Business News

Malaysia: Economic Fundamentals Firming. Job Market Expand

Malaysia is enjoying a healthy job market and this is adding to the firming-up of the economic fundamentals, says MIDF.

Malaysia’s labour market continued on an improving trend as the unemployment rate maintained a pandemic low of 3.4% in Aug-23. Labour force and employment continued expanding +1.8%yoy and +2.1%yoy, respectively, supported by upbeat domestic economic momentum.

The unemployed persons dropped further by -3.8%mom to 557K, approximately 38K higher than the average jobless persons 519K in 2019.

The Job Market

Average job vacancies recorded below 200K levels in 1HCY23. Malaysia’s job vacancies registered slightly lower to 164.3K in Jun-23. This was in line with our expectations of moderating pace in employment growth in 2HCY23 due to persistence weakness in external trade performances. The monthly average job vacancies dipped below post-pandemic levels at 197.9K in 1HCY23 (2021: 206.7K, 2022: 396.1K).   

“We keep the average jobless rate forecast at 3.5% in 2023. The labour market in Malaysia is expected to strengthen further in 2023 and 2024, backed by encouraging momentum in the domestic economy. Malaysia’s average unemployment rate is expected to decline further to 3.5% in 2023 and return to pre-pandemic levels at 3.3% in 2024” says MIDF.

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