KUALA LUMPUR – The gradual recovery in the labour market in the third quarter of 2021 (Q3 2021) was supported by transition to the National Recovery Plan (NRP), coupled with the rise in vaccination rate, according to the Statistics Department (DOSM).
Chief statistician Datuk Seri Mohd Uzir Mahidin said with the continuous rise in vaccination throughout the quarter, several states have transitioned to the next phases of the NRP while restrictions were slowly lifted.
“Thus, gradual recovery was observed in the labour market during Q3 2021 as reflected by the modest year-on-year increment of employment while jobs in the economic sector declined marginally,” he said in a statement today following the release of the Labour Market Review, Q3 2021 report.
Uzir said the number of employed persons increased by 1.2% to 15.27 million after rising by 2.2% in the previous quarter, while the number of unemployed rose by 0.2% to 746,200 and the unemployment rate was unchanged at 4.7%.
Meanwhile, he said the number of employed persons working less than 30 hours per week surged 15% year-on-year to 464,600 and subsequently, the rate of time-related underemployment rose to 2.1% to 326,200.
He said the number of tertiary-educated employed persons working in semi-skilled and low-skilled occupation categories increased 6.3% to 1.87 million compared with Q3 2020.
On labour demand, Uzir said the total number of jobs in the private sector shrank by 0.8% to 8.41 million in Q3 2021 compared to 8.47 million in the same quarter last year.
He pointed out that filled jobs dropped 0.7% to 8.23 million, while vacancies lessened 3.0% to 174,000.
On the vacancy rate, he said it remained at 2.1% for five successive quarters since Q3 2020, while rate of filled jobs stood at 97.9%.
“Q3 2021 saw a lower number of jobs created at 15,000 compared with 21,000 jobs created in the same quarter a year ago,” he said.
He said as the economy returned to a contraction of 4.5% in Q3 2021, labour productivity per employment fell 5.6% year-on-year.
”With the shrinking labour demand and increasing number of potential new entrants into the labour market, continuous reform is required in scaling up job opportunities,” he said.
Hence, Uzir said long-term ideal interventions may enable better absorption of labour supply into the labour market, and ultimately guarantee rise in efficiency as well as economic growth.
“While the supply side indicated moderate performance year-on-year with an increase in employed persons and a slight addition to unemployment, the economic sector demand registered a mild decline,” he said, adding that Malaysia’s labour market performance has yet to pick up relative to the pre-pandemic levels.
Entering Q4 2021, he said the public health situation appears to be improving alongside accelerated vaccination efforts.
“As most states have shifted to Phase 4, the economy is anticipated to regain momentum and consequently foster jobs growth, hence improving labour market conditions.
“As the nation is poised to exit the pandemic phase, the strategies and initiatives in Budget 2022 and the 12th Malaysia Plan will definitely facilitate better interactions in the labour market and ensure its gradual improvement surpassing the pre-pandemic level,” he added. – Bernama, November 19, 2021
