10th June 2022 - 3 min read
The latest labour report by the Department of Statistics Malaysia (DOSM) has indicated that Malaysia’s unemployment rate in April 2022 declined to 3.9% from 4.1% in March. This is the first time that Malaysia’s unemployment rate has dipped below 4% since the onset of the Covid-19 pandemic two years ago.
According to the report, the number of unemployed persons decreased by 3%, from 669,200 persons in March to 649,300 persons in April. It noted that 83.6% of the unemployed persons were made up of actively unemployed persons – defined as unemployed individuals who are actively looking for jobs. This category posted a decline of 3.2% from 561,000 persons in March to 542,900 persons in April. In addition, 58.1% of the actively unemployed group were out of a job for less than three months, while 7.1% were unemployed for more than a year.
The report also stated that 16.4% of the unemployed persons consisted of inactively unemployed persons – described as those who believe that there are no jobs available. This category registered a decrease of 1.6%, dropping from 108,100 persons in March to 106,400 persons in April.
Meanwhile, the number of employed persons rose by 0.5% to 15.85 million persons in April, as compared to 15.77 million persons in the previous month. Of the total, 76.3% fell under the employees category, translating to 12.09 million persons. This is a 0.3% increase from 12.06 million persons in March. Similarly, the own-account workers category also registered an increase of 1.2%, from 2.69 million persons in March to 2.72 million persons in April.
“The increase was partly due to more business activities in conjunction with the celebration of Ramadan and preparation for Aidilfitri during the month parallel with the reopening of the international borders which encouraged the tourism sector and tourism-related industries to resume their activities,” stated the chief statistician of DOSM, Datuk Seri Dr Mohd Uzir Mahidin.
Datuk Seri Dr Mohd Uzir Mahidin also commented that the overall labour force in April increased by 0.4% to 16.5 million persons, as compared to 16.44 million persons in the previous month. “Accordingly, the labour force participation rate edged up by 0.2 percentage points to 69.4% from 69.2% in March, indicating more labour participation in the market,” he added.
Despite the positive development, Datuk Seri Dr Mohd Uzir noted that current global supply chain disruptions may adversely affect the trajectory of the national labour market. However, he also said that Malaysia will likely enjoy a more positive economic outlook with the reopening of the national borders and the resumption of more economic activities, following the country’s transition to the endemic phase.
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