Malaysia: Employment Growth Hit Record High +2.9%yoy 1QCY22

As for 1QCY22, employment growth was at record high of +2.9%yoy (4QCY21: +2.6%yoy) whereas the unemployment contraction rate hit the largest by -12.6%yoy (4QCY21: -8.7%yoy).

By age group, the jobless rate for those below 44 declined while above 45 inched up as compared to 4QCY22.

Unemployment rate for age group 15~24 registered at 11.1% (4QCY22: 11.7%), 25~34 at 4.2% (4QCY22: 4.4%), 35~44 at 1.6% (4QCY22: 2.0%), 45~54 at 1.8% (4QCY22: 1.6%) and 55~64 at 1.6% (4QCY22: 1.2%).

Rosy outlook for labour market

Looking ahead, MIDF says it expects Malaysia’s labour market to stay in a steady recovery trend as indicated by the job-vacancy rate which shoots to a record high at 74.9% in Feb-22.

On top of that, international borders reopening will push higher operating capacity in the domestic economy such as aviation, tourism, construction and manufacturing sectors.

As an oil-exporting economy, Malaysia is set to benefit from the soaring global commodity prices particularly the palm oil and oil & gas sectors.

Employment v/s unemployment rate

“We maintain average jobless rate at 4.0% for 2022. Malaysia’s unemployment rate is expected to trend lower this year underpinned by a further recovery in the domestic economy, continuous upbeat momentum in global trade, and coupled with skyrocketing commodity prices.

“With the announcement of international borders reopening, Malaysia’s labour market recovery remains on steady path following the possible return of non-citizens workers,” says the analyst firm.