Per the October 2022 Labour Force Report, improvement in Malaysia’s number of employed persons continued in October 2022, with a month-on-month rise of 0.2% (or 29,300 persons) to reach 16.08mn (September 2022: 16.05mn). On a year-on-year basis, the number of employed persons grew by 3.4% (or 526,900 persons) from 15.55mn persons in October 2021.
Meanwhile, the employment-to-population ratio for the month, which indicates the ability of an economy to create employment, was unchanged at 67.2% as against the preceding month.
By economic sector, the number of employed persons in the services sector continued on its upward trend, particularly in food & beverages services, wholesale & retail trade, and finance & insurance/ takaful activities. Similarly, the number of employed persons in the manufacturing, construction and agriculture sectors also recorded increases. In contrast, however, employment in the mining & quarrying sector continued to fall.
How employment fared by category of workers
The data also covered the number of employed persons across various categories of workers.
The employees category, which was the largest composition of the total employed persons with a share of 75.9%, noted an increase of 0.1% (equivalent to 17,700 persons), to record 12.20mn persons. For comparison, September 2022 noted 12.18mn persons. A similar trend was observed in own-account workers, with a growth of 0.4% (10,400 persons), totalling 2.83mn persons (September 2022: 2.82mn persons).
The number of employed persons who were temporarily not working continued to decline for the fifth consecutive month. With a reduction of 300 persons (0.4%) for the month, the number reached 79,800 persons in October 2022 (September 2022: 80,100 persons). As for the year-on-year comparison, this category dropped by 35%, or 42,900 persons (October 2021: 122,700 persons). This group of persons, who were most likely unable to work, was not classified as unemployed as they had work to return to.
Unemployment declined in October 2022
At the same time, the report also looked at how unemployment fared in the month. Per the updates, a decline of 0.5% (or 3,000 persons) was observed in the number of unemployed persons in the month, reaching 602,000 persons – down from 605,000 persons in September 2022. As a whole, October’s unemployment rate remained at 3.6%, 0.3p.p higher than its pre-pandemic level (February 2020: 3.3%).
The number of labour force also continued to expand, with a month-on-month increase of 0.2% (26,300 persons), growing to 16.68mn persons, from 16.66mn persons in September 2022. October’s labour force participation rate (LFPR) stood at 69.7%. At the same time, the number of persons outside the labour force continued its downward trend since August 2021, declining by 1,900 persons (0.03%) to record 7.24mn persons.
Digging deeper, the biggest reason for those outside the labour force was housework/ family responsibilities (43.3%), followed by school/training (40.9%).
Finally, according to DOSM, the growing economic and social activities, along with the continuously increasing number of tourist arrivals by the end of 2022, have led to positive developments in the country’s economic growth. In line with this, Malaysia’s economy is expected to maintain its growth momentum, despite the slowdown and uncertainties of the global economy. With the optimistic economic and business performance forecasts, the labour market is expected to be better, whereby more labour will be recruited to accommodate the economy and business needs.
As a result, labour demand and supply opportunities will emerge in the market, bolstering the labour market’s positive momentum in the coming months, the report highlighted.
All images / Labour Force Report, Malaysia October 2022
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