Mohd Firdaus Zaini; Maslina Mohd Basir; Munirah Balkis Mohd Bakri; Mohammad Zulfikri bin Omar
Box Article 2: Assessment On The Demand Of Malaysia Labour Market Using Online Job Vacancy Data
The labour market in an economy exists whenever there is a demand for labour as a factor of
production, and the worker willingly supplies the labour to earn salaries and wages in return.
By understanding the labour market demands and trends; the type of jobs, skills, and education
required by the firms can be identified and matched. Otherwise, the unmet demand due to the
lack of skills and knowledge for the particular occupation needs to be managed by revising the
current education syllabus and training curriculum, reskilling and upskilling the labour forces,
optimising the latent workforce, importing foreign labours, etc.
Changes in the demand for occupation and job mismatch came to the forefront when rapid
industrialisation and globalisation hit Malaysia in the early 1980s. The issues had been
extended until today and exacerbated by technology disruption and the COVID-19 pandemic.
This imbalance in occupation structure may lead to the labour market tightens and thus require
One of the indicators usually used to measure the changes in labour demand over time is Job
Vacancy. Despite no international recommendations or guidelines relating to job vacancies
statistics, it has been suggested that it is fairly simple to develop a definition of a 'vacant post'
that parallels the definition of an 'unemployed person (Australian Bureau of Statistics, 2019).
The concept and definition of the job vacancy is the unfilled job that is ready to be filled; of
which, the employer is actively seeking candidates, including advertising vacancies, issuing
notices and registering with employment agencies as well as conducting interviews to select
candidates to fill in the vacancies (DOSM, 2021). Commonly, vacancies in organisations occur
due to company expansion or replacement for promotion, termination, resignation, demotion,
and retirement (Maslina et al., 2020). It could also be due to changes in the organisation
structure, formation of a new entity, or changes in the business processes.