Challenges and Strategies of Government Agencies in Addressing the Issue of Youth Unxemployment in Malaysia

Abstract

Youth unemployment has been a major challenge to Malaysia’s socio-economic development since 2020. The unemployment rate for youth aged 15 to 24 was recorded at approximately 10.3% in 2025, with unemployment increasing compared to the previous year. This statistic has implications for labor productivity and youth well-being in the country. This study examines the challenges and strategies adopted by Malaysian government agencies in addressing youth unemployment between 2020 and 2025. Approaches considered include national development policies, implementation of training programs, and work incentives through government agencies. The study methodology uses a combination of secondary data analysis from Labor Force Statistics and a review of government programs such as My STEP, Jamin Kerja, My Future Jobs, and work incentives implemented by related agencies. The literature review shows that work incentive programs and increasing youth competitiveness are the government’s main approaches. This study outlines challenges such as skills gaps, labor market mismatches, and limited job supply. Finally, the article proposes strategies to strengthen public-private sector collaboration, improve vocational education and training (TVET), and implement more comprehensive policies to address the persistent problem of youth unemployment.