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This article was first published by the New Strait Times here.

A huge economic downturn looms as the Covid-19 crisis surges in Malaysia, leading us to slip rapidly into a deep global recession. The majority of employers are taking a big hit and among those who have felt the brunt of the economic meltdown during this ongoing pandemic, are the youths all over the world. 

The souring economy brought about by the pandemic could affect over 50,000 fresh graduates in Malaysia this year against the backdrop of an already quite alarming graduate unemployment stemming from job shortages and skills mismatch. 

The Class of 2020 particularly is at risk of graduating into a recession owing to immense economic fallout. A brewing economic storm is likely to trigger tightened hiring and limited job vacancies, raising the risk of unemployment fresh out of graduation.

As competition grows due to increased demand from returning students and students whose placements have been suspended overseas during the summer, internships will also be in shorter supply. This will leave a void in one’s resume. 

Besides, several key networking events for graduating students are likely to be cancelled. This includes ‘The London Malaysian Career Fair’ hosted by UKEC-GRADUAN where Malaysian students in the UK and Ireland seek employment opportunities. The physical fair has now been resolved to a virtual platform instead in light of the lockdown. Increasingly strict measures of social distancing would eventually interrupt the activities of social causes that will characterize this generation. 

During the MCO time, the domestic economy will operate at around 45 per cent of its capacity. The labour market is also predicted to be considerably weaker, as warned by the central bank. The unemployment rate is expected to increase to 4%. The country’s unemployment rate was 3.7% during the 2008-2009 Global Financial Crisis and 3.2% during the Asian Financial Crisis in 1998.  

Younger employees tend to have more difficulties seeking and retaining jobs in a recession. For example, during the Global Financial Crisis, the unemployment rate for all jobs across the world was at 10.2% – around half of the 10.2% peak for employees between the ages of 16 and 24.

Fresh graduates are far from able to fetch the benefits from the periodical release of fiscal stimulus packages worth RM250 billion in total. This key policy response designed by Malaysia, among other things, is intended to help employers retain workers. This relief would do more for those who are already employed rather than for fresh graduates who wish to enter the labour market. 

As the world tides out the Covid-19 pandemic, here are what the youths can do. We must switch from being reactive to being proactive. Focus not on getting through the downturn, but on being able to manoeuvre the upturn when it comes. This lull time is an optimal period to address skill gaps that may hinder the attractiveness of future job applications and to earn mentorship on how to develop ourselves. This pertains not only to the employees who are struggling to keep their jobs but also to those of us who are still studying and have yet to enter the job market. 

We’re landing on a note of hope. Despite grim short-term projections of the labour market, the outlook for economic growth is expected to improve over the second half of 2020 and 2021. Though we have yet to see the full extent of unemployment and the overall economic recession prompted by Covid-19, analysts anticipate that countries will get back to work once the pandemic is under control. Perhaps even, Malaysia can transform this unprecedented crisis into an unprecedented opportunity, if we play our cards correctly.