Unemployment rates rebound as Malaysia reopens economy amid Covid-19 pandemic, SE Asia News & Top Stories



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KUALA LUMPUR – At the height of the Covid-19 pandemic in April, car salesman Muhammad Nasrul Musa lost everything he had: his job, his savings, and even his car.

But things started to look up after the country’s movement restrictions were lifted in stages starting in May, when Malaysia cautiously reopened many sectors, providing new jobs for the thousands who were laid off overnight.

The 40-year-old said he is slowly regaining his balance after he managed to get a job as a research consultant at a company in Glenmarie, Selangor.

“It’s a part-time job, but I’m already very happy because although there are many companies looking for people now, the truth is that it is not that easy to get one,” the father of two told The Straits Times.

Ms. Noor Laily Izzati Hamid, 37, was fired from her job as an employee shortly after the government implemented the Movement Control Order (MCO) on March 18, shutting down all sectors except essential services.

Seeing an increase in demand for online shopping and home delivery, she decided to try providing these services to support her family after seeing her neighbor packing more than 50 packages a day as a personal shopper.

“I was laid off at the end of March. It was so sudden, but instead of thinking about it, I decided to start an online business in addition to becoming a Foodpanda delivery passenger,” he said.

“When I am not busy delivering food or items, I will search for the best deals on e-commerce platforms and resell them at a slightly higher price,” said the mother of three, who now earns at least RM2,000 (S $ 660) more than it did previously.

Muhammad Nasrul and Noor Laily are just two examples of how new opportunities have emerged for job seekers after the pandemic that has claimed lives and livelihoods around the world as governments fight the deadly virus.

In May, two months after Malaysia implemented the OLS, the unemployment rate rose to 5.3 percent, from 5 percent in April and 3.9 percent in March.

However, a gradual downward trend began after restrictions were gradually relaxed, falling to 4.9 percent in June and dropping further to 4.7 percent in July.

Malaysia’s unemployment rates have ranged from 3.2 to 3.3 percent since the end of last year.

“Covid-19 has definitely highlighted how the gig economy has become an integral part of the new economy. During the motion check when many Malaysians lost their income, the gig economy has created income opportunities for those who giggles. they needed, “a Grab spokesman said. The times of the Strait.

More than 10,000 people joined Grab as drivers and delivery partners during the recovery phase of the MCO.

Demand for delivery services also increased significantly during the partial shutdown.

“Our deliveries increased by more than 30 percent, therefore we had to change our services and operations to ensure that the livelihoods of all our partners were protected. This included relocating over 100,000 drivers to support deliveries and provide them with an alternative source of income like our transportation. Business was hit hard and fell 90 percent. “

According to statistics released this month, the number of people employed in July was 15.07 million, an increase of 0.6 percent from June, according to Malaysia’s chief statistician, Mohd Uzir Mahidin.

Most economic sectors, such as those related to education and tourism, have registered an increase in the number of employed persons since June as the sectors slowly reopened.

However, the figures are still not on par with those recorded before the pandemic.

“Although the labor market is on the way to recovery, the number of unemployed was still high compared to the period from January to February this year, where the average number of unemployed was 518,000,” Mohd Uzir told The Straits Times .

The government has introduced various initiatives and stimulus packages since the end of March to help citizens, including the provision of wage subsidies, retraining and refresher programs, recruitment and training assistance, as well as social protection (including a plan for work-related accidents and a retirement fund) for the concert. economy.

He noted that with the reopening of kindergartens, schools, universities and colleges, related activities such as school bus services, canteens and enrollment centers also felt the positive impact. Parents were also able to return to work.

Many have also seized the opportunity to travel domestically, amid the continued closure of Malaysia’s borders until December 31.

As such, the demand for lodging, food and beverage, entertainment, and recreational services has increased in tandem, encouraging companies to retain or even increase job opportunities.

“In other words, the resumption of economic activities has resulted in the reactivation of the labor force situation,” he said.

Malaysia’s economy is showing signs of gradual recovery in the coming months, provided the country continues to contain the Covid-19 outbreak, he said.

However, the number of cases has increased in the last week. On Sunday (September 27), there were 150 new cases and one death, out of 82 cases on Saturday.

“As economic activities continually reopen alongside increased travel activity, domestic demand may rise and subsequently increase employment opportunities. In line with this, the labor market is expected to revive as employment increases. accelerates while unemployment continues to fall, “he added. .



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