Job losses hit 42,807 nationwide from January to June, driven mainly by business closures and downsizing, says minister
KUALA LUMPUR: A total of 42,807 workers nationwide were reported to have lost their jobs from January to June 12 this year, said Human Resources Minister Datuk Seri R. Ramanan.
He said based on statistics from the Social Security Organisation (SOCSO), business closures and company downsizing were identified as the main causes of retrenchment, affecting 17,485 people or 40.85 percent.
“Kuala Lumpur recorded the highest number of job losses at 30 percent or 12,844 people, followed by Selangor with 12,360 people, and Johor, which recorded a job loss rate of 8.1 percent or 3,468 people,” he said during the Question Time at the Dewan Rakyat today.
He was replying to Datuk Azman Nasrudin (PN-Padang Serai) regarding the extent to which automation and artificial intelligence (AI) factors have influenced the trend of company closures and downsizing in the Klang Valley, which contributed to the majority of job loss cases since the beginning of this year.
He said AI is not a threat to employment at present; instead, the workforce needs to be equipped with AI-related skills so they are not left behind when the technology becomes a necessity in the future.
Replying to a supplementary question from Datuk Rosol Wahid (PN-Hulu Terengganu), Ramanan said the perception that AI is the primary cause of job loss is inaccurate, as data indicates that retrenchments are mostly driven by business closures, voluntary separation schemes, and workforce downsizing.
According to him, the country’s job market still shows a high demand for labor, with 605,168 job vacancies advertised through the MYFutureJobs portal since last January, compared to 188,062 job seekers, which includes those who lost their jobs.
Meanwhile, he said a TalentCorp study found approximately 697,000 jobs are at risk of being affected by technological advancements and the green economy within the next three to five years if workers do not upskill themselves.
In this regard, the Human Resources Ministry is implementing various upskilling and reskilling programs, including the Scheme for Training and Upskilling for Employability (SLaPB) and the Academy in Industry (ADI) program.
Additionally, they are providing the MyMAHIR.my platform and the MyMahir SkillsLab program, which include AI modules to help the workforce adapt to future requirements, he added.
