Younger workers in Malaysia saw their income grow at less than three-fourths of the rate their older counterparts enjoyed over the last decade, according to the World Bank’s latest edition of its Malaysia Economic Monitor.

Median employment income for younger workers aged between 20 and 29 grew at 2.4 percent per annum between 2014 and 2016, whereas older workers aged between 40 to 49 saw income growth of 3.9 percent over the same period. In cash terms, this means that older workers were earning RM1,197 (US$287) per month more than younger workers in 2016. This difference is equivalent to more than half the median salary in Malaysia.

The wage stagnation is significantly worse for young people without tertiary education. The report observes: “Within each age group, median employment income for those who have completed post-secondary education is at least double that of those who have only completed secondary education.”

While the World Bank does not speculate on the reason for the large difference, companies on the ground have varying theories.

On the one hand, recruitment firms have suggested that the gap is partially caused by younger workers’ lack of relevant skills as the Malaysian economy, like its counterparts across ASEAN, becomes increasingly heavily digitised.

On the other hand, even degree holders go unemployed or underemployed, a situation which Bank Negara has pinned on a lack of high-skilled job creation: the number of jobs available is vastly mismatched to the number of graduates entering the workforce. Out of 1.47 million job vacancies, 86.9 percent are reportedly for low-skilled jobs, and only 4.7 percent require any tertiary qualifications.