Long-term benefits of job vacancy reporting

A PROPOSED amendment to the Employment Insurance System Act 2017 (Act 800) seeks to strengthen Malaysia’s social protection system and enhance job placement services through the Social Security Organisation (PERKESO).

One of the most significant changes is the introduction of Section 45F, which requires employers to notify PERKESO of job vacancies prior to recruitment.

Mandatory vacancy reporting generates clear benefits for the labour market by improving information availability for both employers and job seekers, enabling labour supply and demand to be matched more efficiently.

Workers are more likely to be placed in positions aligned with their skills while employers benefit from improved recruitment outcomes.

The proposed reform is consistent with global best practices for strengthening the scope and role of public employment services (PES). Countries with robust PES systems, such as the Nordic economies, Germany and South Korea, rely on vacancy reporting mechanisms.

In Malaysia, the public job-brokering function falls under the Human Resources Ministry and is operationalised by PERKESO through the MYFutureJobs platform.

Mandatory reporting enhances labour market transparency by providing the government with near real-time visibility of labour demand, improving nationwide workforce planning. At the same time, job seekers gain access to so-called “hidden vacancies” that would not be publicly advertised.

When vacancies are systematically listed on MYFutureJobs, job-matching efficiency improves by expanding access to opportunities, shortening unemployment duration and reducing recruitment costs for employers.

The system is particularly beneficial for low-income workers and those in remote areas who often lack access to informal recruitment networks.

Comprehensive vacancy data supports evidence-based manpower planning, allowing the government to identify skill shortages and surpluses by sector, region and occupation. This information can be used to better align technical and vocational education and training (TVET) programmes and higher education pathways with labour market needs and forecast workforce requirements across key industries as well.

The vacancy reporting requirement also strengthens employment of locals first by ensuring that Malaysians are given priority before employers turn to foreign labour. This principle is already imposed in foreign worker recruitment through MYFutureJobs. Extending it to all vacancies will enhance policy coherence.

More broadly, mandatory reporting supports anti-fraud measures, integrity in foreign labour recruitment and compliance with labour standards. It can help detect practices such as repeated claims that “no suitable local candidate is available”, illegal outsourcing arrangements, unlicensed labour hiring activities or fictitious job postings used to facilitate visa abuse. It may also signal abnormal vacancy patterns associated with exploitative employment practices.

Requiring vacancies to be published on a government-monitored platform also improves oversight of recruitment practices. Discriminatory or opaque criteria, such as bias based on gender, age or ethnicity, can be more readily identified. Job descriptions and wage offers become more transparent while reliance on informal, word-of-mouth recruitment that may exclude vulnerable groups is reduced.

Although employers may initially perceive vacancy reporting as an administrative burden, the long-term benefits are substantial.

Overall, the introduction of mandatory job vacancy reporting under Section 45F represents a strategic reform that will strengthen Malaysia’s labour market institutions.

DR ZULKIPLY OMAR

Senior research fellow

Social Well-being Research Centre

Universiti Malaya