Job hopping among young employees signals deeper labour market issues, says PNB Research Institute

Job hopping among younger employees is often viewed as a sign of declining loyalty or a poor work ethic. However, new research from the PNB Research Institute (PNBRI) suggests that frequent job changes may instead reflect structural weaknesses in the labour market, raising important questions for employers seeking to attract and retain talent.

In its latest report, Job Hopping and Early Career Instability, PNBRI argues that rising levels of skill underemployment, stagnant entry-level wages, and limited opportunities for career progression are driving many young employees to switch employers. Rather than a behavioural problem, the institute describes job hopping as a “structural signal” that organisations and policymakers should pay closer attention to.

The findings come amid growing concerns about workforce mobility in Malaysia. According to data cited in the report, 35.2% of employees in Malaysia planned to change jobs in 2025, while 18% ultimately did so, both figures representing increases from the previous year. The Malaysian Employers Federation has also reported that four in five young employees expect to leave their jobs within a year, with the highest turnover rates among employees in their 20s.

PNBRI challenges the perception that younger generations are uniquely prone to job hopping. The report notes that frequent job changes have historically been common during the early stages of many careers, regardless of generation. Instead, the research points to career stage and labour market conditions as stronger influences on mobility than age alone.

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For HR leaders, the report highlights a critical issue: the quality of early-career employment experiences. PNBRI found that many young employees enter roles that do not fully utilise their qualifications, creating pressure to seek alternative opportunities. According to the institute, 74.3% of employees aged 15-24 were employed in jobs below their qualification level in Q3 2025, significantly higher than the national average of 35.5%. Among employees aged 25-34, skill-related underemployment remained elevated at 41%.

While moderate job switching can lead to better career matches and higher earnings, the report warns that excessive job switching may have long-term consequences. Frequent transitions can disrupt skill development, reduce opportunities to accumulate meaningful experience, and ultimately flatten wage progression over time. Early-career instability, the researchers argue, can therefore create lasting disadvantages for both employees and employers.

The report also notes that digital job platforms, salary transparency tools, and professional networking sites have made it easier than ever for employees to identify new opportunities and move between organisations. As a result, employers face increasing competition for talent and can no longer rely solely on traditional expectations of loyalty.

To address the issue, PNBRI recommends a three-pronged approach: improving wage and job-quality foundations, strengthening school-to-work pathways through work-based learning and employer partnerships, and expanding lifelong learning opportunities to support career progression without requiring frequent job changes.