Malaysia’s resilient labour market masks career mobility gap despite low unemployment

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Malaysia’s labour market has remained resilient, with the overall unemployment rate falling to 2.9 percent in the first quarter of 2026, but a significant number of tertiary-educated workers remain employed in jobs below their qualification level.

According to a statement issued by The University of Manchester South East Asia Centre, 1.93 million tertiary-educated workers, or 35.2 percent, were employed in semi-skilled or low-skilled occupations during the period.

The figures point to a gap between employment and career progression, particularly in terms of whether workers’ qualifications and experience are helping them move into more skilled, complex and higher-value roles.

“We need to shift the conversation from employability to career mobility. Being employed is not the same as progressing,” said Lim Bee Ing, Centre Director of The University of Manchester South East Asia Centre.

She said experienced professionals increasingly need the ability to lead across functions, make strategic decisions and navigate change, adding that purposeful postgraduate education can help develop those capabilities.

Evidence from Manchester’s MBA programmes also indicates increasing cross-field career mobility. Its latest MBA employment report found that 59 percent of the 2024 class changed sectors, while 27 percent changed country, industry and job function.

Source: Media OutReach News