KUALA LUMPUR: Malaysia's labour market continued to improve in the second quarter of 2024 (Q2 2024), with the unemployment rate remaining steady at the pre-pandemic 2019 average of 3.3 per cent for the third consecutive quarter. 

This progress occurred even as the labour force grew by 186,600 (or +1.1 per cent quarter-on-quarter, QoQ), marking the largest increase since Q3 2013 and reaching a record high of 17.15 million in Q2 2024, according to UOB. 

In comparison, Q1 2024 saw a more modest rise of 50,600, or +0.3 per cent QoQ, to 16.96 million.

Total employment also hit a new record of 16.59 million, increasing by 190,000, or 1.2 per cent QoQ, the largest gain since Q3 2020. 

This growth was mainly driven by the hiring of semi-skilled (+144,000) and low-skilled (+23,300) workers, especially in the services sector, while the recruitment of skilled workers rose by 22,600.

The formal sector contributed nearly 70 per cent of the total employment gain last quarter, followed by the informal/gig sector (25 per cent) and unpaid family workers (around 5.0 per cent).

Overall, the labour market's improvement was supported by increased economic activities, the realisation of approved investment projects, the implementation of national master plan initiatives, and the government's ongoing employment measures.

"We expect these drivers to remain in place to underpin the labour market outlook in 2H 2024 and into 2025. Taking cues from the seasonally adjusted unemployment rate of 3.2 per cent in June (May: 3.3 per cent) and higher gross domestic product (GDP) growth for Q2 2024, we tweak our 2024 year-end jobless rate forecast slightly lower to 3.2 per cent (from 3.3 per cent previously, Bank Negara Malaysia estimate: 3.3 per cent, end-2023: 3.3 per cent).

https://www.nst.com.my/business/corporate/2024/08/1090194/uob-labour-force-malaysia-tops-171-million-first-time-history