• Malaysian Bureau of Labour Statistics
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Research and Development

Muhammad Shafiq Harun; Noraliza Mohamad Ali; Nur Layali Mohd Ali Khan

The Determinants of Malaysian’s Youth not in Employment, Education or Training

Abstract

Youth who are not in employment, education or training make up what is known as the NEET population. Widespread dissemination of NEET represents an alarming social issue regarding young people to long-term unemployment and social exclusion. Those population, in general, live in high risk and vulnerable condition, and many of them face social inequality. Consequently, this situation has a significant negative impact on the economic growth and prosperity equilibrium of Malaysia. The NEET indicator provides a measure of potential youth labour market participants since it also covers youth outside labour force not in education or training. This indicator is also a better measure of the current situation on potential youth labour market participants compared to the unemployment rate.

This paper intends to investigate the determinants of the NEET situation in Malaysia starting with the identification of their main characteristics and then describing the prevalence of NEET with a focus on specific homogeneous clusters. The analysis on NEET in Malaysia utilized labour force surveys which are household surveys. The plenty of information collected in this survey enables us to investigate the determinants affecting Malaysian youth to be NEET those linked to socioeconomic. The results reveal that high relative NEET rate for young women are due to their involvement in household chores and also the existence of strong institutional barriers that limit women's participation in the labour market.

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