January unemployment rate up slightly to 4.9%
PETALING JAYA: The unemployment rate rose slightly to 4.9% in January, from 4.8% in December, to 782,500 persons, partly due to review of business strategies in tourism-related industries which consisted of accommodation and food services, passenger transport, entertainment and recreational activities.
Chief Statistician Malaysia Datuk Seri Mohd Uzir Mahidin said entering 2021 the labour market remained in a challenging situation following the rising number of Covid-19 new cases, and the ensuing movement control order 2.0 (MCO 2.0) indirectly led to an uneven recovery momentum of the businesses and consequently, the labour market.
“During the MCO 2.0, only essential economic sectors which include manufacturing, construction, services, distributive trade, as well as plantations and commodities, were allowed to operate. Meanwhile, 30% of the employees in the management group were allowed to be in the office whereas support group employees were subject to necessity,” he said.
This situation caused the number of employed persons to increase with an addition of 21,900 persons to 15.24 million persons in January 2021. Thus, the employment-to-population ratio, which indicates the ability of an economy to create employment, rose to 65.2%
However, the labour force condition recovered modestly in January, reflected in the increase in the number of labour force during the month, going up 0.2% to record 16.02 million persons. A slight increase in labour force participation was observed for the month at a rate of 68.5%, from 68.4% in December.
Commenting further on the status of employment, Mohd Uzir said the employee’s category, which encompassed 77.7% of employed persons, enlarged by 0.3% to 11.85 million persons.
Overall, he said, as the essential services of five economic sectors were allowed to operate as usual on compliance with strict standard operating procedures, this has enabled some balance between economic consequences and public health.
“Looking at the health crisis situation in early of 2021, the labour market is expected to face a bumpy road in the first quarter.”