KUALA LUMPUR: The nation’s labour market has exhibited a strong recovery from the adverse impact of the pandemic due to robust socio-economic activities and the effective implementation of various employment stabilisation initiatives.
According to Updates on Economic & Fiscal Outlook and Revenue Estimates 2023 released by the Finance Ministry today, the economy managed to return to its full employment level starting from the second quarter of 2022.
The report said although the unemployment rate has not returned to the pre-pandemic trajectory, most of the labour market’s variables such as job creation, vacancies and retrenchment registered significant improvements attributed to strong labour demand in all economic sectors.
Despite the youth unemployment rate is still in double-digits, it has shown a downward trend and the overall unemployment rate for the year is expected between 3.8 per cent to 4 per cent, the report noted.
“In tandem with the sustainable trend of encouraging economic growth anticipated in 2023, the labour market is also expected to sustain the recovery momentum.
“Expansion in all economic sectors and the new for more workers to support the domestic demand upsurge will stimulate higher labour demand,” it said.
The report said the accommodative policies to facilitate the adequate supply of workers for business activities, particularly in labour-intensive industries, will be continued to encourage more employment opportunities, particularly for youths.
“Thus, the total employment is projected to further expand by 1.7 per cent to 15.6 million persons with more than 80 per cent of employment opportunities will be available in the services and manufacturing sectors.
“Therefore, unemployment is forecast to further decrease to the range of 3.5 per cent to 3.7 per cent,” it said.
Continuous efforts to attract quality investment and expedite digitalisation will allow the creation of more high-paying and high-productivity jobs in the economy.
“These will contribute to better income prospects for the workforce and improvement in the overall compensation of employees,” it added. – BERNAMA
