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In recent weeks, global developments have reminded us how interconnected the world economy has become. Rising geopolitical tensions in the Middle East have raised concerns about higher oil prices, inflation and the stability of financial markets.
In Malaysia, political discussion has also shifted somewhat. Instead of the usual debates centred on race and religion, public conversations have increasingly focused on economic issues such as the rising cost of living, investment and economic reforms.
In this environment, it is timely to reflect on another important issue affecting society: the changing nature of employment.
In the past, the role of policymakers in the labour market was relatively clear. Governments closely monitored employment and unemployment statistics, and economic policy was largely designed to create jobs.
New industries were encouraged, businesses were supported to expand, and infrastructure projects were undertaken to generate employment opportunities for the people. The goal was straightforward: ensure that there were enough jobs so that most citizens could earn a living.
However, the nature of work has changed significantly over time.
Many decades ago, most people worked in agriculture. Farmers and rural families relied on the land and seasonal harvests for their income. Later, during the period of industrialisation, many workers moved into factories and manufacturing industries. These jobs were usually stable, with fixed working hours and predictable wages.
In the mid-20th century, employment expanded further into government services and professional sectors such as teaching, engineering and accounting. Many workers joined large organisations where they could expect long-term careers, regular promotions and retirement benefits.
From the 1980s onwards, the economy gradually shifted towards services and knowledge-based industries. Jobs increasingly required education, technical knowledge and specialised skills. In recent years, digital technology has brought another major transformation.
Today, many people work through online platforms, remote arrangements or short-term projects. Freelancers, ride-hailing drivers, online sellers and digital content creators are examples of this new type of employment.
In this new environment, work is no longer defined simply by a fixed job title. Instead, work is increasingly based on skills. Employers often hire workers for specific tasks or projects rather than for long-term employment. For example, a company may hire a software developer for a six-month project rather than employing the person permanently. Similarly, a graphic designer might work for several clients at the same time instead of being attached to one organisation.
Because of this change, employment has become more flexible but also more uncertain. Workers need to constantly upgrade their skills to stay relevant.
At the same time, risks that were once shared by companies are increasingly borne by individuals. Workers may face irregular income, limited benefits and less predictable career paths.
These changes have important social consequences, especially for younger generations. Many millennials and members of Generation Z entered the workforce at a time when these structural shifts were already taking place. Unlike previous generations, they did not experience a labour market where stable jobs were the norm.
As a result, many young workers face financial uncertainty. For example, a young graduate may start with a short-term contract rather than a permanent position. Without stable income, it becomes difficult to plan for major life decisions such as buying a home, getting married or starting a family. Some young workers also feel constant pressure to improve their skills in order to remain employable.
One issue that frequently concerns employers is the phenomenon of job hopping among young workers. Many companies complain that younger employees leave their jobs after only a short time. Employers worry that this makes it difficult to develop experienced staff or justify investments in training.
However, job hopping is often a practical response to the current labour market. Young workers may move from one job to another because they are searching for better salaries, improved working conditions or opportunities for career growth. For instance, a young employee who receives minimal training and slow salary increases may feel that changing employers is the fastest way to improve his or her prospects.
Another factor influencing job mobility is the search for better work-life balance. Many younger workers value flexible working arrangements such as hybrid work or remote work. If a company cannot offer these options, employees may look elsewhere.
At the same time, many businesses remain hesitant to replace expatriate workers with local employees. Employers sometimes believe that experienced expatriates provide higher productivity or specialised skills.
As a result, companies may continue relying on expatriates rather than investing in the training of local workers. Ironically, the fear that young employees will leave quickly also discourages firms from providing the training that could help build strong local talent. This creates a cycle where companies hesitate to train workers, while workers leave because they see limited opportunities for development.
It is unrealistic to expect the labour market to solve these problems on its own. Businesses naturally aim to reduce costs and maintain flexibility. Individual workers, however, cannot easily protect themselves from unstable income or negotiate better conditions on their own.
Without support, it becomes difficult for young people to achieve financial stability. Therefore, governments have an important role to play in adapting labour policies to the changing nature of work. Instead of focusing only on creating jobs, policymakers must increasingly focus on ensuring secure livelihoods.
One possible approach is to introduce premium wages for temporary or contract work. Since short-term jobs involve greater uncertainty, workers could receive higher pay to compensate for the lack of stability and benefits. This would encourage companies to treat contract workers more fairly while discouraging excessive use of short-term employment.
Another important policy is the creation of portable benefits. In the traditional system, benefits such as healthcare, retirement savings and training opportunities are tied to a specific employer. But if workers move between different jobs more frequently, these benefits should follow the worker rather than the employer. Portable benefits would allow individuals to maintain their social protection even when changing jobs.
Governments can also strengthen rules governing employment contracts. Clear standards regarding contract duration, termination conditions and fair compensation would protect workers while still allowing flexibility for businesses.
In addition, skills development must become a national priority. Continuous learning and training programmes can help workers adapt to technological change and remain competitive in the labour market. Public investment in vocational training, digital skills and mid-career education will be increasingly important.
Some initiatives in Malaysia already point in this direction. For example, the MyFutureJobs Career Exploration Centre at Nu Sentral in Kuala Lumpur was recently introduced as an immersive hub where job seekers can explore career options and match their qualifications with available opportunities.
Such programmes are especially important given that nearly two million Malaysians are currently classified as underemployed. This means many people are working in jobs that do not fully utilise their skills, representing a loss of potential for both individuals and the economy.
Ultimately, the challenge facing modern economies is not simply about creating more jobs. It is about building a system where people can earn stable livelihoods even in a rapidly changing labour market. Governments must help ensure that workers experience less income volatility, can transition more easily between jobs and feel confident enough to invest in their skills and future.
When young people feel secure about their economic prospects, they are more likely to plan for housing, family life and long-term careers. In this way, adapting labour policies to the changing nature of employment is not only an economic necessity but also an essential step toward building a more stable and prosperous society.
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