The latest job market report indicates that the youth aged 15~24 unemployment rate descended to a new pandemic low of 11.5%, but remained higher than pre-pandemic (2019: 10.4%). The recovery of Malaysia’s labour market continued as the unemployment rate remained at 3.6% in the first month of 2023.
Labour force and employment continued expanding +2.4%yoy and +3%yoy, respectively, supported by upbeat domestic economic momentum and an expansionary external front. On monthly basis, employment growth at +0.2%mom. Unemployment dipped further by -12.4%yoy, marking the 17th consecutive month of contraction rate. In addition, the outside labour force reduced by -1.3%yoy, registering the 15th-straight month of negative growth rate. By employment type, employees which made up about 75% of the employment grew steadily by +1.7%yoy while employer, own-account-worker and unpaid family worker increased by +7.9%yoy, +8.9%yoy and +0.5%yoy respectively in Jan-23. MIDF is optimistic about Malaysia’s job market recovery underpinned by upbeat local economic momentum, the return of foreign workers, the positive effects of China’s reopening and supportive & accommodative economic policies.
Buoyant job market
A number of job vacancies maintained above 300K in Dec-22. The average monthly job vacancies of 2022 were the highest at 396.1K. This reflects a strong recovery in domestic economic activities fuelled by robust local demand and continuous expansion in the external sector. Better take-up by high-skilled occupations such as Legislators etc., Professionals and Associate Professionals. By sector, MIDF says it notices a steady pick-up in services, construction and manufacturing sectors, possibly induced by elevated commodity prices, strong consumer demand, international borders reopening and revival of infra projects.
Labour market in Malaysia is expected to strengthen further in 2023 underpinned by continuous upbeat momentum in the domestic economy and modest expansion in the external sector. The house foresees Malaysia’s unemployment rate to decline further to 3.5% yet slightly higher than the pre-pandemic level of 3.3%. Steady expansion in primary sectors as well as construction and services will prop up more employment opportunities next year. Labour force and employment are predicted to pick up by +1.6% respectively this year.
