KUALA LUMPUR – The number of jobs created in 2020 decreased by 31,000 to 73,000 from the 104,000 recorded a year earlier, reflecting softer labour demand from businesses in the private sector, said the Statistics Department.
Chief Statistician Datuk Seri Mohd Uzir Mahidin said the preliminary numbers based on the average quarterly labour force statistics showed that employed persons recorded a marginal increase to 15.10 million, while the unemployment figure edged up to 711,000 people.
“Hence, the unemployment rate spiked to 4.5% against the average rate of 3% recorded during the pre-crisis period,” he said in a statement today.
He said valued added for 2020 contracted 5.6% as labour productivity per employment decreased by 5.4% to RM88,899 per person.
“Following the decline in business operating hours, total hours worked in 2020 reduced to 32.0 billion (from 35 billion in 2019), resulting in labour productivity per hour worked increasing 3.4% to RM42.”
He said 2020 was a tough year, but it gave industries the opportunity to re-examine their business models and venture into new areas.
“However, some businesses may find digitalisation more challenging due to the existing operational structure and lack of technical competencies, especially small and medium enterprises. The adoption of technology through smart business partnerships is one of the mechanisms to escalate SMEs’ economies of scale.
“Therefore, it is pertinent to ensure continuous support for SMEs in the adoption of digitalisation towards the creation of more skilled jobs, which will cater to the increase in skilled labour supply.”
On the outlook for 2021, he reiterated that Malaysia’s labour market early in the year will remain challenging. – Bernama, February 18, 2021
