KUALA LUMPUR: Malaysia’s labour market maintained an improving trend as the unemployment rate was kept at a post-pandemic low of 3.3 per cent in January 2024 with the labour force and employment growing steadily by 1.8 per cent and two per cent year-on-year (y-o-y) respectively.
MIDF Research said in a note today that the number of unemployed persons also dropped further by 4.8 per cent y-o-y and 0.2 per cent month on month (m-o-m) to 567,000 in January 2024, about 48,000 higher than the average number of jobless persons of 519,000 in 2019.
For youths aged 15 to 24, it noted the unemployment rate stayed at a post-pandemic low of 10.6 per cent (2019: 10.4 per cent).
By employment type, employee which made up about 75.2 per cent of the employment, increased steadily by 1.3 per cent y-o-y while employer (3.5 per cent of employment) and own-account-worker (18.3 per cent of employment) increased by 4.6 per cent and 4.7 per ceny y-o-y respectively in January 2024.
“The strengthening and healthier job market in our view will further reinforce consumer consumption and support overall Gross Domestic Product (GDP) growth for 2024.
The research house also pointed out that Malaysia’s job vacancies were 94,100 in December 2023, more than a three-year low. The moderation was expected given the surge in job vacancies after the economic reopening in the post-pandemic era.
It also noted that the monthly average job vacancies dipped below post-pandemic levels at 167,000 in 2023 in comparison to the lower monthly average of 114,000 from 2010-2019.
“We expect average job vacancies to hover at 100,000 to 120,000 per month for 2024 amid external trade recovery and resilient domestic demand,” it said.
Moving forward, MIDF Research said the labour market in Malaysia is expected to strengthen further in 2024, backed by encouraging momentum in the domestic economy and recovery in external trade with Malaysia’s average unemployment rate expected to be maintained at 3.4 per cent this year.
“The return of non-citizen workers is expected to boost overall employment and reduce the jobless rate. As of 2023, non-citizens’ employment is 2.4 per cent lower than pre-pandemic levels.
“The downside risks to Malaysia’s labour market among others are lower-than-expected external trade recovery and a dip in global commodity prices,” it added. – Bernama
