KUALA LUMPUR (May 28): Job hopping among young Malaysians is mainly caused by poor job quality, including underemployment and low starting wages, and not changing work ethics, according to PNB Research Institute (PNBRI).

A PNBRI article titled “Job Hopping And Early Career Instability” found that many job changes are due to low pay, limited career growth, and jobs that do not match qualifications. 

In the third quarter of 2025, 74.3% of workers aged 15-24 were in roles below their qualification level, much higher than the national average of 35.5%, and this gap has been widening since 2017. Among workers aged 25–34 (older Gen Z and younger Millennials), skill-related underemployment is still high at 41%, above the national average, but lower than for the youngest group. PNBRI said this suggests that underemployment tends to decrease as workers get older.

It added that it also reflects a long-term structural issue, as fewer skilled jobs are being created while more graduates enter the workforce.

PNBRI also noted that real entry-level wages have fallen over time, dropping by 10% for degree holders and 28% for master’s degree holders between 1997 and 2022.

The estimated minimum cost of living in Kuala Lumpur is about RM2,400 for a single person and RM3,970 for a household, while some government-linked companies set the living wage at RM3,100.

However, most graduates earn below these levels. About 66.3% of degree holders and 93.1% of diploma holders earn less than RM3,000.

Even more concerning, 30.6% of degree holders and 66.3% of diploma holders earn below RM2,000, which is far under the basic living cost.

Although some graduates do progress over time, many still begin their careers in low-paying jobs despite their qualifications. As a result, young workers often change jobs out of necessity to find better pay and opportunities, rather than personal preference.

“Too often, young workers are labelled as disloyal or impatient. But when wages are low, jobs do not match qualifications, and career progression is unclear, moving between jobs becomes a rational response, not a behavioural problem,” Dr Mohd Amirul Rafiq Abu Rahim, one of the authors of the report, said in a statement. Other authors of the article are Anis Farhana Amran, and Adiba Mohamed Azman.

PNBRI also highlighted that digital platforms, salary transparency tools, and professional networks have made it easier for workers to find and switch jobs quickly.

The article said job changes are normal early in careers, but happen more often when jobs are unstable and lack clear career growth. With lower wages, many workers in jobs below their qualifications, and unclear career paths, switching jobs can be a reasonable choice. The main issue is whether early-career jobs are good enough for young people to stay.

The institute warned that unstable early careers can lead to long-term effects such as slower skill development and weaker earnings growth.

To address this, PNBRI called for three core pillars to be included in policy: strengthening wage and job quality foundations to support stable early-career pathways; strengthening school-to-work and job matching through work-based learning and structure; and strengthening lifelong learning systems to support career growth without frequent job changes.