EASY access to jobs in the gig economy and the prospect of being able to earn a daily wage are among the reasons why Sijil Pelajaran Malaysia (SPM) school leavers are opting not to continue their studies, educationists said.

This has resulted in a new generation of youth who are more interested to eke out a living instead of furthering their education, they said.

Universiti Kebangsaan Malaysia Centre of Community Education and Well-being educationist Anuar Ahmad said there are two main factors why the young choose not to pursue tertiary education.

“One of them is easy access to jobs which are readily available, such as those in the gig economy.

“And then there are the small and medium enterprises that are rapidly growing and in need manpower – some of these businesses pay daily wages.

“The youth are enticed to earn money instead of continuing their studies,” he told The Malaysian Insight.

It was reported that since 2020 a total of 188,884 or 51% of 365,553 Bumiputra SPM school leavers have rejected offers to further their studies at public institutions of higher learning.

In June, the Higher Education Ministry told Dewan Negara that a total of 36,910 Bumiputera SPM school leavers in 2020 rejected offers to further their studies. The number increased to 78,543 students in 2021 and 73,431 students in 2022.

Among the factors that influenced them to make this choice was financial problems and not wanting to be bound by education loans. They were also lured by the prospect of landing work that promises a good income.

Universiti Teknologi Mara (UiTM) former vice-chancellor Sahol Hamid Abu Bakar said the situation did not only involve youth in rural areas. Those living in cities squeezed by the high cost of living are also looking opting to find work instead.

“Some also think higher qualifications do not guarantee high income opportunities and it is better to work as a food delivery rider than an engineer which offers a low salary despite their having to study hard for four years,” he was reported as saying.

A degree does not guarantee a job

Anuar said another factor is that the sphere of part-time gigs and online businesses keep evolving.

“Fifteen years ago there was no such thing. School leavers continue their studies until they graduate and then look for a job.

“What we are seeing now is a new trend in our economic system and the lifestyle of the youth,” Anuar said.

He said students realise they can make good money in online businesses, so they don’t see a reason to continue their studies.

“I also agree that sometimes if you are diligent in doing business online, you can make good money. That’s why the opportunities are there (to make money).”

Anwar also said difficulty in finding full-time employment is another reason school leavers give up studying.

He said there was the perception that even if they go to university and graduate, they might still be unemployed.

“This also affects their way of thinking, that if they continue their studies there is no guarantee they can get a job.

“There are also graduates out there who have yet to get a job and cannot use their degree.”

Anuar also said financial issues were not a major factor as there are many avenues for education funding, such as loans from PTPTN (National Higher Education Fund Corporation) and other agencies.

“Universities are also there to assist students in getting loans.

“However, we do believe that getting a higher education is important for their future and to expand their knowledge in the long run, because sometimes doing business is unpredictable.”

Anuar said his advice was that students should continue their studies, enter university and at the same time carry on with their part-time jobs.

Gigs provide lucrative income

Universiti Malaya Education Faculty Assoc Prof Zuwati Hasim said many SPM school leavers opted to join the gig economy because they find the work lucrative and fulfilling.

She said the youth see this as a viable option and an easy way to earn an income with jobs that require minimal capabilities.

“The gig economy is lucrative in the sense that it is flexible. And to the early career workers and those with young families, this might be the most suitable option to earn a living.”

She also said school leavers should decide on whether to pursue higher education or work based on their needs.

“Economic background does play a role in making a decision. Although there is an option of taking PTPTN as a source of financial support for their studies, sometimes it does not cover other living costs. They will also need to repay their education loan.

“We cannot blame them for not wanting to pursue further education as their families and they themselves know what works for them,” Zuwati said.

She said gig jobs and entrepreneurship among the youth are not uncommon and in fact students in tertiary education are encouraged to venture into it.

“All they need to do is to ensure a right balance between studying and doing business or work.

“For some, maybe it is best to focus on one thing at a time and pursue their study when they are ready.

“There is no age limit for adult learning, so those who would like to continue their education should do so.”

Mismatch between qualification and job market

Mohammad Abdul Hamid of Pertubuhan Ikram Malaysia said there is a disillusionment on the value of education.

He said many students felt that the resources, time and money spent do not guarantee a job that is commensurate with their level of education.

“Some (not all) social media influencers show that you can earn good income without a degree.

“It’s a quick way of earning money while enjoying life. Perceived as enjoying better well-being compared to studying,” Mohammad said.

He said another issue was the mismatch between qualification and the job market.

“This is partly due to structural issues in the economy where there are more low-skill jobs available than high-skill ones.”

He said this raised concerns of debt accumulation with a low prospect of landing quality jobs.

Mohammad, however, said the education system needs changes and the government should encourage lifelong learning.

“The education system must quickly adapt with the changing times. Look at big tech companies, they are creating job opportunities based on qualifications away from traditional university education.

“Students can always go back to education in their late 20s, early 30s. Policymakers should emphasise on lifelong education, formal or informal,” he added. – October 3, 2023.