MIDF: Unemployment rate likely lower at 3.8pc this year

Thursday, 07 Jul 2022 5:29 PM MYT

KUALA LUMPUR, July 7 — Malaysia’s unemployment rate is projected to trend lower this year to 3.8 per cent from 4.6 per cent in 2021, underpinned by domestic reopening and strong economic fundamentals.

However, the projected jobless rate is still higher than the pre-pandemic level of 3.4 per cent, said MIDF Amanah Investment Bank Bhd.

Nonetheless, employment growth is forecasted at 2.5 per cent against 2.0 per cent in 2021, while unemployment is forecasted to shrink by 15.0 per cent this year against a rise of 3 per cent last year, the reseach firm said in a note today.

Unemployment has been falling at a double-digit rate for six consecutive months, the house said, adding that the robust growth in employment was driven by employers, those working for themselves and unpaid family workers.

Job vacancies remained strong at 460,800, slightly lower than the record high seen in February 2022, reflecting a strong recovery in domestic economic activities, it added. — Bernama