KUALA LUMPUR – Ambank Research expects Malaysia's 2021 full-year unemployment rate to decline to 4.4% from 4.8% previously as the labour market continues to recover following the reopening of the economy, albeit at a moderate pace.
However, the research firm said there is a need to remain cautious, as the uncertainties surrounding the new Covid-19 virus variants and business prospects could put a lid on job prospects.
“There is a need to look at the underemployed segment and those in the informal sector.
“It will take a few years, likely around 2023, for the country to reach an unemployment rate around the pre-pandemic level of 3.3%,” it said in a research note today.
Ambank Research said the unemployment rate had improved to 4.6% in August after peaking at 4.8% in June and July, possibly due to the easing of restrictions and gradual reopening of the economy, coupled with the high vaccination rate that allowed more sectors to operate.
“With 90% of the adult population vaccinated, we expect the economy to move into the endemic Covid-19 phase by end-October.
“This will allow more sectors to be reopened with new Covid-19 norms being practised, reinforcing growth and labour market prospects,” it said.
The number of unemployed persons fell to 748,800 in August, and the number of employed persons rose by 81,800 to a record 15.38 million persons, with the employment-to-population ratio increasing to 65.2% from 65% in July. – Bernama, October 11, 2021
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