• Unemployment rate stayed at 3.9% in May

• The number of unemployed persons declined by 11.6k to 637.7k in May

• Total labour force expanded by 35.0k to 16.54m

• Labour force participation rate hit new record high of 69.5% in May

• Labour market improves as vacancies fill up

Malaysia’s labour market remained resilient in May as the number of employed persons expanded by 0.3% MoM or 46.5k persons to 15.90m persons. Likewise, on a YoY comparison, the indicator continued to post positive growth for the fifteenth straight month after it expanded by 3.4% during the month. The employment-topopulation ratio which indicates the ability of an economy to create employment, rose by 0.1 ppt to 66.8%. On a YoY basis, the employment-to-population ratio also improved or by 1.4 ppt from 65.4%.

Unemployment rate maintained at 3.9% in May, a 26-month low, consistent with the drop in the number of unemployed persons (1.8% m-o-m; 11.6k) - the lowest since March 2020.

Labour force participation rate expanded for the third straight month to 69.5%, a new record high. Meanwhile, the number of labour force changed over the month was higher by 35.0k persons to record 16.54m persons. On a YoY comparison, the number of labour force improved by 438.9k persons (May’21: 16.10m persons). In the meantime, when compared to the same month of the preceding year, the Labour Force Participation Rate (LFPR) edged higher by 1.0 ppt (May’21: 68.5%).

Source: BIMB Securities Research - 12 Jul 2022