Malaysia is seeing a sharp rise in job-switching among younger workers, with employers warning that mismatched expectations, limited career progression, and a growing demand for flexibility are driving high attrition across key sectors.The Malaysian Employers Federation (MEF) said recent recruitment data shows that 81% of young workers intend to leave their jobs within a year, highlighting strong labour mobility among Gen Z and millennials. MEF president Datuk Dr Syed Hussain Syed Husman said this pattern has become increasingly common in the Malaysian labour market, particularly among early-career professionals.
According to MEF, younger employees are entering the workforce with heightened expectations around rapid career advancement, meaningful work, and flexible working arrangements. However, many face a gap between these expectations and workplace realities. Syed Hussain attributed the trend to limited career progression opportunities, slower skills development, workplace culture mismatches, and a stronger emphasis on work-life balance and flexibility.
Industries most affected by frequent job changes include Digital and Technology, Engineering, and Sales and Marketing. MEF also noted that resignations tend to spike after the year-end bonus period, suggesting that compensation cycles play a role in resignation timing.
These findings align with separate research from Reeracoen Malaysia, which points to intensifying labour mobility across the workforce. Its latest report found that 92% of Malaysian professionals are considering a job change, while 76% are already actively seeking new roles.Compensation remains a major driver. Less than half of employees reported receiving pay increases of between 0.1% and 4.9%, while 38% said they received bonuses of less than one month’s salary. Higher salary expectations were cited as the top reason for job switching.
Recruitment practices are also emerging as a friction point. Jobseekers reported being discouraged by slow employer communication, cited by 54% of respondents, and lengthy application processes, flagged by 40%.
Reeracoen Malaysia Country Manager Yohei Yagi said Malaysian jobseekers are now highly active and selective, warning that slow or unclear hiring processes can quickly cost employers strong candidates. He added that organisations that move faster, communicate clearly, and offer competitive rewards will be better positioned to attract and retain talent in 2025.