KUALA LUMPUR – The unemployment rate in January 2021 increased slightly to 4.9% against 4.8% in December 2020, said the Statistics Department.
Chief statistician Datuk Seri Mohd Uzir Mahidin said the labour market remained in a challenging situation following the rising number of Covid-19 cases.
“The reintroduction of the movement control order in most states, with only five essential economic sectors allowed to operate, and restricted interstate and inter-district travel activities indirectly led to an uneven recovery momentum of businesses and the labour market,” he said based on the department’s Key Statistics of Labour Force in Malaysia report released today.
Uzir, however, said the reopening of essential services of the five economic sectors provided some balance between economic consequences and public health while adapting to the new norm.
Therefore, he said, the labour market remained in modest condition, having recovered slightly in January, reflected by the increase in labour force that month.
The statistics, based on a labour force survey, also revealed that the rise in employed people was much higher than that of the unemployed, signalling some improvement in the labour demand by businesses.
The labour force in January went up by 0.2% to record 16.02 million people, compared with 15.99 million in December.
A slight increase in labour force participation was observed during the month with a rate of 68.5% compared with 68.4% in December.
“The continuous increase in the number of unemployed people was partly due to a review of business strategies in tourism-related industries, which consist of accommodation and food services, passenger transportation, entertainment, and recreational activities,” said Uzir.
The number of employed people in the services sector persistently increased month-on-month, particularly in wholesale and retail trade, human health and social work, and education activities.
Meanwhile, employment in tourism-related industries continued to decrease, showing that these industries were hard-hit by the pandemic.
Employment in the manufacturing sector remained positive for the third month, while the construction sector also registered an increase.
The agriculture, mining, and quarrying sectors, however, recorded a constant decline in employment for the past seven months.
Looking at the health crisis situation in early 2021, the labour market is expected to face a bumpy ride in the first quarter.
Nevertheless, the implementation of the nationwide vaccination programme seems to shine a positive light on the health crisis.
In support of efforts to curb the spread of Covid-19 infections in the country, the Statistics Department has reopened its online census platform (e-Census).
Further information on the Malaysia Census 2020 can be obtained through the census portal, www.mycensus.gov.my, or social media handle @MyCensus2020. – Bernama, March 8, 2021
