This paper studies the effect of employment generated by government spending on education. This spending is important role to increase the number of skilled labour, job creation and fulfil labour requirement in economic sectors. At the same time, education also considered as human capital investment to increase the productivity of labour and reduce economic problems such as unemployment and poverty. In other words, education is considered as source of wealth in society. Based on finding in this paper, suggest that the study about impact of government spending on education and employment is needed. It is purposely, to know how far the education can give effect on employment in economic sector in Malaysia
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