• Unemployment rate remained unchanged at 4.2% in January

• The number of unemployed persons reduced by 7.3k to 680.4k in January

• Total labor force changed with an additional of 30.2k persons to 16.37 million

• Labor force participation rate rose to 69.1%

• Labor demand to rejuvenate with the endemic transition

Malaysia’s labour market situation continued its steady improvement in January as employed persons expanded by 0.2% mom or 37.5k persons to 15.69m persons. Likewise, on a year-on-year comparison, the indicator continued to post positive growth for the eleventh straight month, whereby the number of employed persons rose 2.9% during the month. The employment-to-population ratio which indicates the ability of an economy to create employment, rose by 0.1 ppt to 66.2%. Year-onyear, the employment-to-population ratio also improved by 1.0 ppt from 65.2%.

The unemployment rate remained unchanged at 4.2% in January as compared to the previous month. The number of unemployed persons reduced by 1.1% mom or 7.3k persons to register 680.4k unemployed persons, the lowest since March 2020. The unemployment rate for January was lower by 0.7 ppt year-on-year, with the number of unemployed persons decreasing by 102.1k persons.

The labour force participation rate (LFPR) rose by 0.1 ppt to 69.1% compared to the previous month. Meanwhile, the number of labour force changed over the month was higher by 30.2k persons to record 16.37m persons. Year-on-year comparison, the number of labour force improved by 346.6k persons (Jan’21: 16.02m persons). In the meantime, when compared to the same month of the preceding year, the LFPR rose by 0.6 ppt (Jan’21: 68.5%).

Source: BIMB Securities Research - 9 Mar 2022