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Malaysia’s labour market expands 2.5% in Q1 2023

The labour market has expanded 2.5 per cent in the first quarter of this year with 16.65 million persons compared to 16.25 million persons in the same period last year, according to the Labour Market Review First Quarter 2023 released by the Department of Statistics Malaysia (DOSM) today.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the labour force participation rate year – on – year increased to 69.8% from 69% in the same period last year.

“Strong domestic demand has created a favourable environment for the industry resulting in an increase in production and higher labour demand,“ he said in a statement today.

Mohd Uzir said the number of unemployed persons decreased by 12.6% in the first quarter of 2023 to 586,900 compared to 671,200 in the same period last year, the lowest unemployment rate since the outbreak of COVID – 19 at 3.5%, which was the same rate recorded in the first quarter of 2020.

“The continued decrease in the unemployment rate and the increase in job opportunities show positive momentum in the labour market and create a solid foundation for sustaining consumer spending and economic development,“ he said.

As for labour demand in the first three months of this year, Mohd Uzir said jobs in the private sector increased by 2.7% to 8.81 million compared to 8.57 million positions in the first quarter of last year.

He said labour demand in the country had improved as shown by the 22.7% growth in the number of jobs of which 31,700 were created.

Going into the second quarter of 2023, Mohd Uzir said the Malaysian labour market is expected to remain strong supported by continued economic development, government initiatives, and the resilience of key industries.

“By building an environment conducive to business growth and investing in workforce skills, Malaysia is well positioned to take advantage of emerging new opportunities and maintain a positive labour market outlook,“ he added.