[ad_1]
KUALA LUMPUR: Malaysia’s unemployment rate is expected to decline further to 4.5 percent by the end of the year, according to United Overseas Bank (M) Bhd.
Its senior economist Julia Goh said the Malaysian labor market continued to improve with the unemployment rate falling for the second month in a row to 4.7 percent in July from 4.9 percent in June and the high of 5.3 percent. in May.
He said the total workforce increased by 55,000 people (month-on-month) to 15.82 million people in July as a result of the reopening of more economic sectors under the Recovery Movement Control Order, including tourism, education, entertainment and recreational activities.
“The influx of new graduates and returning workers in search of employment as economic conditions continue to improve should see a higher labor force participation rate in the coming months,” he said in a note today.
He said that most economic sectors recorded an increase in hiring in July, led by the service sector, particularly accommodation; food and drinks; and transportation and storage activities.
“The increase in employment in the manufacturing sector was led by the electrical and electronics sub-industries, related to metal, printing, plastics, motor vehicles and rubber products.
“Despite recent labor market indicators showing signs of improvement, we expect roadblocks in the future as some of the relief measures, namely the Salary Subsidy Program and the general six-month loan moratorium expire by late this month, “he said.
The loan moratorium and repayment assistance thereafter would be selectively extended to those still affected by COVID-19.
“This will help speed up the transition from extensive temporary relief measures and prevent another wave of business closures and layoffs,” Goh said. – Bernama
UOB Malaysia, unemployment rate, labor market
[ad_2]
