment can help a country's poverty

rate.

Unemployment has a bad impact on the family, causing instability that might lead to

disputes and divorce. The first stage is for the government to provide financial aid to stimulate

the economy's rapid growth. The government should manage this funding package properly by

selecting economic projects that can simply add secondary economic activity such as the

technology-based economy and high research. If the government gives adequate financial

support packages to create jobs, the country's economy will grow rapidly.

The private sector, particularly businesses, has a role to play as well, in that they must be

willing to make sacrifices while the country is in the grip of an economic crisis. Their sacrifices

can be represented in the form of decreased pay or rewards for them in the form of bonuses, and

so on so that the money can be utilized to keep the company alive rather than lay off

employees, which will increase the level of unemployment. The lifestyles of individuals who

have lived in luxury for a long time must be sacrificed for the sake of the country's future

prosperity since if they continue to profit from exorbitant wages and bonuses, their enterprises

would lack financial means to survive this recession. Individuals, on the other hand, should be

more optimistic about weathering the economic crisis by attempting to enhance their

abilities, such as continuing to study, completing short-term courses, and increasing their

performance.
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In conclusion, based on the experience of our neighboring nations, particularly

Indonesia, the problem of unemployment might indeed produce instability if the country fails to

regulate it effectively. The government and the private sector must recognize the necessity of

working together to quickly rebuild the country's economy. Without cooperation, economic

challenges would continue, making it difficult for anyone, particularly young people who have

recently dropped out of school, to find outstanding career prospects.

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References