Tough 2016 for job seekers, worse for fresh grads, warn experts

Almost all job seekers will find it difficult to get work this year, but the hardest hit will be fresh graduates, say career experts and the private sector employers’ group, as more and more firms freeze recruitment. Career websites, such as JobStreet.com, said companies were still advertising openings in the first quarter of this year, which was considered a peak hiring season. Others, such as Monster.com, however, expect to see a decline in job offers in the first half of 2016 compared with the same period in 2015. This fall continued from the last quarter of 2015, said Monster.com director Sanjay Modi, as Malaysian business conditions suffered from a slowdown in China’s economy and the weak ringgit against the US dollar. The nation’s reliance on the oil and gas sector has also impacted on business activities in many sectors, said Modi, the site’s managing director for India, Middle East, Southeast Asia and Hong Kong. “Employers have been prompted to put in place more stringent recruitment policies to optimise organisational resources and to cut costs, dampening overall hiring sentiments,” Modi said in an email. Declines everywhere The biggest drop in jobs was expected to be in the oil and gas sector, a trend that was seen all over the world, said Modi. The sector recorded a 30% drop in job openings in December 2015. “We also expect to see a decline within the logistic, courier/freight/transportation, shipping and marine sector, as the maritime industry continues to struggle with weakening global demand and trade.” According to Monster.com, this sector also showed the steepest decline in job openings year-on-year at 35% in December 2015. Other sectors which saw fewer hiring are hospitality (-34%) and IT (-33%). The marketing sector, however, was likely to see more job openings in Malaysia, said Modi, adding that out of all the sectors, it registered 1% growth year-on-year in December 2015. “There will still be a demand in Malaysia for niche talent, as it is an attractive location for MNCs to establish their shared services and contact centres, and so we are likely to witness a rising need for skilled talent to fill these job roles in 2016.” The first four months of the year may be the best time to look for new openings. JobStreet country manager for Malaysia Chook Yuh Yng said a majority of companies in all sectors have posted openings on its website with a total of 21,000 job advertisements. “The top sectors are manufacturing, banking and financial services, construction, computer and information technology and retail,” said Chook. JobStreet’s market outlook survey showed that 50% of employers expected to increase their hiring in Q1. “It has become a seasonal trend for employees to change jobs right after receiving their bonuses, prompting employers to increase their hiring activities in order to fill those vacant positions,” she said. Job advice Although there would still be entry-level jobs, junior management positions, which were usually sought by university graduates, would be harder to come by, said Datuk Shamsuddin Bardan, executive director of the Malaysian Employers Federation (MEF). “As companies don’t have the money to expand due to weak demand, they can’t create these positions. So that’s why there will be an increase in unemployed graduates,” said Shamsuddin. MEF estimates that 63% of the unemployed in Malaysia now are fresh diploma and degree-holders and this number could rise this year. Modi echoed this, saying that there was also a disconnect between the supply of fresh graduates and the jobs available for their qualifications. Job seekers wanting to survive this year’s competitive market had to be adaptable, seek stability and not make decisions based on just salaries, he said. “They should not strive to be overambitious, aim to always pick up jobs that can enhance their existing skills, or to allow them to pick up new skills, increasing their employability in time to come,” he added. School leavers would do well to join the freelance workforce to fill needs in the hospitality, retail, administration and logistics sectors, where companies which were trying to keep costs low would likely hire them. Again, opportunities to expand skills and experience should be taken up, said Modi. “Those who have been retrenched are also encouraged to look into Malaysia SMEs (small and medium enterprises) for job opportunities since the government has announced plans to aid them. “Malaysian SMEs are also looking to fill their management gaps and are targeting the retrenched yet experienced workforce from bigger corporations,” said Modi. – February 7, 2016.