Malaysia’s unemployment rate rises to highest level since 1993

Malaysia’s unemployment rate increased to 4.5 percent in 2020 (Photo: malaymail.com)

Kuala Lumpur (VNA) – Malaysia’s unemployment rate increased to 4.5 percent in 2020, the highest rate since 1993 when it was recorded at 4.1 percent, according to the Department of Statistics Malaysia (DoSM).

Chief statistician Mohd Uzir Mahidin said an additional 772,900 people were unemployed in December 2020, up 4.8 percent month-on-month, while the number of employed persons edged up only 0.1 percent month-on-month, equivalent to 19,300 persons, to 15.22 million persons.

The labour force participation rate (LFPR) in 2020 remained at 68.4 percent, down 0.3 percentage point year-on-year.

Mohd Uzir said the country experienced a slower labour demand in 2020 due to adverse impacts of the COVID-19 pandemic and the health crisis had given a huge impact on the labour force which led the unemployment rate to reach above 4 percent against an average of 3 percent recorded in the pre-crisis period.

Malaysia’s labour market will remain in a challenging situation in early 2021 but various assistance and initiatives introduced by the government will cushion the impact of the pandemic on the labour market, he added./.

VNA