• Unemployment rate fell to 3.9% in April

• The number of unemployed persons declined by 19.9k to 649.3k in April

• Total labour force expanded by 64.3k persons to 16.50m

• Labour force participation rate hit an all-time high of 69.4%

• Higher vacancies pointing to a tight labour market

Malaysia’s labour market strengthened in April as the number of employed persons expanded by 0.5% m-o-m or 84.1k persons to 15.85m persons. Likewise, on a yearon-year comparison, the indicator continued to post positive growth for the fourteenth straight month after it jumped by 3.3% during the month. The employment-to-population ratio which indicates the ability of an economy to create employment, went up by 0.3 ppt to 66.7%. On a year-on-year basis, the employment-to-population ratio also improved by 1.3 ppt to 66.7%.

Unemployment rate fell to a 25-month low at 3.9% in April consistent with the drop in the number of unemployed persons (3.0% m-o-m; 19.9k) - the lowest since March 2020.

The labour force participation rate (LFPR) edged up to 69.4% compared to the previous month which hit an all-time high. Meanwhile, the number of labour force changed over the month was higher by 64.3k persons to record 16.50m persons. On a year-on-year comparison, the number of labour force improved by 408.1k persons (Apr’21: 16.09m persons). In the meantime, when compared to the same month of the preceding year, the LFPR rose by 0.8 ppt (Apr’21: 68.6%).

Source: BIMB Securities Research - 10 Jun 2022