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Introduction Unemployment is a state where a person is willing and available to work but remains un-hired. Unemployment is often used as a measure of the health of the economy. It much related to Gross Domestic Product (GDP) and inflation rate. In Malaysia, legal age of employment is starting from 16 years old and retirement in age 60. When an individual from the age group 16 to 60 years old, despite their willingness to do work, cannot find a suitable paying job, he or she was considered as unemployed. The unemployment rate measures the percentage of a country's workforce who is seeking employment. Unemployment occurs when any of the factors of production (labor, land, capital and entrepreneurship) are not employed in production of goods and services. Growth of a country can be found if unemployment is low. Conversely, a country with a high unemployment rate, means the use of human resources do not fully utilize. Type of unemployment There are three main types of unemployment: structural, frictional and cyclical. The first two make up the natural unemployment rate. The third rises when demand falls, usually during a recession. Cyclical Unemployment Cyclical Unemployment is the deviation of unemployment from its natural rate. Cyclical Unemployment is caused when the economy slip into a recession and jobs are lost because of economy slowdown. Once the business cycle recovers, the jobs are regained. When the economy enters a recession, the demand for job fall; many of the jobs lost during are recession. This occurs when the demand of goods and services fall drastically causing contraction phase in business cycle and forcing business to lay off large numbers of workers to cut costs.  Frictional Unemployment Frictional unemployment is when workers leave their old jobs but have not yet found new ones. Most of the time workers leave voluntarily, either because they need to move, or they have saved up enough money to allow them to look for a better job. Frictional unemployment is short-term and a natural part of the job searching process. In fact, frictional unemployment is good for the economy, as it allows workers to move to jobs where they can be more productive. Structural Unemployment Structural Unemployment occurs when there are some fundamental changes in the economy that are not related to the normal business cycle. It could be due to the number of jobs available in some labor markets is insufficient to provide a job for everyone who want it. Structural unemployment occurs when there are shifts in the economy that create a mismatch between the skills workers have and the skills needed by employers. For Example, a new robot shoe factory could lead to 90% of unemployment in south-east Asia due to automation. (Source: https://www.theguardian.com) The workers need to learn how to manage the robots that replaced them. Those that don't must be retrained for other jobs, or face long-term structural unemployment. Besides this 3 type of unemployment, some economists define others additional types of unemployment, such as seasonal and classical. Seasonal Unemployment Seasonal Unemployment may occur in certain region. As an example, the unemployment may rise during raining monsoon season when no fishing activities can be carried out. Classical Unemployment Classical Unemployment occurs when real wages are kept above the market clearing wages rate, leading to a surplus of labor supplied. The firms are unwilling to employ every person looking for a job. When real wages are too high or the cost of employing extra workers (the real wage) is higher than the benefit from employing extra workers (the value of output the worker produces). Unemployment rate in Malaysia The economies of a developing country like Malaysia are directly connected with the rate of unemployment. Below is the chart of Malaysia Unemployment Rate for past 10 years, from 1998 until year 2016. (Source: www.tradingeconomics.com | department of Statistic Malaysia) Our country is experiencing a financial crisis in 1997 has recorded an unemployment rate of 2.5% and it can be controlled. The unemployment trend continued from 1997 to 2010. When Malaysia recovered from the financial crisis, the unemployment rate was successfully maintained at less than 4%. On a seasonally adjusted basis, unemployment rate in Malaysia averaged 3.27% from 1998 until 2016, reaching an all-time high of 4.50% in March of 1999 and a record low of 2.50% in 1997. While for recent year of 2016, unemployment rate in Malaysia rose to 3.5% from 3.4% in year of 2015. The number of unemployed persons rose 1.6% from a year earlier to 512,200. At the same time, employment went up by 0.6%, which is about 14mil. Total labour force increased at a slower pace +1% year-on-year to 14.7 million while employment growth moderated slightly to +0.7% year-on-year to 14.2 million.  Cause of Unemployment in Malaysia There are many factors that affect unemployment in Malaysia. We will look into a few factors for discussion. This data has been excerpted from the survey conducted by Jobstreets Malaysia. According to the survey conducted, the highest percentage (64%) that caused unemployment rate in Malaysia is the candidates are asking for unrealistic salary or benefits. It is understandable that these candidates need the salary range because the inflation is considered affecting the people’s daily activities even though the inflation is still bearable in Malaysia. Another issue that enhances the unemployment rate is the poor character, attitude or personality as reported by the survey conducted. This stands out to be the second factor (60%) as many interviewers were very upset with the manners possessed by the candidates during the job interview. Interviewer feels that basic greetings, proper attire and personal hygiene are the most common things that the interviewees lack off. Not to mentioned that some candidates even came late on the assigned interview appointments. This shall not happen if the candidates take it seriously to get the job. As we all know, our education system majors in our national language and English is considered a second language for us. This should not be a reason why we are not proficient in English. English is an international language that is widely communicated among people from different countries, backgrounds, and languages. It is really crucial to master in English language as a medium for us to communicate our ideas, thoughts and what do we want to the people that we deal with. Moreover, Malaysia has many sectors and industries that connect us to the countries all over the world. JobStreet Malaysia manager Chook Yuh Yng added that English is the official medium of communication in 91% of companies in the private sector. But surveys done by JobStreet showed that poor English was always among the top 3 problems employers faced with fresh grads. This has led to certain organizations like the Parent Action Group for Education (PAGE) that we should start teaching science and maths in English again. “Proficiency in any language is about practising. PPSMI created more opportunities for students to practice.” – PAGE chairman Datin Noor Azimah Abdul Rahim, as quoted by The Malaysian Insider From the survey conducted, poor communication skills have stood a 52 percent as the factor that contributes to the unemployment rate. The graduates are lacking of skills and experiences. Nowadays a lot of theoretical subjects have been taught without implementing the practical sides and without skills you have nothing to apply to solve problem efficiently. Poor communication skills hinder the candidate to express themselves to the employer and maybe do not understand what the superior needs. The fifth factor that has contributed to the rate of unemployment is the candidates tend to be choosy about the job or company (38 percent). Most candidates would like to work in a glamour company in the perception that they are more noticeable this way. It is just a self-perception that makes they feel good. Besides that, some candidates want a job location which is nearer from their house which is more convenient to commute. Thus, employer are expecting graduates who with experiences from different areas.  Implications of unemployment Unemployment creates a massive cost for an individual and economy as a whole and is one of the major causes of many social and economic problems. Effects on Individuals Unemployment can lead to stress emotionally and mentally. When a person is unemployed for a long time, they will feel stress because of face financial problem. When stress occurs and lose the self-respect, the individual and the loved ones around them suffer. There would be unnecessary pressure and it may lead to frustration, it will causing them to turn to alcohol or drugs or resort to violence and in turn affect the relationship or lead to an increase in crimes. Effects on Society The impact of unemployment is closely related to poverty, homelessness and family cohesion affects. Unemployment causes the unemployed people faced with financial problem; those individuals will be in poverty and in debts due to the inability to pay up their levies and it would be worse for those having to support their family members. Financial incapability will lead unemployed people would be thinking of possible ways, legally or illegally, to get money in order to support their daily life expenses. This situation increases the crimes rate of country and affects to social security. All of these negative impacts will lead to serious crime rates such as crime violence, prostitution and alcoholism that possibly collapse the family institution. When unemployment rate is high, the crime rate will rise. Effects on the Economy Unemployment means that labour force is not utilized efficiently and it influence and effect economic growth. The cost of unemployment is measured as the goods and services which society could have produced, but did not. The GDP gap is the ways to measure the cost of unemployment. The GDP gap is the difference between potential GDP and actual GDP. Potential GDP is determined by the level of output with full employment, whereas actual GDP is the current level of output. The higher the unemployment rate, the greater the GDP gap. Unemployment is considered as damaging issue to the national economy because high unemployment may reduce the aggregate income and give the negative impact on the government. It will slow down the economic development progress of Malaysia. Unemployment incurs the loss of government revenue obtained through various taxes. Since people are unemployed or earning lesser income, it becomes harder to repay debts. This increases mortgages on housing, instances of bankruptcy and deflation. Slow economic growth and low output might lead to a depression. Reducing unemployment in Malaysia Unemployment can be reduce by implement Demand side policies and supply side policies. Demand Side Policies When there is recession, Government intervention such as cutting interest rate or cutting taxes is needed to boost Aggregate Demands (AD). Aggregate Demand refers to the total demand for final goods and service in an economy at a given time. When AD increases, demand for worker increase and therefore lower unemployment due to recession. Also, with higher aggregate demand and strong economic growth, fewer firms will go bankrupt meaning fewer job losses.  Supply Side Policies Supply side policies are the best measure to overcome imperfections in labor market and reduce unemployment caused by supply side factors. Below is sample of Supply side policies. Education and training The aim is to generate skilled labour in the country and also give the long-term unemployed new skills, which enable them to find jobs in developing industries, e.g. retrain unemployed steel workers to have basic I.T. skills that help them find work in the service sector. Increase Trade among Countries Trade is one of the factors to reduce the unemployment as the working opportunity is created when two countries trade. Increasing of trade internationally meaning there will be an up surging of export. Thus, domestic supply of goods is needed to meet the international demand. From that, the people have an opportunity to produce and manufacture new product for the trade among the countries. Encourage Entrepreneurship Entrepreneurship and self-employment among youth, and the creation of small and medium enterprises is suggested as one of the major sources of employment opportunities for young people. On one hand, higher rates of entrepreneurial activities may reduce unemployment rates through self-employment and the consequent creation of new jobs. Government Spending Government needs to build and construct many of the facilities in the country for the society's benefits. Government needs to spend on construction of big projects; this injection of money will help to create the job opportunity for the labor in the country. Example: Kuala Lumpur-Singapore High Speed Rail project.  Increase Foreign Direct Investments (FDI) Investment, indeed, brings a lot of job opportunity in the country. Whenever foreign direct investments (FDI) invest in the country, there will be a lot of industry set up for production and administration. Thus labor demand will be increased due to the investment. It then decreases a certain amount of unemployed. Conclusion Malaysia unemployment is considered as starkly and positively fluctuating, the unemployment has been relatively stable after the financial crisis. It is normal for a healthier developing country to have unemployment; nevertheless, as known that unemployment is considered as damaging issue to the national economy because high unemployment may reduce the aggregate income and give the negative impact on the economy. It will slow down the economic development progress of Malaysia. The government of Malaysia should provide various solutions, policies and infrastructures to address the problem of unemployment and stimulate the national economy as well as reduce the poverty gap between Malaysian citizens. Reference Criterion Conferences. 2017. Investing in our Youth: 10 ways to Reduce Youth Unemployment. [ONLINE] Available at:  https://www.criterionconferences.com/blog/social-services/investing-youth-10-ways-reduce-youth-unemployment. [Accessed 6 March 2017]. Malaysia Unemployment Rate | 1998-2017 | Data | Chart | Calendar | Forecast . 2017. Malaysia Unemployment Rate | 1998-2017 | Data | Chart | Calendar | Forecast . [ONLINE] Available at:  http://www.tradingeconomics.com/malaysia/unemployment-rate. [Accessed 6 March 2017]. D. Karunagaran. (2000) Principles of Economics Third Edition– Chapter14 Marcoeconomic Problems Page303-306. Firmansyah Shidiq Wardhana's Site. 2017. UNEMPLOYMENT DYNAMIC IN MALAYSIA: MACROECONOMICS PAPER | Firmansyah Shidiq Wardhana's Site. 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