The unemployment rate in June, 2022 dropped to 3.8 percent – the lowest since the COVID-19 pandemic hit the country with the number of those unemployed decreasing to 630,600 people compared to 3.9 percent (637,700 people) in May 2022.
The nation’s Economic Planning Unit stated this is based on the Key Statistics for Labour Force in Malaysia for June released by the Department Statistics of Malaysia today.
Findings show that the country has reached full employment since April 2022, in terms of the unemployment rate being below 4 percent as defined by Organisation for Economic Co-operation and Development (OECD).
In June 2022, the labour force was found to be more stable due to the continued increase in the number of workers. It raised by 0.2 percent (month-on-month) to 16.57 million people from 16.54 million in May, 2022. The active labour force participation rate for the month was maintained at 69.5 percent.
Minister in the Prime Minister’s Department for Economic Affairs Datuk Seri Mustapa Mohamed said: “The achievement of the labour market in June 2022 is in line with the current move towards a stronger economy following the transition to the endemic phase across the country. This has resulted in a greater demand for labour, thus opening up more job opportunities in the market.”
Data revealed that there is an increase of 43.4 percent in the nation’s trade volume in June to a new high of RM270.4 billion with exports recording an increase of 38.8 percent to RM146.2 billion.
The Industrial Production Index increased by 12.1 percent in June 2022 — the highest since May 2021 — with all sectors recording positive growth. Here, the manufacturing, electrical components and mining sectors each recorded an increase of 14.5 percent, 14.1 percent and 2.1 percent respectively.
The sales volume in the manufacturing sector for June 2022 rose by 23.4 percent — also the highest since May 2021 – with sales worth RM153.5 billion. This achievement was mainly driven by the electrical equipment and electronics subsector which increased by 25.4 percent.
Employment, or number of people who are working, increased by 0.2 percent in June 2022 to 15.94 million people compared to it being 15.90 million people the previous month. Employment is seen to be strengthening across all sectors except for those in the mining and quarrying industries.
Improvements to the employment rate is driven by the service sector, specifically by those in the food and beverage services, wholesale and retail trade along with administrative and support services.
The national economy is expected to grow this year at the targeted rate of between 5.3 percent and 6.3 percent. The overall trend for the unemployment rate in Malaysia is around 3.4 percent, (which is a similar average for the period 2011-2021).
Taking into account various indicators, the economy is seen to reflect a greater momentum towards positive recovery and based on this, job opportunities are expected to increase in the market, while the unemployment rate is expected to be kept close to the long-term trend.