Malaysia’s labour market is expected to strengthen further in 2024 due to encouraging momentum in the domestic economy and recovery in external trade. (Photo: www.nst.com.my) Kuala Lumpur (VNA) - Malaysia's labour market isprojected to remain stable in 2024, with the average unemployment rate at 3.2%,according to Kenanga Investment Bank Bhd (Kenanga IB).
It reflected the growth of the employment market in recenttimes, the bank said, adding that this is largely attributed to the expectedsteady expansion in economic activities driven by strong domestic demand.
The bank forecast gross domestic product (GDP) growth to reach 3.3%in the first quarter of 2023 with an overall GDP growth rate for the whole year rangingfrom 4.5-5%.
However, Kenanga IB said structural issues in the labour marketremain concerning, particularly the persistent unemployment rate among youth (agebetween 15-24 years), which remained at 10.6% in February for the fourthconsecutive month, affecting 306,600 people. It noted that skill-related underemployment stood at 37.4%,reaching a record high of 1.94 million people in Q4 of 2023.
Hong Leong Investment Bank Bhd (HLIB) stated that Malaysia’slabour market is expected to benefit from a recovery in tourism activities andits spill-over effect on related sectors such as wholesale and retail trade,food and beverage, and accommodation, as well as the implementation of nationalprojects.
It also said that the improving global trade environment andthe implementation of foreign direct investment projects in the pipeline couldlead to better employment conditions in export-oriented sectors.
The National Human Resource Policy Framework, which is setto be launched by the government in May, is expected to help achieve the targetof a 35% skilled workforce by 2030, HLIB added./.
