Sabah’s labour market is experiencing a paradox where job vacancies keep rising while fewer positions are being filled, because many people have stopped looking for work or left the state altogether, not because the economy is creating good jobs. This reflects a structural breakdown in how jobs are created, matched, and supported by education and infrastructure, rather than an individual failure of workers. dailyexpress
A labour market in contradiction
Between 2022 and 2024, reported vacancies in Sabah increased from 98,523 to 114,794, yet successful placements dropped from 19,297 to 11,327, showing that the matching system has grown less effective over time. By August 2025, there were 76,408 vacancies but only 6,196 successful placements, meaning just about 8.1% of advertised jobs were filled and confirming that less than 1 in 10 vacancies is translating into employment. papers.ssrn
At the same time, official labour force data and DOSM’s “Job Seekers’ Aspirations in Sabah” study indicate that many Sabahans—especially the young and educated—are withdrawing from the formal labour market or migrating out of the state, which mechanically lowers the unemployment rate while masking deep distress. This explains how job vacancies can coexist with a declining unemployment rate: the number of active job seekers shrinks, rather than more people actually finding decent work. statistics
https://www.dailyexpress.com.my/news/272094/why-jobs-in-sabah-remain-vacant-despite-high-demand/
The quality trap: jobs nobody wants
Evidence from DOSM and qualitative labour market analysis shows that many available jobs in Sabah are low-wage, insecure, and concentrated in labour‑intensive sectors such as plantations, basic tourism, and low-end services. DOSM’s survey highlights that job seekers consistently raise wage and salary concerns, with many stating that salaries do not match their qualifications or cost of living, reinforcing the perception that local jobs are dead ends rather than pathways to mobility. nhrc
This pushes Sabahans to “vote with their feet”: the share of interstate migration from Sabah rose from 13.1% in 2020 to 41.9% in 2022, and roughly 200,000 Sabahans are estimated to be working in Peninsular Malaysia, often for better pay and career prospects. A recent study also found many Sabah job seekers are willing to relocate domestically or abroad for salaries in the RM2,000–RM4,999 range and above RM5,000, underscoring that low local pay is a central driver of this silent exodus. nst
https://www.statistics.gov.my/portal-main/downloads-log?id=9242
The skills mismatch: aspirations vs reality
DOSM’s job seeker study for Sabah shows a clear mismatch between the academic qualifications of job seekers—where over 70% surveyed had higher education—and the types of vacancies available, which are often low‑skill or unrelated to their fields. Employers, meanwhile, report difficulty finding candidates with the right technical, digital, and soft skills, and often label local workers as “unemployable” or “not workplace‑ready”, even when vacancies stay open for long periods. dailyexpress
This mismatch is especially acute for young graduates, who are qualified for roles in higher value sectors that are either underdeveloped or absent in Sabah, leading them to feel overqualified and underwhelmed by local offers. As of August 2025, the fact that only 8.1% of vacancies resulted in placements is a numerical reflection of this mutual frustration: jobs exist on paper, but they are either unattractive to candidates or unattractable to employers once they see the applicant pool. dailyexpress
An education system out of sync
Multiple reports point to a sharp rural‑urban divide in access to quality schooling, digital infrastructure, and experienced teachers in Sabah, leaving many rural students behind in basic competencies and digital skills. Poor connectivity and under‑resourced schools limit exposure to STEM and modern learning tools, weakening the pipeline of talent needed for higher‑value industries. statistics
On top of this, Technical and Vocational Education and Training (TVET) remains stigmatized as a “second choice,” even though policy documents and labour market reviews repeatedly list TVET fields as critical for Sabah’s development. Training that does exist is often fragmented, small‑scale, or misaligned with emerging green and digital sectors, meaning graduates leave with paper qualifications that do not translate smoothly into the competencies employers need. sabah
https://storage.dosm.gov.my/analysis/lmr_2025-q1_en.pdf
Structural roots: low‑value economy and cheap labour
Analyses of Sabah’s economic structure emphasize that the state remains heavily dependent on primary commodities and low‑value tourism, which generate many low‑skill jobs but little wage growth or productivity upgrading. Chronic bottlenecks in electricity, water, logistics, and digital connectivity discourage high‑tech or higher‑value investors who might otherwise create better jobs, keeping Sabah stuck in a low‑value, low‑wage cycle. sabah
Historically, the ready availability of low‑cost foreign labour has further reduced the incentive for employers to automate, invest in technology, or systematically train local workers. This model keeps labour costs low in the short term but entrenches a structural equilibrium where local workers see little reason to stay, and firms see little reason to upgrade, deepening the divide between vacancies and meaningful careers. nhrc
Shared responsibility and policy gaps
State blueprints such as Sabah Maju Jaya outline ambitions to transform the economy and improve infrastructure, but implementation has lagged, particularly in addressing basic utilities and connectivity that investors repeatedly cite as constraints. This implementation gap means the narrative of industrial upgrading and digitalization has not yet translated into large‑scale, high‑quality job creation for Sabahans. papers.ssrn
Employers and industry bodies frequently highlight skill shortages but often underinvest in structured training, apprenticeships, and wage progression, treating talent as something to be “found” rather than developed. Education providers, for their part, continue to emphasize traditional academic pathways and qualifications, with slow adaptation to industry‑driven curricula and co‑designed programmes that would more effectively bridge school, TVET, and work. dosm
https://papers.ssrn.com/sol3/Delivery.cfm/5384232.pdf?abstractid=5384232
A vicious, self‑reinforcing cycle
The current system creates a loop in which employers justify low wages and limited investment by pointing to perceived skill gaps, while workers respond by exiting the local labour market or migrating to other states where pay and prospects are better. Investors, in turn, cite both infrastructure weaknesses and a supposedly “unskilled” workforce as reasons to look elsewhere, further delaying the arrival of higher‑value industries that could change incentives on both sides. nst
Breaking this cycle will require coordinated action: upgrading physical and digital infrastructure, re‑engineering education and TVET around real industry needs, and incentivizing firms to invest in technology and people rather than relying on cheap, replaceable labour. Without such a shift, the pattern identified in 2022–2025—rising vacancies, shrinking matches, and a quiet exodus of talent—will persist as a silent indictment of Sabah’s unfulfilled promise of shared prosperity. dailyexpress
Ramli Amir (ramgold@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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