In the second quarter of 2021, labour force dropped 0.2 per cent quarter on quarter or equivalent to 36.1 thousand persons to record 15.97 million (Q1 2021: 16.01 million persons).
Accordingly, the labour force participation rate (LFPR) showed a decline during the quarter with a reduction of 0.3 percentage points to record 68.3 per cent (Q1 2021: 68.6%).
“The employment-to-population ratio which indicates the ability of an economy to create employment fell to 65.0 per cent (Q1 2021: 65.3%). Meanwhile, outside labour force registered a hike of 109.6 thousand persons to 7.43 million persons,” , Department of Statistics chief Statistician Datuk Dr Mohd Uzir Mahaidin said.
Year-on-year comparison, labour force registered an addition of 286.7 thousand persons (Q2 2020: 15.68 million persons) while LFPR went up by 0.2 percentage points from 68.1 per cent (Q2 2020).
The economic sector in June 2021 showed that all sectors registered a decline month-on-month in employment with Services sector posted decreases for the first time after twelve months.
“The reduction in Services sector was largely in Accommodation and food & beverages services; Real estate; and Wholesale & retail trade activities..
In a statement from DOS, it said that the largest composition of employed persons was employee’s category with 77.6 per cent. This category reduced by 56.7 thousand persons (-0.5%) to 11.87 million persons as compared to the previous month (May 2021: 11.93 million persons).
Meanwhile, own-account workers which comprised mostly of daily income earners working as small business operators such as small retailers; hawkers; sellers in markets and stalls as well as smallholders, recorded an addition of 4.1 thousand persons to 2.50 million persons (May 2021: 2.49 million persons).He said that the unemployment rate in June 2021 climbed to 4.8 per cent (May 2021: 4.5%) after fourconsecutive months of decreases. The number of unemployed persons escalated by 40.6 thousand persons (+5.6%) to 768.7 thousand persons (May 2021: 728.1 thousand persons).