• Employment rate edges down to 4.9%

• The number of unemployed persons fell by 52.9k to 773.2k in June

• Total labour force increased by 49.5k persons to 15.76 million

• Labor force participation rate up marginally to 68.1%

• More than 40% of outside labour force due to housework/family responsibilities

• Labour market pressures easing

The unemployment rate edged down to 4.9% in June (May: 5.3%) as the economy continues to normalise and recover under the Recovery Movement Control Order (RMCO). The number of unemployed persons fell by 52.9 thousand, bringing the total number of unemployed persons to 773 thousand in June. The gradual recovery of the Malaysia’s labour market was observed as employed persons grew marginally by 0.7% mom (May 2020: -0.3%) to 14.99 million persons. Year-on-year, employed persons declined by 1.0%. Meanwhile, employment-to-population ratio which provides information on the ability of an economy to create employment increased 0.3 percentage points from the previous month to post 64.7%.

The opening of more economic activities since 10 June 2020 initiated more positive impact with an increase in the number of labour force by 49.5 thousand persons to record 15.76 million persons as compared to May 2020. Meanwhile, year-on-year, labour force recorded an increase of 107.5 thousand persons (0.7%). The LFPR in June 2020 recorded a marginal growth of 0.1 percentage points month-on-month to 68.1%.

Source: BIMB Securities Research - 10 Aug 2020