• The unemployment rate edged up to 4.9% in January (Dec: 4.8%), a seven-month high weighed mainly by the impact ofreenforcement of Movement Control Order (MCO 2.0)
  • Unemployed persons (1.2% MoM; Dec: 1.1%): expanded marginally, bringing the total number of unemployed persons to 782.5k (Dec: 772.9k), an eight-month high.
• Employment growth edged up 0.1% MoM (Dec: 0.1%) onnascentrecoveryinthe services, manufacturing and construction sector
  • Labour force: increased and reached a new record high (16.019m persons; Dec: 15.988m).
  • New job creation: expanded to a four-month high (21.9k; Dec: 19.3k).
• Labour force participation rate edged up (68.5%; Dec: 68.4%)
  • Growth of the number of people outside of the labour force fell marginally (-0.1% MoM; Dec: 0.0%)
• Unemployment rate eased in the advanced economies
  • US: unemployment rate edged lower in February (6.2%; Jan: 6.3%), as economic activity picked up amid dropping COVID-19 cases and progress of vaccine rollout.
  • JP: unemployment rate reduced to 2.9% in January from a revised 3.0% in the preceding month underpinned by a recovery in the healthcare and retail sector.
• Unemployment rate forecast retain (4.0%; 2020: 4.5%) on the expectation of gradual economic recovery
  • The labour market is expected to face a bumpy road in the near term due to the impact of MCO 2.0 and prolonged interstate travel banned.
  • However, the progress of the vaccination campaign, expansion in the manufacturing sector, and the impact of fiscal stimulus are expected to support the domestic labour market going forward.

Source: Kenanga Research - 9 Mar 2021