Positive employment trends to cap off 2023
Nation’s stable economic foundation, growth a boost
“The labour force further expanded throughout the month, as indicated by a positive trend in employed persons and a concurrent decrease in the number of unemployed persons.”
Datuk Seri Dr Mohd Uzir Mahidin
JAYA: Malaysia’s unemployment rate in December 2023 remained unchanged at 3.3% as in November but the number of unemployed persons continued to fall to 567,800 persons.
The number of employed persons increased by 0.2% month-on-month to record 16.46 million persons in December according to the Statistics Department.
“The positive employment trends observed in the final month of 2023 were indicative of the stable nation’s economic foundation, driven by a continuing growth in economic and social activities.
Consequently, the labour force further expanded throughout the month, as indicated by a positive trend in employed persons and a concurrent decrease in the number of unemployed persons,” the department’s chief statistician Datuk Seri Dr Mohd Uzir Mahidin said yesterday.
Thus, the number of labour force increased in December by 0.1% month-onmonth to 17.03 million persons, leading to a higher labour force participation rate of 70.2%.
It added Malaysia’s labour market is likely to remain robust in 2024 driven by the nation’s healthier economic outlook, supported by rising infrastructure spending, higher foreign direct investment and recovery in tourism.
The department noted the gradually increasing tourism activities in the country is also expected to generate economic growth, which will have a knock-on effect on other economic sectors, boost business prospects, and increase job opportunities for Malaysians.
Furthermore, as Malaysia is making its move towards a greener economy, the department stated it will be necessary to build up capacity through the employment of cutting-edge technology in the production process and the availability of highly skilled labour.
In order to fill this demand, more highly skilled employment will be produced in the future.
That aside, the total number of employed persons in December was primarily comprised of the employees’ category, accounting for 75.2% while own-account workers category increased by 0.3% to three million persons.
Sector wise, the services sector continued to record a rise in the number of employed persons, notably in information and communication; food and beverage services; and transportation and storage activities.
A similar trend was also observed in the manufacturing, construction and mining and quarrying sectors, the department noted, adding that the number of employed persons in the agriculture sector continued to decline during the month.
The number of persons outside the labour force declined by 0.02% to 7.23 million persons.
Skill-related underemployment, which includes those with tertiary education but working in semi-skilled and low-skilled occupations, saw a 0.7% increase to 1.94 million persons, resulting in a skill-related underemployment rate of 37.4% at the end of 2023, the department’s release stated.