Graduates Avoid Skilled Jobs Due to Low Pay Despite Demand
In Germany, a Federal Statistical Office report has indicated that skilled workers in "bottleneck occupations," where there is a significant shortage, are earning below-average salaries. Full-time workers with recognized vocational training in these areas make an average of 3,714 euros gross, with agriculture workers earning even less, at an average gross salary of 2,609 euros. Those with a doctorate or habilitation, however, earn significantly more, averaging 8,974 euros.
Similarly, in Malaysia, the Ministry of Investment, Trade, and Industry (Miti) has identified low salaries as a key factor behind the shortage of local skilled workers. Deputy Minister Liew Chin Tong referenced data showing 49,500 unfilled high-skilled manufacturing sector positions and 22,248 vacancies across professional, scientific, and technical sectors in Q2 2023. A study by the Khazanah Research Institute revealed that 65.6% of graduates in 2021 received starting salaries of less than RM2,000, pushing many to seek employment abroad or in the gig economy for better remuneration. Miti and other ministries are implementing comprehensive measures to align unemployed graduates with industry needs and are urging industries to offer competitive salaries to attract local talent.
