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- Malaysia: Unemployment Rate stayed put in August – UOB
Malaysia: Unemployment Rate stayed put in August – UOB
UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting review the latest labour market report in Malaysia.
Key Takeaways
“Malaysia’s labour market continued to show further improvement albeit moderately in Aug. Both the size of the labour force and employment breached another fresh record level while the national unemployment rate held steady at 3.7%.”
“The gain in total employment was again driven by increased hiring in services (particularly food & beverages services, wholesale & retail trade, and administrative & support service activities), manufacturing, and construction sectors. Agriculture and mining & quarrying sectors continued to trim headcounts. The employment-to-population ratio, which indicates the ability of an economy to create employment, surpassed pre-pandemic high level for four months in a row at 67.1%.”
“Cognizant of a potential global recession next year, still high operating costs and lingering COVID19 related risks, Malaysia’s labour market recovery may hit a speedbump going into 2023. A successful end to the country’s transition to COVID-19 endemicity and continued government support under the re-tabled Budget 2023 after the general elections are key to hold up the existing recovery momentum. We keep the view of a potential full labour market recovery back to pre-pandemic levels by mid-2023 for now, with the unemployment rate expected to ease to 3.5% by end2022 and 3.2% by end-2023.”
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