Malaysia’s unemployment rate expected to ease to 4.3% in 2021
Malaysia’s unemployment rate is expected to fall between 4.2% and 4.3%, compared to the historic high of 4.5% last year brought by the pandemic, according to Human Resources Minister Datuk Seri M Saravanan.
The minister said that despite the improved outlook, the growth of Malaysia’s labour market is constrained by factors such as a mismatch between qualifications and job opportunities, and slow career growth and salaries, reports The Malaysian Reserve.
“The ministry will continue to monitor the local labour market and give attention to the appropriate intervention programmes to stimulate recovery and drive the labour market’s efficiency,” he said in a statement.
He observed that the country’s labour market improved moderately in Q4’20, attributed to the ease of movement restrictions in several states.
“The loss of employment rate in the private sector also reduced for the quarter while work placement for categories including the professionals, managers, executives and technicians roles increased,” he added.
He also highlighted the supply mismatch between jobseekers and open roles, adding that the matter requires serious attention and will result in a wider gap if unaddressed.
“The job creation for salaried employees only grew at a rate of 1.1% compared to 7.5% in the same quarter of 2019,” the minister said.