In 2023, the number of unemployed persons in Malaysia fell to 580,700, the lowest since the pandemic, with an unemployment rate of 3.4 per cent, as per the Labour Market Review, Fourth Quarter 2023 released by the Department of Statistics Malaysia (DOSM) on Friday (Feb 23).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stated that this reflected the improving economic developments throughout Q4 2023, with the labour force participation rate growing 0.6 per cent year-on-year, maintaining a high rate of 70.1 per cent compared to the previous quarter.
He noted that the labour force increased by 2.2 per cent to 16.91 million persons in Q4, driven mainly by the rise of 2.5 per cent in employed persons, accounting for 16.35 million persons.
He further mentioned that due to higher domestic demand, there was an increase in production, ultimately leading to a strengthened demand for labor despite the challenging external environment. The Malaysian economy grew by three per cent in Q4 2023, slightly lower than the 3.3 per cent growth in the preceding quarter.
On the underemployment situation, Mohd Uzir stated that the number of persons who worked less than 30 hours per week increased by 6.6 per cent compared to Q4 2022, totaling 286,100 persons. Skill-related underemployment, indicated by those with tertiary education being employed in semi-skilled and low-skilled occupation categories, increased by 2.4 per cent year-on-year to 1.94 million persons, with a rate of 37.4 per cent.
Regarding labor demand, Malaysia saw a 0.6 per cent increase in the number of jobs created during the quarter to meet industry needs, encompassing 31,100 jobs.
Mohd Uzir stated that preliminary estimates based on monthly average data showed a six per cent increase in the number of employed persons to 16.31 million. The labor force also expanded by 5.4 per cent to 16.89 million persons, while the participation rate went up by 0.7 percentage points to 70 per cent.
In 2023, despite external challenges, labor demand strengthened as jobs in the economic sector reached 8.94 million. A total of 126,500 jobs were created in 2023, surpassing the figures recorded in 2022 (116,700) and 2021 (69,500).
Mohd Uzir mentioned that Malaysia’s economy is expected to improve in 2024, driven by resilient domestic expenditure and recovery in external demand. Under those circumstances, the labor market is expected to remain stable, corresponding to the current economic developments and technological advances resulting from high-value investments supported by ongoing government initiatives.- Bernama
