by S BIRRUNTHA / pic TMR FILE

THE job market in Malaysia strengthened in July with the unemployment rate at 3.7%, close to pre-pandemic levels.

Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed (picture) said the latest unemployment rate was much better compared to the 4.5% recorded in 2021 and 4.2% (January 2022).

“The number of unemployed continued to decrease to 620,700 people, compared to 630,600 people in June 2022,” he said in a statement following the publication of Labour Force Statistics, Malaysia, July 2022 by the Department of Statistics Malaysia yesterday.

Mustapa said the number of working populations in July 2022 continued to record positive growth of 0.3% to 15.98 million people, compared to 15.94 million people in the previous month.

According to the economic sector, he said the number of people working in the service sector is increasing — especially in food and beverage service activities, trade wholesale and retail, as well as administrative activities and support services.

“Energy use in the manufacturing and construction sectors also showed an increase, except for the agriculture and mining, and quarrying sectors which recorded a decrease,” he said.

He said, the position of the labour force in July 2022 also improved following a continuous increase in the number of labour force by 0.2% month-on-month recording 16.6 million people.

“Thus, a higher labour force participation rate was recorded that month at a rate of 69.6%,” he said.

Mustapa added that the stronger job market was supported by the improved economic position for the second quarter of 2022 (2Q22) with economic growth becoming more robust at a rate of 8.9%, making Malaysia’s economy grow by 6.9% in the first half of this year.

“The increase in economic and social activities which have returned to normal, especially following the opening of national borders since April 1, 2022, had a positive impact on the national labour market which has created more job and business opportunities,” he said.

He noted that the momentum of labour market recovery is also in line with the implementation of government initiatives under the leadership of the prime minister, such as the JaminKerja-Employment Incentives programme and the creation of the National Employment Portal, MyFutureJobs.

“The government will continue to strive to increase job opportunities and improve the wellbeing of Malaysian families,” he said.

Going forward, Mustapa said the labour market is expected to remain strong in 3Q22 with the better business performance expected.

He said the confidence indicator recorded 4.7% for 3Q22 compared to 3.5% in 2Q22.

“This illustrates that the economic situation is expected to be better in 3Q22,” he said.