FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF SCIENCE (HONS.) MANAGEMENT MATHEMATICS

AND BACHELOR OF BUSINESS ADMINISTRATION (HONS.)
BUSINESS ECONOMICS

BUSINESS ANALYTICS (MGT555)

REPORT TITLE:

ANALYSIS ON UNEMPLOYMENT RATE AND REASONS FOR NOT

SEEKING WORK IN MALAYSIA FOR THE YEAR 2018 TO 2023

PREPARED BY:

STUDENT’S NAME STUDENT ID GROUP

1. NUR SU’AIDAH BINTI KHOZAID 2021114451 CS2907B
2. FARHANA HAZWANI BINTI ISMAIL 2021172503 CS2907B

PREPARED FOR:

DR. NORFADZILAH BINTI ABDUL RAZAK

DATE OF SUBMISSION:

JANUARY 1ST, 2024

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 TABLE OF CONTENTS

1.0 BACKGROUND OF STUDY ........................................................................................... 4

2.0 PROBLEMS STATEMENT /ISSUES ............................................................................. 6

3.0 METHODOLOGY ............................................................................................................ 7

3.1 POPULATION ............................................................................................................... 7

3.2 SAMPLE ......................................................................................................................... 7
3.3 DATA SUMMARY ......................................................................................................... 7
4.1 DESCRIPTIVE ANALYSIS ......................................................................................... 8
4.2 STATISTICAL INFERENCE ..................................................................................... 10
4.2.1 ONE-SAMPLE ANALYSIS ..................................................................................... 10
4.2.1.1 CRITICAL VALUE APPROACH ...................................................................... 10
4.2.1.2 p-VALUE APPROACH ...................................................................................... 13
4.2.2 TWO-SAMPLE ANALYSIS .................................................................................... 17
4.2.1.1 CRITICAL VALUE APPROACH AND p-VALUE APPROACH ..................... 17
4.3 ANOVA ANALYSIS..................................................................................................... 21
4.4 REGRESSION ANALYSIS ........................................................................................ 23

5.0 RECOMMENDATIONS................................................................................................. 27

6.0 CONCLUSION ................................................................................................................ 28

7.0 REFERENCES ................................................................................................................ 30

8.0 APPENDICES .................................................................................................................. 31

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 TABLE OF FIGURES

Figure 1. Infographic poster of Labour Force of Malaysia. ...................................................... 4

Figure 2: One-sample Analysis of Housework/Family Responsibility Reason Using Critical
Value Approach ....................................................................................................................... 10
Figure 3: One-sample Analysis of Going For Further Studies Reason Using Critical Value
Approach ................................................................................................................................. 11
Figure 4: One-sample Analysis of Disabled Reason Using Critical Value Approach ............. 12
Figure 5: One-sample Analysis of Housework/Family Responsibility Reason Using p-Value
Approach ................................................................................................................................. 13
Figure 6: One-sample Analysis of Going For Further Studies Reason Using p-Value Approach
................................................................................................................................................. 14
Figure 7: One-sample Analysis of Disabled Reason Using p-Value Approach....................... 15
Figure 8: One-sample Analysis of Housework/Family Responsibility VS Going For Further
Studies Reasons ....................................................................................................................... 17
Figure 9: One-sample Analysis of Housework/Family Responsibility VS Disabled Reasons 18
Figure 10: One-sample Analysis of Going For Further Studies VS Disabled Reasons .......... 19

LIST OF TABLES

Table 1. Data used for analysis. ................................................................................................. 7

Table 2. Descriptive analysis of Housework/ family responsibility. ......................................... 8
Table 3. Descriptive analysis of Going for further studies ........................................................ 8
Table 4. Descriptive analysis of Disability ................................................................................ 9
Table 5. ANOVA Single Factor ............................................................................................... 21
Table 6. ANOVA Regression output. ....................................................................................... 23
Table 7. Pivot table of data used and the trend. ....................................................................... 26

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1.0 BACKGROUND OF STUDY

Figure 1. Infographic poster of Labour Force of Malaysia.

The unemployment rate is the proportion of the labour force that is unemployed. It is a lagging
indicator, which means that it rises and falls in response to the changes in the economy rather
than forecasting them. When the economy is in poor health and job opportunities are scarce,
the unemployment rate is likely to increase (Anderson, 2023). Unemployment remains a global
concern, necessitating a careful examination of its fundamental causes (OECD Economic
Outlook, 2011). This analysis examines the impact of three main independent variables,
housework or family responsibilities, moving on to further studies, and disability on the
dependent variable, the unemployment rate. Understanding these complex relationships is
critical for policymakers and stakeholders seeking to develop specific solutions that address
the various barriers individuals encounter in obtaining and maintaining work.

The impact of housework and family duties on unemployment rates is the first independent
variable under analysis. Balancing domestic responsibilities and career ambitions can be
difficult, especially for women. The purpose of the analysis is to discover how societal
expectations, gender roles, and family duties influence workforce participation. The
analysis seeks to provide insights into potential barriers to long-term employment and to assist

4
the formulation of policies that promote work-life balance and gender equality in the labour
market by investigating these dynamics.

The second independent variable studied in this study is the decision to seek additional
education after finishing primary or secondary education. While more education is frequently
associated with increased employability, the study dives deeper into the complexities of this
relationship. It studies whether long years of study contribute to chronic unemployment or
whether particular educational courses better match with market demands. Understanding the
effect of educational decisions on unemployment rates is critical for educational institutions,
policymakers, and individuals navigating the ever-changing surface area of professional
development.

The third independent variable focuses on the difficulties that disabled people confront in the
labour market. Discrimination, a lack of workplace accommodations, and societal biases all
add to the particular obstacles this demographic faces. The study attempts to understand the
complicated web of factors influencing disabled people's work prospects, giving vital insights
for policymakers as they build inclusive policies to lower unemployment rates among this
group. The study contributes to the larger goal of establishing a more equal and accessible
workforce by addressing the unique problems experienced by disabled individuals.

In summary, this analysis examines the impact of three unique yet interconnected independent
variables on the unemployment rate. It attempts to provide an integrated view of the variables
contributing to the unemployment rate by investigating household dynamics, educational
pursuit choices, and the problems experienced by disabled individuals. The findings have the
potential to shape targeted actions, fostering inclusion and lowering unemployment rates across
varied segments of the population.

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2.0 PROBLEMS STATEMENT /ISSUES

The primary issue highlighted in one of the news is the significant number of recent graduates
in Malaysia, amounting to 841,300 individuals, who chose not to actively seek employment
upon completing their studies (myPF, 2022). The problem revolves around understanding and
addressing the reasons behind this decision. The top three reasons provided in the statement
include graduates citing housework and family responsibilities, pursuing additional schooling
and training, and surprisingly, attributing their non-participation to disability.

The challenge lies in comprehending the complex factors influencing graduates' choices,
whether they are societal expectations, educational gaps, or individual preferences. Unravelling
these underlying reasons is crucial for policymakers, educators, and employers to develop
targeted interventions that cater to the diverse needs of the graduate population. Addressing
these issues can potentially impact employment rates and help in shaping more informed and
effective career development strategies for graduates in Malaysia.

A substantial number of recent graduates, around 300,000, primarily composed of females at

90.4%, opted out of job hunting due to family responsibilities (Bryant, 2022). This
phenomenon hints at potential societal pressures, particularly the expectation for women to
bear a greater burden of family duties, influencing their career decisions. Additionally,
according to a news article by Free Malaysia Today, approximately 270,800 graduates, with a
notable majority of 57.8% being women, chose to pursue further schooling and training before
entering the job market. This indicates a strategic effort to enhance practical skills, potentially
compensating for perceived gaps in their initial education. Surprisingly, 211,100 graduates
cited retirement or old age as the reason for not actively seeking employment, challenging the
conventional notion that education concludes after formal schooling. This suggests a trend of
individuals returning to learning later in life, adding a nuanced dimension to the reasons behind
graduates' decisions to delay or forego immediate job seeking.

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3.0 METHODOLOGY

3.1 POPULATION

The population of the data used is taken from the labour force data provided by Department of
Statistic Malaysia (DOSM) which covering the population of labour supply who are
unemployed because of any of the reason for not seeking work which are because of the
housework or family responsibility, going for further studies or because of disability.

3.2 SAMPLE

As the population of the person who are unemployed for each reasons is in million, hence the
sample taken for this data analysis is from the smaller number of people who are unemployed
from the year of 2018 to 2023. The reasons of those unemployment are based on these three
reasons, housework/family responsibility, going for further studies, and disabled.

3.3 DATA SUMMARY

Table 1. Data used for analysis.

Indicators Reason for not seeking work

Housework/
Going for further
Years Unemployment rate (%) family Disabled
studies
responsibility
2018 3.30 504.30 11770.00 593.00 1258.20
2019 3.30 508.20 11806.70 435.60 1296.30
2020 4.50 711.00 12546.10 584.90 975.80
2021 4.60 733.00 12488.90 599.60 634.90
2022 3.90 630.40 12389.00 654.60 839.80
2023 3.4 577.3 9567.08 403.25 562.45

Table 1 shows the data of the unemployment rate for the year 2018 to 2023. The unemployment
rate is the dependent variable while the three reasons for not seeking work are the independent
variables that influence the rate of unemployment in Malaysia. The data was taken from the
Department of Statistic Malaysia’s (DOSM) website which was updated latest by 8 November
2023.

3.4 ANALYSIS TOOL

In analysing all the data, the data analysis in Microsoft Excel has been used in order to generate
the one-sample analysis, two-sample analysis, ANOVA analysis and the regression analysis.
The other calculation for descriptive analysis are all being calculated using the Microsoft Excel
by entering the suitable formula related to every components in descriptive analysis.

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4.0 FINDINGS AND DISCUSSION

4.1 DESCRIPTIVE ANALYSIS

The analysis of the "Housework/Family Responsibility" variable in Table 2 showcases some

key metrics. The mean, standing at 11761.30, and the median, at 12097.85, provide insights
into the central tendency of the data. The range, measuring 2979.02, illustrates the extent of
variation in responses. The population variance (1059342.595) and standard deviation
(1029.244) indicate the overall spread of the data points. A skewness of -1.978 suggests an
asymmetrical distribution, leaning towards lower values. The kurtosis of 4.144 indicates a
distribution with more extreme values in the tails and a pronounced peak.

Table 2. Descriptive analysis of Housework/ family responsibility.

Housework/ family responsibility

Mean 11761.30
Median 12097.85
Range 2979.02
Population variance 1059342.595
Population standard deviation 1029.244
Skewness -1.978
Kurtosis 4.144

The data on the pursuit of "Further Studies" in Table 3 reveals a mean of 545.16 and a median
of 588.95. The range, indicating the extent of variation, is calculated at 251.35. The population
variance and standard deviation are 8491.570 and 92.150, respectively, offering insights into
the overall spread of responses. The skewness of -0.737 suggests a slight asymmetry in the
distribution, leaning towards lower values but to a lesser extent. The kurtosis of -1.467 indicates
a relatively flatter peak and less pronounced tails compared to a normal distribution.

Table 3. Descriptive analysis of Going for further studies

Going for further studies

Mean 545.16
Median 588.95
Range 251.35
Population variance 8491.570
Population standard deviation 92.150
Skewness -0.737
Kurtosis -1.467

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Based on Table 4, the data for the "Disabled" category indicates an average of 927.91 and a
middle point (median) of 907.80, with responses spreading across a range of 733.85. The
variance (79046.350) and standard deviation (281.152) show how much the data varies overall.
The slight skewness (0.118) suggests a somewhat symmetrical distribution with a slight tail
towards higher values, while the kurtosis (-1.925) implies a distribution with flatter tails and a
less pronounced peak. In essence, these stats provide an easy-to-understand overview of the
central tendency, spread, and shape of the data for individuals in those categories.

Table 4. Descriptive analysis of Disability

Disabled
Mean 927.91
Median 907.80
Range 733.85
Population variance 79046.350
Population standard deviation 281.152
Skewness 0.118
Kurtosis -1.925

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4.2 STATISTICAL INFERENCE

4.2.1 ONE-SAMPLE ANALYSIS

4.2.1.1 CRITICAL VALUE APPROACH

a. Housework/Family Responsibility (One-tailed Test)

Figure 2: One-sample Analysis of Housework/Family Responsibility Reason Using Critical Value

Approach

The first one-sample analysis is regarding housework/family responsibility reason. Based on

labour force data gathered by DOSM, the average number of unemployment rate in Malaysia
from the year of 2018 to 2023 for individuals having housework/family responsibility as a
reason for not seeking work is equal to 15.51 million. Thus, that statement will be assumed as
the null hypothesis. Meanwhile, the alternative hypothesis will be in the opposite side where
the average number of unemployment rate in Malaysia from the year of 2018 to 2023 for
individuals having housework/family responsibility as a reason for not seeking work is more
than 15.51 million. Since this analysis is using the critical value approach, hence the critical
value of t and the test statistic value t must be found. The critical value of t is equal to 2.02

10
while the value of t-test is equal to -8.92. It can be seen that the t-test (-8.92) is less than the
critical value of t (2.02) which it falls under the non-rejection area. Therefore, it is failed to
reject the null hypothesis. In conclusion, The average number of unemployment rate in
Malaysia from the year of 2018 to 2023 for individuals having housework/family responsibility
as a reason for not seeking work is equal to 15.51 million.

b. Going For Further Studies (One-tailed Test)

Figure 3: One-sample Analysis of Going For Further Studies Reason Using Critical Value Approach

The second one-sample analysis focuses on going for further studies reason. According to the
data of labour force retrieved from DOSM, the average unemployment rate in Malaysia from
year 2018 to 2023 for individuals having going for further studies reason for not seeking work
is equal to 14.62 million. That statement will therefore be taken as the null hypothesis.
Conversely, the alternative hypothesis will be on the other side, the average unemployment rate
in Malaysia from year 2018 to 2023 for individuals having going for further studies reason for
not seeking work is more than 14.62 million. The critical value of t and the test statistic value
t must be determined because this analysis employs the critical value approach. The t-test value

11
is equal to -374.13, whereas the critical value of t is equal to 2.02. As can be observed, the t-
test (-374.13) is within the non-rejection area because it is less than the critical t-value (2.02).
Therefore, the null hypothesis cannot be rejected. Hence, in can be concluded that the average
unemployment rate in Malaysia from year 2018 to 2023 for individuals having going for further
studies reason for not seeking work is equal to 14.62 million.

c. Disabled (One-tailed Test)

Figure 4: One-sample Analysis of Disabled Reason Using Critical Value Approach

The purpose of the third one-sample analysis is to analyse the reason of disability. Based on
labour force data obtained from DOSM, the average of unemployment rate in Malaysia from
year 2018 to 2023 for individuals disability reason for not seeking work is equal to 8.92 million.
Thus, such assumption will be considered the null hypothesis. On the other hand, the alternative
hypothesis states that, the average unemployment rate in Malaysia from year 2018 to 2023 for
individuals disability reason for not seeking work is more than 8.92 million. Because this
analysis uses the critical value approach, it is necessary to identify the critical value of t as well
as the test statistic value t. The critical value of t is equal to 2.02, but the t-test value is equal to

12
-69.63. Since the t-test (-69.63) is less than the crucial t-value (2.02), it is within the non-
rejection region, as can be shown. It is therefore impossible to reject the null hypothesis. As a
result, it can be said that, the average unemployment rate in Malaysia from year 2018 to 2023
for individuals disability reason for not seeking work is equal to 8.92 million.

4.2.1.2 p-VALUE APPROACH

a. Housework/Family Responsibility (One-tailed Test)

Figure 5: One-sample Analysis of Housework/Family Responsibility Reason Using p-Value Approach

This analysis is analysing the result of one-sample analysis of the housework/family

responsibility as it is one of the reasons for not seeking work in Malaysia. The analysis started
with the hypothesis where the null hypothesis is the average number of unemployment rate in
Malaysia from the year of 2018 to 2023 for individuals having housework/family responsibility
as a reason for not seeking work is equal to 15.51 million where the data was retrieved from
the DOSM website. Meanwhile, the alternative hypothesis is assumed as the average number
of unemployment rate in Malaysia from the year of 2018 to 2023 for individuals having
housework/family responsibility as a reason for not seeking work is more than 15.51 million.

13
As this analysis is using the approach of p-value, hence there will be a comparison between the
significant value of a and the calculated p-value. The p-value is equal to 0.999853 which is
more than value of a (0.05). Therefore, the decision from this analysis if failed to reject the
null hypothesis. The conclusion will be the average number of unemployment rate in Malaysia
from the year of 2018 to 2023 for individuals having housework/family responsibility as a
reason for not seeking work is equal to 15.51 million.

b. Going For Further Studies (One-tailed Test)

Figure 6: One-sample Analysis of Going For Further Studies Reason Using p-Value Approach

Since going for further studies are a contributing factor to people not looking for job in
Malaysia, this analysis examines the findings of a one-sample analysis of this data. The analysis
began with the null hypothesis, which states that, the average unemployment rate in Malaysia
from year 2018 to 2023 for individuals having going for further studies reason for not seeking
work is equal to 14.62 million, based on labour force statistics received from DOSM. In the
meantime, the alternative hypothesis is based on the assumption that, the average
unemployment rate in Malaysia from year 2018 to 2023 for individuals having going for further

14
studies reason for not seeking work is more than 14.62 million. Since the p-value approach is
being used in this analysis, a comparison will be made between the computed p-value and the
significant value of a. The p-value is greater than the significance level (0.05) at 1.00. As a
result, the null hypothesis is failed to reject. Hence, it can be concluded that the average
unemployment rate in Malaysia from year 2018 to 2023 for individuals having going for further
studies reason for not seeking work is equal to 14.62 million.

c. Disabled (One-tailed Test)

Figure 7: One-sample Analysis of Disabled Reason Using p-Value Approach

This analysis looks at the results of a one-sample analysis of this data because disability is one
of the reasons why people in Malaysia choose not to seek for work. The null hypothesis, which
based on the labour force data obtained from DOSM indicates that the average unemployment
rate in Malaysia from year 2018 to 2023 for individuals disability reason for not seeking work
is equal to 8.92 million, was the starting point for the analysis. Meanwhile, the alternative
hypothesis is predicated on the supposition that, the average unemployment rate in Malaysia
from year 2018 to 2023 for individuals disability reason for not seeking work is more than 8.92

15
million. Since this analysis is using the p-value approach, a comparison will be done between
the significant value of a and the computed p-value. At 1.00, the p-value exceeds the
significance level (0.05). The null hypothesis is therefore not successfully rejected. Thus, it is
possible to draw the conclusion that, the average unemployment rate in Malaysia from year
2018 to 2023 for individuals disability reason for not seeking work is equal to 8.92 million.

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4.2.2 TWO-SAMPLE ANALYSIS

4.2.1.1 CRITICAL VALUE APPROACH AND p-VALUE APPROACH

a. Housework/Family Responsibility VS Going For Further Studies (One-tailed Test)

Figure 8: One-sample Analysis of Housework/Family Responsibility VS Going For Further Studies

Reasons

Figure 8 shows the result on the two-sample analysis between the housework/family
responsibility and the going for further studies reasons. For the null hypothesis, it is assumed
that the unemployment rate for the reason of housework/family responsibility is less than or
equal to the reason of going for further studies. On the other hand, the alternative hypothesis is
going to be the unemployment rate for the reason of housework/family responsibility is more
than the reason of going for further studies. Comparing the result uses the critical value
approach resulting in rejecting the null hypothesis. This is because, the critical value of t (2.015)
is less the t-test statistic value (24.27).

17
It is still the same for the result from the p-value approach. The value of p is 0.000001107
which is less than the significant level a (0.05). This shows that the both approach computes
the same result which is reject the null hypothesis. Thus, based on the analysis that has been
done between the reason of housework/family responsibility and going for further studies, the
conclusion could be the unemployment rate for the reason of housework/family responsibility
is more than the reason of going for further studies as the alternative hypothesis is accepted.

b. Housework/Family Responsibility VS Disabled (One-tailed Test)

Figure 9: One-sample Analysis of Housework/Family Responsibility VS Disabled Reasons

The results of the two-sample analysis between the housework/family responsibility and the
disability are displayed in Figure 9. The null hypothesis is stated that the unemployment rate
for the reason of housework/family responsibility is less than or equal to the reason of disability.
However, the alternative hypothesis holds that the unemployment rate for the reason of
housework/family responsibility is more than the reason of disability. By applying the critical

18
value approach to the comparison, the null hypothesis is rejected. This is as a result of the t-
test statistic value (22.7) being larger than the critical value of t (1.94).

The outcome of the p-value approach remains unchanged. At 0.000000239, the p-value is
below the significance level of 0.05. This demonstrates that both methods calculate the same
outcome, which is the rejection of the null hypothesis. Thus, the conclusion that can be drawn
from the analysis between the reasons for housework/family responsibility and disability could
be that, if the alternative hypothesis is accepted, the unemployment rate for the reason of
housework/family responsibility is more than the reason of disability.

c. Going For Further Studies VS Disabled (One-tailed Test)

Figure 10: One-sample Analysis of Going For Further Studies VS Disabled Reasons

19
Figure 10 shows the findings of the two-sample analysis comparing the going for studies
reason and the disability reason. The null hypothesis posits that the unemployment rate for the
reason of going for further studies is less than or equal to the reason of disability. The alternative
hypothesis, however, contends that the unemployment rate for the reason of going for further
studies is more than the reason of disability. The comparison is done using the critical value
approach, which leads to the rejection of the null hypothesis. This is because the critical value
of t (1.94) is less than the t-test statistic value of 2.89.

As for the p-value, at 0.0138, is below than the significance level of 0.05. This illustrates that
the results of both approaches compute the same result, which is the null hypothesis' rejection.
Therefore, if the alternative hypothesis is adopted, the unemployment rate for the reason of
going for further studies is more than the reason of disability. This is the conclusion that can be
taken from the analysis between the reasons for housework/family responsibility and disability.

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4.3 ANOVA ANALYSIS

Table 5. ANOVA Single Factor

Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Housework/Family
6 70567.781 11761.297 1271211.114
responsibility
Going for further
6 3270.954 545.159 10189.884
studies
Disabled 6 5567.446 927.908 94855.620

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 486621122 2 243310561 530.375 1.21018E-14 3.682
Within Groups 6881283.092 15 458752.206

Total 493502405.1 17

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The analysis of variance (ANOVA) was used to determine the influence of several categories,
namely "Housework/Family Responsibility," "Going for Further Studies," and "Disabled," on
the variable of interest. A large F-statistic of 530.375 (df between groups = 2, df within groups
= 15, p < 0.001) indicated a significant difference among the groups. This high F-statistic
indicates that the means of at least two groups differ significantly. Further analysis shows that
the p-value associated with the F-statistic is extremely small (1.21x10-14), much below the usual
significance limit of 0.05. As a result, we reject the null hypothesis, demonstrating that the
variable of interest differs statistically significantly between groups.

Post-hoc testing or pairwise comparisons can be used to determine which individual groups
contribute to this difference. It is noteworthy that the mean values and variances within each
group provide additional context. The mean values for "Housework/Family Responsibility,"
"Going for Further Studies," and "Disabled" are 11761.297, 545.159, and 927.908,
respectively, suggesting significant variance among categories.

In conclusion, the ANOVA results strongly suggest that the three categories have a significant
impact on the variable under consideration. Further analysis, such as post-hoc tests, is
recommended to pinpoint the specific group differences.

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4.4 REGRESSION ANALYSIS

Table 6. ANOVA Regression output.

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.944
R Square 0.892
Adjusted R Square 0.730
Standard Error 51.131
Observations 6

ANOVA
Significance
df SS MS F F
Regression 3 43119.404 14373.135 5.498 0.158
Residual 2 5228.836 2614.418
Total 5 48348.240

Standard Upper Lower Upper

Coefficients Error t Stat P-value Lower 95% 95% 95.0% 95.0%
-
Intercept 29.122 267.599 0.109 0.923 -1122.265 1180.508 1122.265 1180.508
Housework/Family
responsibility 0.085 0.038 2.231 0.155 -0.079 0.250 -0.079 0.250
Going for further
studies -0.261 0.402 -0.651 0.582 -1.990 1.467 -1.990 1.467
Disabled -0.301 0.087 -3.468 0.074 -0.675 0.072 -0.675 0.072

23
The R2 value of 0.892 indicates that the model explains a substantial proportion (89.2%) of the
variance in the dependent variable, suggesting that the included independent variables
collectively contribute significantly to explaining the variability. Another 10.8% cannot
influence the change in unemployment rate due to missing independent variables (factors) that
are not included in the model. The model has a very high explanatory power as the R2 is more
than 80%. Besides, it is notably that the adjusted R2 is 0.73 or 73%.

In terms of individual predictors, the p-value of 0.155 for Housework/Family responsibility

suggests that there is not strong evidence to reject the null hypothesis, indicating that the
observed relationship may be due to chance. Similarly, the high p-value of 0.582 for Going for
further studies implies a lack of significant evidence supporting a relationship between this
variable and the dependent variable. However, the p-value of 0.074 for the Disabled variable
indicates some evidence to reject the null hypothesis, suggesting a potential significant
relationship between the Disabled variable and the dependent variable.

Turning to the overall model significance, the F-statistic of 5.498 with a p-value of 0.158
suggests that the collective effect of all independent variables may not be statistically
significant at a conventional level (a = 0.05). This implies that the model as a whole might not
be a strong fit for the data. However, there are nuances in the broader context that impact the
overall model fit. Malaysia’s ongoing high youth unemployment rate of 10% is attributed to a
mismatch of skilled talent produced by local training institutions and the actual skills in demand
by the market, according to Economy Minister Mohd Rafizi Ramli. He emphasizes that the
statement linking increases in the minimum wage to reduced demand for the labour force
among the youth is inaccurate. Rafizi highlights the skills gap between the jobs in demand,
particularly those requiring digital skills, and the talent quality produced by the educational
system.

Adding complexity to the model's interpretation is the uncertain job market, where the belief
that a university degree does not guarantee a bright future influences school-leavers' decisions
not to pursue tertiary education. Last year, 5,023,400 graduates entered the labour force, with
4.69% experiencing unemployment. This figure raises concerns, especially as many graduates
earn a minimum wage of RM1,500 despite holding degrees. A survey reveals that
communication skills, or rather the lack thereof, significantly affect graduates' employability.

24
Poor proficiency in Bahasa Malaysia and English emerges as a primary reason for hiring
challenges, with some graduates regretting their failure to improve language skills during their
university years.

The soft job market, as evidenced by the challenges faced by graduates, adds a layer of
complexity to the overall model fit. Graduates, some earning a minimum wage despite holding
degrees, encounter difficulties securing jobs due to factors such as language proficiency,
reluctance to migrate for work, and academic performance. While the R^2 value indicates a
high degree of explained variance in the dependent variable, the intricacies of youth
unemployment and the challenges faced by graduates highlight the need for a more nuanced
understanding of the model's effectiveness. The mismatch between skills in demand and those
produced by the education system, coupled with broader economic factors, suggests that
refining the model to consider these complexities might enhance its overall fit for the data.

25
4.5 PIVOT TABLE

Table 7. Pivot table of data used and the trend.

Sum of Unemployment rate Sum of Housework/ family Sum of Going for further
Sum of Disabled
(%) responsibility studies
Years
2018 504.3 11770 593 1258.2
2018 Total 504.3 11770 593 1258.2
2019 508.2 11806.7 435.6 1296.3
2019 Total 508.2 11806.7 435.6 1296.3
2020 711 12546.1 584.9 975.8
2020 Total 711 12546.1 584.9 975.8
2021 733 12488.9 599.6 634.9
2021 Total 733 12488.9 599.6 634.9
2022 630.4 12389 654.6 839.8
2022 Total 630.4 12389 654.6 839.8
2023 577.3 9567.080633 403.254169 562.4462665
2023 Total 577.3 9567.080633 403.254169 562.4462665
Grand Total 3664.2 70567.78063 3270.954169 5567.446267
Trend Increase, Decrease Increase, Decrease Decrease, Increase, Decrease Decrease, Increase, Decrease

26
5.0 RECOMMENDATIONS

Examining the correlation between the unemployment rate and identified factors offers
valuable insights into the root causes of unemployment. This detailed analysis not only
enhances the understanding of the issue but also lays the groundwork for crafting targeted
policies. For instance, if a substantial number of graduates are not actively seeking employment
due to family responsibilities, implementing policies that support working mothers could create
a more inclusive work environment, encouraging greater female participation in the workforce.

Similarly, if the analysis reveals a significant trend of graduates pursuing further education,
incentivizing employers to provide comprehensive training opportunities could bridge the gap
between academic qualifications and the skills demanded by the job market. This proactive
approach aims to facilitate a smoother transition for graduates into gainful employment.

While the model's high R2 value underscores its strength, acknowledging and addressing the
intricacies of the job market is crucial. The challenges faced by graduates, combined with
Malaysia's evolving economic landscape, demand a more refined and nuanced model. A
thorough exploration of these complexities through comprehensive research is essential for
building a more solid and applicable model.

In light of these considerations, further investigation and refinement of the model are strongly
recommended. This approach is pivotal in capturing the subtle and diverse aspects that
influence the dependent variable, providing a more accurate understanding of the factors
shaping youth unemployment within Malaysia's dynamic economic context. Such an improved
model not only contributes to academic knowledge but also offers practical insights for
policymakers and stakeholders seeking effective solutions to the intricate challenges within the
labour market.

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6.0 CONCLUSION

In conclusion, this analysis delves into the intricate dynamics of unemployment, focusing on
three significant independent variables which are housework or family responsibilities,
pursuing further studies, and disability to understand their collective impact on the
unemployment rate. Recognizing the unemployment rate as a lagging indicator responding to
economic changes, the study emphasizes the importance of comprehending its fundamental
causes.

Moving to the statistical inference section, the one-sample analysis employs both critical value
and p-value approaches to assess the average unemployment rates for each variable. For
"Housework/Family Responsibility," the results suggest that the average unemployment rate is
equal to 15.51 million, failing to reject the null hypothesis. Similarly, for "Going for Further
Studies" and "Disabled," the null hypotheses are retained, indicating average unemployment
rates of 14.62 million and 8.92 million, respectively.

The two-sample analyses compare the variables, revealing significant differences. In the
comparison between "Housework/Family Responsibility" and "Going for Further Studies," the
evidence supports the rejection of the null hypothesis, indicating that the unemployment rate
for housework/family responsibility is more than that for further studies. The same pattern
holds for the comparison between "Housework/Family Responsibility" and "Disabled," as well
as between "Going for Further Studies" and "Disabled."

The uncertain job market, marked by the belief that a university degree does not guarantee
success, amplifies the challenges faced by graduates. Language proficiency, migration
reluctance, and academic performance emerge as critical factors affecting employability,
shedding light on the intricate dynamics influencing job outcomes. While the R2 value reflects
a high degree of explained variance, the complexities of youth unemployment and the
challenges faced by graduates call for a more nuanced understanding of the model's
effectiveness.

The mismatch between demanded skills and those provided by the education system, coupled
with broader economic factors, suggests the necessity of refining the model to incorporate these
intricacies. Enhancing the model to account for these complexities might contribute to a more

28
accurate representation of the data and improve its overall fit. In essence, acknowledging the
multifaceted nature of youth unemployment and the challenges graduates encounter urges a
continuous refinement of models to better capture the dynamic realities of the job market.

These findings contribute valuable insights into the factors influencing unemployment rates in
Malaysia. Policymakers and stakeholders can use this information to develop targeted
interventions addressing specific challenges related to housework/family responsibility, further
studies, and disabilities. It is crucial to consider these nuanced factors to formulate effective
policies and strategies that cater to the diverse needs of the population and promote inclusive
workforce participation.

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7.0 REFERENCES

Anderson, S. (16 November, 2023). What Is the Unemployment Rate? Rates by State.
Retrieved from Investopedia:
https://www.investopedia.com/terms/u/unemploymentrate.asp#:~:text=The%20unemp
loyment%20rate%20is%20the,can%20be%20expected%20to%20rise.
PERSISTENCE OF HIGH UNEMPLOYMENT: WHAT RISKS? WHAT POLICIES? . (2011).
Retrieved from OECD Economic Outlook:
https://www.oecd.org/economy/labour/47656668.pdf
myPF. (28 August, 2022). 6 reasons why graduates are not seeking work. Retrieved from
freemalaysiatoday FMT:
https://www.freemalaysiatoday.com/category/leisure/money/2022/08/28/6-reasons-
why-graduates-are-not-seeking-work/
Bryant, J. (8 JULY, 2022). Women Continue to Outnumber Men in College Completion.
Retrieved from Best College:
https://www.bestcolleges.com/news/analysis/2021/11/19/women-complete-college-
more-than-men/
OECD Economic Outlook. (2011). PERSISTENCE OF HIGH UNEMPLOYMENT: WHAT
RISKS? WHAT POLICIES? . Retrieved from OECD:
https://www.oecd.org/economy/labour/47656668.pdf

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8.0 APPENDICES

14000

12000

10000 Sum of Unemployment

rate (%)
8000 Sum of Housework/
family responsibility
6000 Sum of Going for further
studies
4000 Sum of Disabled

2000

0
2018 2019 2020 2021 2022 2023

Indicators Reason for not seeking work

Housework/
Going for further
Years Unemployment rate (%) family Disabled
studies
responsibility
2018 3.30 504.30 11770.00 593.00 1258.20
2019 3.30 508.20 11806.70 435.60 1296.30
2020 4.50 711.00 12546.10 584.90 975.80
2021 4.60 733.00 12488.90 599.60 634.90
2022 3.90 630.40 12389.00 654.60 839.80
2023 3.4 577.3 9567.08 403.25 562.45

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