Positive signs for Malaysia as unemployment rate falls

The unemployment rate in Malaysia has dropped to 4.7% in July following the progressive reopening of its economy since May, said Minister in the Prime Minister’s Department Mustapa Mohamed.

Besides seeing an improvement in its jobless rate from the record high of 5.3% in May, Mustapa added that 28,200 more people were employed since June, with 745,100 people without jobs.

“The recovery of the labour market and economic activities is in line with the decision of the government to reopen the economic sectors in stages since May. This has allowed more businesses to operate since, and now almost all economic activities are in operation again. The economic stimulus packages have also helped,” he said.

“Although the labour market keeps improving as targeted, the government is aware that there are still 745,100 people unemployed, which is higher than the national average of 494,000 for the period of 2016 to 2019,” he said.

However, Mustapa clarified that the unemployment figures do not include the 104,300 people who are temporarily jobless as their jobs were terminated temporarily as they still had their jobs and would return to work eventually.

He also revealed that there has been a spike in labour usage since June especially in the services, transport, information technology and communication sectors.

“The Industrial Production Index which includes three main sectors which are mining, manufacturing and electronics saw a 2.1% growth in July,” he added.