Malaysia’s labour market to further strengthen in 2024
KUCHING: The labour market in Malaysia is expected to strengthen further in 2024, backed by encouraging momentum in the domestic economy and recovery in external trade, analysts at MIDF Amanah Investment Bank Bhd (MIDF Research) observed.
In a report, it said: “The labour market in Malaysia is expected to strengthen further in 2024, backed by encouraging momentum in the domestic economy and recovery in external trade.
“Malaysia’s average unemployment rate is expected to maintain at 3.3 per cent in 2024.
“The return of non-citizens workers is expected to boost overall employment and reduce the jobless rate.
“As of 2023, non-citizens’ employment is -2.4 per cent lower than pre-pandemic levels.”
It noted that the downside risks to Malaysia’s labour market among others is lowerthan-expected external trade recovery and nosedived of global commodity prices.
As of the first three months of 2024 (3M24), it said, the average jobless rate was 3.3 per cent (2023: 3.4 per cent) while labour force and employment increased by 1.7 per cent (2023: 2.0 per cent) and 2.0 per cent (2023: +2.4 per cent).
Malaysia’s labour market remained healthy and stable as unemployment rate kept at postpandemic low of 3.3 per cent in March 2024.
MIDF Research pointed out that the labour force and employment grew steadily by 1.7 per cent y-o-y and 1.9 per cent yo-y respectively.
“We expect better domestic consumption contribution for 1Q24 GDP performance due to steady employment growth 2.0 per cent y-o-y (4Q23: +2.0 per cent y-o-y) and low jobless rate 3.3 per cent (4Q23: 3.3 per cent),” it opined.