• Unemployment rate dropped to 4.1% in February

• The number of unemployed persons declined by 8.6k to 671.8k in February

• Total labor force expanded with an additional of 36.3k persons to 16.40 million

• Labor force participation rate remained unchanged at 69.1%

• Labor demand could face bumpy recovery in 2Q22

Malaysia’s labour market continued to see improvement in February as employed persons expanded by 0.3% mom or 44.8k persons to 15.73m persons. Likewise, on a year-on-year comparison, the indicator continued to post positive growth for the twelfth straight month, whereby the number of employed persons rose 3.0% during the month. The employment-to-population ratio which indicates the ability of an economy to create employment, rose by 0.1 ppt to 66.3%. Year-on-year, the employment-to-population ratio also improved by 1.1 ppt from 65.2%.

The unemployment rate dropped to 4.1% in February as compared to the previous month. The number of unemployed persons lessened by 1.3% mom or 8.6k persons to register 671.8k unemployed persons, the lowest since March 2020. The unemployment rate for February was lower by 0.7 ppt year-on-year, with the number of unemployed persons decreasing by 105.7k persons.

The labour force participation rate (LFPR) remained unchanged at 69.1% compared to the previous month. Meanwhile, the number of labour force changed over the month was higher by 36.3k persons to record 16.40m persons. Year-on-year comparison, the number of labour force improved by 354.5k persons (Feb’21: 16.05m persons). In the meantime, when compared to the same month of the preceding year, the LFPR rose by 0.6 ppt (Feb’21: 68.5%).

Source: BIMB Securities Research - 11 Apr 2022