The labour market increased by 2.4 per cent in the second quarter (Q2) of 2023, with a record of 16.73 million persons despite slower growth in employment and a smaller decline in unemployed persons, according to the Department of Statistics Malaysia (DOSM) today.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the increase was mainly contributed by the 2.8 per cent increment in employed persons, accounting for 16.15 million persons in Q2 2023. He said the number of unemployed persons declined by 9.5 percent year-on-year to 581,400 persons, recording the national unemployment rate at 3.5 per cent during the quarter.
“Increased demand for labour by industries has resulted in an increase in employment although at a slower pace in Q2 2023, leading to a reduction in the unemployment rate compared to a year ago.
“These circumstances have contributed to positive economic growth amid a challenging global environment by recording a moderate 2.9 per cent increase in Q2 2023 as compared to a growth rate of 5.6 per cent in Q1 2023,” he said.
Mohd Uzir said labour participation also recorded the highest rate compared to prior pandemic period, to record 70 per cent, which is an increase of 0.8 percentage points from the same quarter last year. Commenting on the labour demand situation in Q2 2023, he said jobs in the private sector increased by 2.4 per cent to 8.83 million jobs.
“Filled positions comprised 97.9 per cent of the total jobs and grew 2.5 per cent to 8.64 million, while job openings indicated by the number of vacancies comprised another 2.1 per cent of jobs, declined by 0.9 per cent to 189,600 vacancies,” he said.
He said more than half of the job vacancies in Q2 2023 were in the manufacturing sector which accounted for 108,000 vacancies, largely in the electrical, electronic and optical products sub-sector which recorded 34,200 vacancies. He said the improved labour demand situation during the quarter was also indicated through the 8.6 per cent increase in the number of jobs created.
Mohd Uzir said the labour market momentum is expected to sustain a steady growth in the upcoming quarter, supported by continued economic development, government initiatives and quality investments that will generate quality and high-paying jobs.
“However, this is subject to various global and domestic challenges arising from unprecedented situations that may occur in the future,” he said.”
