Malaysia’s unemployment down to lowest level since start of Covid-19 pandemic

[KUALA LUMPUR] Malaysia’s unemployment rate stayed at 3.6 per cent in October – the same as the previous month – with the Department of Statistics Malaysia (DOSM) noting that this reflects the country’s “steady economic fundamentals”.

The number of unemployed people fell to 602,000, which is the lowest since the start of the Covid-19 pandemic and down slightly from 605,000 in September, according to fresh data released by DOSM on Friday (Dec 9).

Overall, the labour force increased by 0.2 per cent to almost 16.7 million, from 16.6 million in September. The participation rate for Malaysia’s labour force in October stood at 69.7 per cent.

Said DOSM chief statistician Mohd Uzir Mahidin said: “The optimistic labour force performance in October 2022 reflected the nation’s steady economic fundamentals, resulting from continuously growing economic and social activities.”

As for the number of employed people, this figure continued to go up. There was a month-on-month rise of 0.2 per cent to nearly 16.1 million, slightly higher than the 16 million in September. In October, the employment-to-population ratio, which indicates the ability of an economy to create employment, remained unchanged at 67.2 per cent. 

Except for the mining and quarrying sector, all economic sectors including services, manufacturing, construction and agriculture sectors have seen increased hirings. The number of employed people in the services sector also increased, largely in food and beverages services, wholesale and retail trade, as well as finance and insurance activities.

Meanwhile, the number of people outside the labour force went down by 1,900 to 7.2 million, with the top reasons being family responsibilities, schooling and training.

DOSM said the growing economic and social activities in Malaysia, as well as the increasing number of tourist arrivals by the end of 2022, have led to positive developments in the country’s economic growth.

“In line with this, Malaysia’ economy is expected to maintain its growth momentum, despite the slowdown and uncertainties of the global economy,” said DOSM.

SEE ALSO

Malaysia’s economy expands 14.2% in Q3, exceeding economists’ forecasts

Looking at the positive sentiment, DOSM said Malaysia’s labour market is expected to continue to improve with more people being recruited to accommodate the needs of the economy and businesses.

“As a result, labour demand and supply opportunities will emerge in the market, bolstering the labour market’s positive momentum in coming months,” it said.