Malaysia’s unemployment rate remained stable in October this year, as the number of jobless people decreased while the labour force expanded, the latest data showed.
The unemployment rate stood at 3.2%, a level generally considered as full employment, the Department of Statistics Malaysia said in a statement. The number of unemployed individuals, meanwhile, was marginally lower at 551,400, compared with 555,300 in the previous month.
“The country’s labour market position remains optimistic”, thanks to an expanding economy, amid a rising number of employed persons and a decline in the unemployed, said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
The number of employed individuals also increased further, edging up 0.2% month-on-month to 16.72 million. All in all, the labour force expanded by 0.1% to 17.27 million individuals.
The labour force participation rate remained unchanged at 70.5% in October. The number of employees, which make up 75% of the total workforce, ticked up 0.1% to 12.53 million individuals in October.
The own-account workers — people who operate their own farm or business, or trade on a full-time basis without employing any paid workers — increased by 0.3% to 3.10 million persons.
By sectors, employment in the services sector steadily increased, largely in wholesale and retail trade, food and beverage services, and transportation and storage activities. The manufacturing, construction, mining, and agriculture economic sectors also recorded employment growth.
Unemployment of youth, defined as those between 15 and 24 years old, fell slightly to 10.4%, with 301,500 youths out of work, while the unemployment rate of the broader 15-to-30 age group was relatively steady at 6.3%, with 420,200 unemployed.
MIDF says the unemployment rate to average lower at 3.2% in 2025
MIDF Investment Bank expects positive labour market conditions to persist into 2025, supported by a favourable economic outlook, a greater push for hiring local talent, and a recovery in foreign labour employment.
The unemployment rate is projected to average lower at 3.2% in 2025, compared to 3.3% in 2024, according to the research house’s note.
“Despite tighter regulations and a greater push for hirings of local talents, recovery in foreign labour employment will also contribute to overall employment growth. As of 3QCY24, total hirings of non-citizens have increased to 2.41 million (4QCY23: 2.22 million), or 1.1% higher than the pre-pandemic level of 2.39 million in 4QCY19, which indicates even hirings of foreign labour has surpassed pre-pandemic levels,” it said.
Nonetheless, MIDF flagged potential downside risks to the employment outlook including weaker demand from major trading partners, the imposition of protectionist trade policies, and a renewed rise in operating costs due to negative spillover effects from domestic policy changes. – The Edge Malaysia
