M'sia job market to improve in 2023 amid external concerns : MIDF research
10 Jan 2023 05:35pm
It noted that Malaysia’s average jobless rate is expected to descend from 3.8 per cent in 2022 to 3.5 per cent in 2023, but slightly higher than the pre-pandemic level of 3.3 per cent.
"Malaysia’s job market in 2023 is anticipated to continue benefiting from firm domestic demand, China’s reopening, the revival of construction projects, expansion of primary sectors thanks to elevated global commodity prices, and modest external trade activities,
"In addition, we view that the recently concluded general election should reduce domestic politics temperature and allow for better and smooth implementation of fiscal policy,” the research house said.
MIDF Research said initiatives for labour market recovery and domestic economic growth should be among the major elements in the upcoming re-tabling of Budget 2023 and the midterm review of the 12th Malaysia Plan.
It said steady expansion in primary sectors as well as construction and services will prop up more employment opportunities next year, thereby labour force and employment are predicted to pick up by +1.6 per cent respectively this year.
MIDF Research also noted the continued recovery of Malaysia’s labour market with the unemployment rate staying at 3.6 per cent in November 2022.
"The labour force and employment continued expanding +2.5 per cent year-on-year (y-o-y) and +3.2 per cent y-o-y, respectively, supported by robust domestic economic growth and upbeat external front.
"Unemployment dropped further by 13.5 per cent y-o-y, marking 15 consecutive months of contraction rate,” it said.
It also said that for the youth, aged 15 to 24, the unemployment rate was still at a double-digit rate of 11.9 per cent, more than a two-year low, but higher than the pre-pandemic rate (2019: 10.4 per cent).
On the other hand, it said that the outside labour force also reduced by -1.5 per cent y-o-y, registering the 13th-straight month of negative growth rate.
By type, it shared that employment growth was driven by employers +8.8 per cent y-o-y, self-account workers +8.4 per cent y-o-y and unpaid family workers +5.5 per cent y-o-y.
Meanwhile, the employee segment, which represents 75.9 per cent of total employment, grew steadily by +1.8 per cent y-o-y.
However, MIDF Research highlighted that the job patterns have shown signs of moderation in the economy amid a weakening external outlook.
On the number of job vacancies in Malaysia, the research house said that it registered 326,300 in October 2022.
In the first 10 months of 2022, job vacancies remain the highest at 412,200 on average, it added.
"This reflects a strong recovery in domestic economic activities fuelled by robust local demand and continuous expansion in the external sector.
"There is a better take-up by high-skilled occupations such as legislators, professionals and associate professionals.
"By sector, we notice a steady pick-up in agriculture, services and construction sectors, possibly induced by elevated commodity prices, strong consumer demand, international borders reopening and revival of infra projects,” it said.
-- BERNAMA
