Malaysia’s labour market continues to improve

Kuala Lumpur (VNA) - The labour market in Malaysia continued to improve further in August with the latest unemployment rate at a pandemic low of 3.7% year-on-year.

According to a report by the United Overseas Bank, the labour force expanded for the 14th straight month, by 30,500 or a 0.2% increase month-on-month, to the largest ever size of 16.63 million, lifting the labour force participation rate to 69.7% in August.

The gain in total employment was again driven by increased hiring in services (particularly food and beverages services, wholesale and retail trade, and administrative and support service activities), manufacturing, and construction sectors. Agriculture and mining and 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%.

UOB projected unemployment rate to come in at 3.5% by end-2022 and 3.2% by end-2023, resting upon a projected economic expansion of 4% next year./.