• Unemployment rate remained unchanged at 4.1% in March

• The number of unemployed persons declined by 2.6k to 669.2k in March

• Total labour force expanded with an additional of 35.8k persons to 16.44 million

• Labour force participation rate hit an all-time high of 69.2%

• Labour demand to continue to improve alongside labour supply

Malaysia’s labour market continued to improve in March as employed persons expanded by 0.2% mom or 38.5k persons to 15.77m persons. Likewise, on a year-on-year comparison, the indicator continued to post positive growth for the thirteenth 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 66.4%. Year-on-year, the employment-to-population ratio also improved by 1.0 ppt from 65.4%.

The unemployment rate remained unchanged at 4.1% in March as compared to the previous month. The number of unemployed persons lessened by 0.4% mom or 2.6k persons to register 669.2k unemployed persons, the lowest since March 2020. The unemployment rate for March was lower by 0.6 ppt year-on-year, with the number of unemployed persons decreasing by 84.0k persons.

The labour force participation rate (LFPR) edged up to 69.2% compared to the previous month. Meanwhile, the number of labour force changed over the month was higher by 35.8k persons to record 16.44m persons. Year-on-year comparison, the number of labour force improved by 356.0k persons (Mar’21: 16.08m persons). In the meantime, when compared to the same month of the preceding year, the LFPR rose by 0.6 ppt (Mar’21: 68.6%).

Source: BIMB Securities Research - 11 May 2022