• Unemployment rate edges down to 4.7%
• The number of unemployed persons fell by 28.2k to 745.1k in July
• Total labor force increased by 55k persons to 15.82 million
• Labor force participation rate remained at 68.1%
• Labor market continue to improve as employed persons continued to increase
• Gradual recovery in economic activities increase jobs opportunities

The unemployment rate edged down to 4.7% in July (Jun: 4.9%) with more businesses reopening and resuming its operations. During the same period, the number of unemployed persons decreased by 28.2 thousand to 745.1 thousand persons (Jun: 773.2 thousand persons). Year-on-year, the number of unemployed persons increased by 220.3 thousand persons as against July 2019 (524.8 thousand persons).

The number of employed persons continued to grow by 0.6% mom in July after recording a growth of 0.7% mom in June. The number of employed persons went up to 15.07 million persons. The employment-to-population ratio increased to 64.9% in July (Jun: 64.7%).

As the permission to operate extended to more sectors including tourism, education, arts, entertainment & recreational activities, the total labour force grew by 55.0 thousand persons to 15.82m persons compared to June 2020. Year-on-year, labour force registered an increase of 113.9 thousand persons (0.7%) from 15.70m persons (July 2019). The LFPR in July remained at 68.1%. However, it was lower by 0.4 percentage points as against the same month of the previous year.

Source: BIMB Securities Research - 14 Sept 2020