A PRELIMINARY STUDY ON GRADUATE EMPLOYABILITY AMONG ISLAMIC BANKING AND FINANCE GRADUATES

THE ROLE OF CAREEREDGE AND DIGITAL LITERACY

Abstract

The evolution of technology has meaningfully transformed the skill demands of the contemporary workforce. In Malaysia, the last few years have highlighted an increasing concern regarding the underemployment of graduates, particularly among Islamic Banking and Finance (IBF), who find themselves in semi-skilled or clerical positions despite their qualifications. This misalignment shows a significant challenge to the nation's economic goals. Although there is extensive research on employability, there has been an inadequate focus on IBF graduates regarding digital transformation. This preliminary study examines the relationships between digital literacy (digital knowledge, competence, and usage), CareerEDGE predictors (career development learning, experience, degree subject knowledge, generic skills, and emotional intelligence), and employability, with self-efficacy as a mediating variable. A structured questionnaire was distributed, and a pilot test with 31 recent IBF graduates was carried out. Using SPSS version 27, the evaluation of internal consistency among items was conducted using Cronbach’s Alpha, and Pearson correlation analysis was utilised to examine discriminant validity and relationships at the construct level. The results demonstrate strong reliability and satisfactory validity across all constructs. Significant positive correlations were observed between the independent variables and employability, with self-efficacy showing a substantial mediating effect. The findings shed light on the employability challenges faced by IBF graduates and provide practical suggestions for policymakers, educators, and industry stakeholders to address skill gaps and improve graduate employability in Malaysia's digital economy.