Scattered population, poor infrastructure among causes of Sabah's high jobless rate

KOTA KINABALU: According to Deputy Human Resources Minister Mustapha Sakmud, poor infrastructure and the challenging geographical distribution in Sabah are the main reasons for the state’s highest unemployment rate in the country. He stated that these factors make it difficult for both access to education and businesses to operate and thrive. Mustapha Sakmud made these comments on August 30th when asked about Sabah’s high unemployment rate.

Mustapha Sakmud also mentioned that the migration rate in Sabah is relatively low compared to other states. He added that around 96% of job seekers choose to stay in Sabah instead of seeking opportunities in other regions.

He further explained that Sabah has a high supply of job seekers, with the MYFutureJobs portal recording the fourth highest job seeker registration in the country. However, the average demand is only about 67,000 vacancies per year. Most of the available vacancies are for elementary occupations such as cleaning and manual labor.

Mustapha Sakmud also highlighted the challenge of finding jobs in rural areas. He mentioned that 55% of Sabahans live in rural areas, where job opportunities are limited.

Human Resources Minister V Sivakumar previously pointed out that Sabah has the highest number of unemployed people in the country, with 29% or 169,800 individuals being jobless. Mustapha Sakmud expressed concern about the consistently high number of unemployed individuals in Sabah, despite an improvement in the national employment rate.

Currently, the unemployment rate in Sabah stands at 7.5%, which is more than double the national unemployment rate of 3.5%. Sabah’s gross domestic product (GDP) growth rate was also lower than the national rate, with 3.7% compared to 8.7% last year.

Mustapha Sakmud reassured that continuous efforts are being made to improve the labor market conditions in Sabah. The Ministry of Human Resources, through the Social Security Organization (Socso), organizes various programs, including job matching and job readiness programs not only in Sabah but also in other states and the Klang Valley. As of this month, 228 interview sessions and 58 job readiness programs have been organized in Sabah to facilitate job placement.

Socso has also collaborated with local community points such as polytechnics, community centers, and community colleges. They have introduced 16 MYFutureJobs Satellite Centers that serve as one-stop centers for employment services in the respective communities.

To address the structural issues in Sabah, MYFutureJobs organizes career awareness programs in secondary schools to expose students to labor market trends and future job requirements. Various tools are utilized in these programs to help students choose suitable courses for higher education.

Employers who successfully hire local talents for positions typically filled by foreign workers are eligible for incentive packages. Mustapha Sakmud also listed reskilling and upskilling programs for unemployed SPM-level school leavers, Technical and Vocational Education and Training (TVET) students, and informal sector workers.