Jobless rate may increase to 3.3%

> Under 4% still considered as full employment by OECD standards, says minister

SUBANG JAYA: Unemployment will likely increase slightly from 3.1% to no more than 3.3% in 2017, which is still within acceptable levels.

Human Resources Minister Datuk Seri Richard Riot Jaem said countries with employment rates of below 4% is considered by the Organisation for Economic Cooperation and Development (OECD) to have a fully employed workforce.

“It is true that the number of unemployed are going up, but it is still below 4%, which is considered as full employment by OECD standards.

“With huge development projects going on in Johor and Sarawak, I am confident that the unemployment rate will not be more than 3.3% (for 2017),” Richard told a press conference at the Proton Centre of Excellence (COE) yesterday.

He said the losses in jobs can be attributed to a slowing global economy and falling oil prices but development and the 1.5 million jobs that the 11th Malaysia Plan is expected to create will mitigate it.

Speaking on the 11th Malaysia Plan, Richard said 60% of the jobs which will be created are considered skilled occupations, which is intended to address Malaysia’s low number of skilled workers.

He explained that skilled workers comprise a mere 28% of the workforce, which falls far short from the examples set by developed countries.

“Our neighbour, Singapore, is at 50%. Germany, which is a highly advanced nation, is at 80%.

“If we look at other developed Asian countries like Japan and South Korea, it’s at 67% and 68% (respectively),” Richard said, adding that Finland and Norway is at 100%.

He said having a skilled workforce is vital to Malaysia’s planned ascension to the status of a developed country by 2020, and the government is targeting to have skilled workers comprise at least 35% of the workforce by then.

With less than three years to go, Richard said the government is focusing on skills training programmes and this is also reflected in Prime Minister Datuk Seri Najib Abdul Razak’s National Transformation 2050 (TN50) policy.

“He did not mention it specifically, but there is an increased focus on Technical Vocational Education and Training (TVET). We are on the right track,” he said.

Richard was at the Proton COE yesterday to officiate a graduation ceremony for 30 Proton employees who have completed their Malaysian Advanced Skills Diploma (DLKM).