Factors Of Skilled Labour Shortage Problem Economics

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Workers can acknowledge as skilled workers merely after they obtained accreditation of CIDB ( Construction Industry Development Board ) . In order to obtain accreditation by CIDB, the worker will hold to go through the trial or classs that will be organized by some authorised organic structures, such as ABM ( Akademi Binaan Malaysia ) and so forth.

The skilled labour deficit job has been existed in the building industry since 1970 ‘s. This job had become serious particularly when the building industry growing up. This job will so direct or indirectly give rise to many other jobs. It is needed to minimise the negative impacts that cause by the skilled labour deficit job since this job is the root of other jobs.

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Factors of Skilled Labour Shortage Problem

The grounds that caused skilled labour deficit job listed as below. Those causes are harmonizing to the facts that reported in the Master Builders Association Malaysia study and some resources come from online newspapers, on-line diary and thesis.

Younger Generation Unwilling to Take Part in Industry

Poor participant from local young person is one of the factors of skilled labour deficit job ( Shiadri binti Salleh @ Aman, 2008 ) . Harmonizing to New Straits Times, the overall of the new consumption pupils, there are merely five to eight per centum of pupils who take up accomplishments classs. Compare the development states, there is a big difference where could be found between 20 to 25 per centum of pupils inscribing in accomplishments classs ( Othman, 2012 ) .

Harmonizing to Media study from Secretariat of Ministry of Home Affairs ( 2011 ) says that, there are about 2.2 per centum of entire foreign workers registered to work in the building industry which are 6233 foreign worker ( Adam, 2011 ) . The big proportion of imported labor on building is an grounds of the fact that the Malayan young persons are non interested in fall ining the industry. Harmonizing to The Star, there is a ‘three D ‘ syndrome attached to the industry, which are soiled, unsafe and hard ( Seong, 2010 ) . This makes the building sector becomes the least attractive sector of the Malayan population when compared with others.

Wagess Problem

CURT ( 2001 ) survey and pointed to comparatively low rewards as a major cause for the building labor deficit. In the building industry, the skilled labor ‘s work can be consider as an unstable work particularly in term of income. With the indirect unemployement, which allow chief contractor or sub-contractor to derive some benefit from it such as they can avoid big disbursals on lasting worker and administrative forces ( Shazwani binti Ahmad Zaki, Sarajul Fikri Mohamed, Zakaria Mohd Yusof, 2011 ) . This would take to the skilled labor will merely acquire wage if they have work for that peculiar twenty-four hours. Besides that, hapless paymaster ( MBAM, 2007 ) is one of the issues in the building industry. Unfortunately, by the nature of the building industry itself, it does non guarantee that the skilled labor can hold continuity of work. Of class, this state of affairs will do the skilled labors in the building industry do non hold a stable income.

 Working Environment

Local people do non interested in the building industry chiefly because of the hapless on the job environment at building worksites in term of safety and wellness ( Shazwani binti Ahmad Zaki, Sarajul Fikri Mohamed, Zakaria Mohd Yusof, 2011 ) . Furthermore, the building activities frequently take topographic point at out-of-door hazardous environment that is non safe, healthy and under highly hot conditions. Harmonizing to the Human Resources Minister Datuk Seri Dr S. Subramaniam, building sector has the highest figure of accidents recorded at work topographic point.

Form to the study of accident in 2012 from Department of Occupational Safety and Health ( DOSH ) , the occupational accidents by the sector for the class of decease 2012 shows that, there are 67 victims dead under the building class ( Figure 2.2.3 ) . This is non included for the figure of victims under the class of non-permanent disablement and lasting disablement. Besides that, they believe there are many other accidents were non reported to the section. Most of the accidents on site were contribute by the foreign labor who did non go to formal preparation. Furthermore, this had caused the image of the building sector become hapless and unattractive to the populace.


Economic drama an of import function in the demand for skilled labor. During the rapid development in Malayan economic system in the last decennary increased building undertaking which given the chance for people to work ( Shazwani binti Ahmad Zaki, Sarajul Fikri Mohamed, Zakaria Mohd Yusof, 2011 ) . Harmonizing to Mr. Lau Mun Cheong ( Secretary General, MBAM ) in Master Builders Journal ( 2nd Quarter 1997 ) , he said that there are a batch of competitions among industries for available work force and there is an increasing of demand due to the rapid gait of development. This is because during the good clip a batch of development will be transporting out at the same clip, hence the demand for the skilled labor is decidedly be higher. In that clip, deficit of skilled labor job decidedly will be happen since we have limited figure of skilled labor in Malaysia.

During the economic recession, many skilled labors will switched to other occupations due to the lag of the development. Furthermore, during that clip the building industry decidedly could non vouch that the skilled labour can hold a stable income. Many of them might migrate to foreign states that required skilled labors in their building industries. This state of affairs resulted in loss of skilled labor and therefore the deficits job will go on when the economic system is retrieving. When the economic system is retrieving, we may confront the trouble in using the skilled labour since bulk of them are already altering to the other on the job line or migrate to the other states. Meaning to state, they already have a better occupation that can guarantee their income and they likely might non desire to joint the building line in Malaysia once more. This is because the line can non give them a good chance.

Impacts of Skilled Labour Shortage to the Construction Industry

The skilled labour deficit job has straight or indirectly brings a batch of negative impacts to the building industry. Basically, the impacts that brings by the skilled labour deficit job will take to the terminal consequences of impacting the building cost and quality. The impacts of skilled labour deficit job to the building industry are listed as below. Those impacts are based on the resources from the newspaper, diary, building companies and etc.

Quality of the Work Affected

Andrew R.J. Dainty, Stephen G. Ison & A ; Geoffrey H. Briscoe ( 2005 ) has identified the job of hapless quality of accomplishments as being of a critical importance to the building industry. Due to the deficit of skilled labor, the contractor may use the unskilled labor in order for them to go on the plants on site. This is due to the contractor needs to finish the undertaking even though they can non acquire the skilled labor because detaining the undertaking will take to payment of the Liquidated Damages. As we know, those unskilled labourers that being employed are non an expert, therefore the quality of the work will decidedly be affected.

Gerskup ( 2010 ) stated that hapless craft is one of the factors will lend to the faulty plants. Harmonizing to the Works Minister Datuk Seri S. Samy Vellu said to the SUN newspaper at 23thMay1999, the inaccessibility of the skilled labor was the chief ground behind the cheapjack craft at the RM195 1000000s naval recruit-training Centre in Tanjung Pengelih. He added that the contractor would necessitate to bear the cost of fixs the cheapjack work. When the work produced by the unskilled labor is ever confronting defects by the consumer, chief contractor demand to pass excess clip and cost for the cares of plants.

Increase in Construction Cost

In order to pull the skilled workers by raising the rewards, this will increase the building cost ( Morley Gunderson, p. 2001 ) . It is a normal instance for some resources to be in high cost when the supply is less. Since the skilled labor is besides one of the work force resources, hence deficit of skilled labor will straight increase the rewards and therefore convey to the terminal consequence of addition the building cost.

Sometimes this state of affairs will duplicate up the original building cost for a peculiar portion due to the incorrect or bad quality works when it is instruct by the Architect to retrace that peculiar incorrect or bad quality plants.

Construction Delay

Harmonizing to research by Wa’el Alaghbari, Mohd. Razali A. Kadir, Azizah Salim and Ernawati stated that, deficit of skilled labor is one of the factors doing hold of constructing building undertaking in Malaysia Since skilled labor is one of the of import resources that required for the building industry, hence deficiency of them will decidedly take to the slow down of development and building advancement.

The survey conducted by Yau ( 2007 ) wrote that, labour supply in Malaysia ranked figure seven out of 20 eight causes of building hold. This survey shows that the major cause of hold due to the building industry is employment of illegal foreign labor. Illegal workers will be detained by Malaysia in-migration functionaries and therefore take to holds in building due to shortage of labor.

Possible Solution to Get the better of the deficit of skilled labor

Forces in the building industry should fix some solutions in order to minimise the negative impacts that caused by the skilled labour deficit job. They are many types of possible redress methods for the skilled labour deficit job. Each of that has different manner and besides different grade of effectivity. The possible redress methods are listed as below:

Updated Construction Method

Harmonizing to Gruneberg ( 1997 ) wrote that with new engineering slope to cut down the demand for labour because frequently new innovations and inventions are labour salvaging. The productiveness will be improved by presenting the advanced engineering method compared into the traditional building method. Harmonizing The Star at 4 February 2012 wrote that, MBAM suggest the authorities to cut down the import responsibility and gross revenues revenue enhancement for heavy machinery because with the usage of new and bigger capacity machinery will increase the productiveness and cut down the foreign workers being used.

There are many types of progress engineering being used for the building industry, such as industrial edifice system. Gruneberg ( 1997 ) noted that with the better usage of prefabricated constituents will rush up the building procedure and cut down the usage of labor. By bettering the productiveness decidedly the work force resources require will be cut down. This is the ground why these updates the building method can be say as the redress method for the skilled labour deficit job.

Extension Retirement Age

Harmonizing to The Star 18 September, 2010 wrote that, Mr Chua suggested the authorities to widen the retirement age of Malaysians. Mr Kwan estimated that seven old ages from now, there are 35.1 % of local building worker will make the age of 50. Due to this, Mr Chua would wish to indicate out the retirement age could be raised to 62 or 65 as practiced in some developed state. Retaining the older skilled labor will assist a batch in the deficit of skilled labors because they can oversee the younger coevals skilled labors and manage to go through their accomplishments to the younger coevals in the building industry.

Recruitment and Retention

Harmonizing to Smart Market Report wrote that, with better benefits, high wages and greater occupation security will pulling new employees and retain the skilled labor. Harmonizing to The Competitive Position of London ( 2008 ) , compared to others prevailing fiscal centres, London scored highest in skilled worker handiness. This is due to employees at here are extremely motivated and willing to work long hr which is they are paid so good. In order to enroll or retention the skilled labor in the market, the employer need to their best to pull them by provide more high wage and better benefit. The survey found that skilled labors largely concern with the wage and occupation security ( Richard L. Tucker, Carl T.Haas, Robert W.Glover, Christine Alemany, Lynn Ann Carley, Ana Maria Rodfriguez & A ; David Shield, P.E, 1993 )

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