• The labour market continued its positive momentum, showing a consistent increase in employment nationwide. In June 2024, employment grew by 1.8% YoY and 0.2% MoM, bringing the total workforce to 16.61mn individuals.

• Increasing tourism activity during the month, along with the upcoming ‘Visit Malaysia 2026’, that aims to attract more tourists from abroad over the upcoming year, has improved the tourismrelated industries. Thus, the increase in tourism-related industries has contributed to the expansion of Malaysia’s businesses as well as the job opportunities. Particularly, the services sector continued to exhibit increases in the number of employed persons, especially in wholesale & retail trade; food & beverage services; and information & communication activities. A similar trend of employed persons was also observed in the manufacturing, construction, mining & quarrying and agriculture sectors.

• Meantime, the number of unemployed persons continued its decline, decreasing by 2.8% YoY to 565.3k individuals (May24: 566.1k persons), gradually approaching the pre-pandemic levels of 519k in 2019. On a monthly basis, the number of unemployed people decreased by 0.1%. During the month, the jobless rate stood at 3.3%, the same rate seen in the previous month.

• The labour force (encompassing both employed and unemployed individuals) saw MoM expansion of 0.1% MoM or a YoY growth of 1.7% in June 2024, reaching a total of 17.17mn individuals. This growth suggests a healthy level of engagement in the labour market, with labour force participation rate at 70.4%.

• Meanwhile, the number of individuals outside the labour force remained relatively stable on an annual basis, where there was a minimal MoM decline of 0.02%, totaling 7.23mn persons. Among those outside the labour force, 42.8% cited housework and family responsibilities as their primary reason for not participating in the labour market, followed closely by schooling and training at 41.4%.

• Our perspective: Malaysia’s economy is showing steady growth, driven by strong domestic and export activities, an improved job market, and positive trends in the agriculture and construction sectors. The uptick in business activities is expected to attract more investment and trade, further enhancing job creation and positively impacting the labour market. Consequently, the country’s labour market is expected to maintain a stable growth trajectory, supported by a strong economic position, increasing tourist arrivals, and growth across all sectors. Our projections suggest a potential decrease in the unemployment rate to 3.2% by year-end. Additionally, the labour force and employment figures are expected to rise by 1.7% and 2.0%, respectively, while unemployment is forecasted to decline by 5.2% over the year.

Source: TA Research - 12 Aug 2024