Malaysia’s labour market improved in the second quarter

Malaysia’s labour market showed signs of improvement in the second quarter of 2021 compared to the same quarter last year, but has yet to return to pre-pandemic levels, the Department of Statistics Malaysia (DOSM) has advised.


According to Principal Statistics of Labour Force, Malaysia, Second Quarter 2021, the improvement recorded was due to the allowance of more economic and social activities in comparison to the same period last year. The reopening of secondary schools as well as eateries during the Ramadan month had a particularly positive impact on employment.


Chief Statistician Mohammed Uzir Mahidin said the labour force participation rate increased by 0.2 percentage points to 68.3%. He added that labour productivity increased by 13.6% in the second quarter compared to the marginal drop of 0.4% in the first quarter of this year.

“However, with the revised economic growth forecast, growth is expected to be slower as businesses seek out ways to approach reopening businesses while waiting for Covid-19 case numbers to subside,” he said.

Meanwhile, he also said small and medium enterprises (SMEs) were among the worst hit groups due to lockdowns, consisting of 48% of overall employment in Malaysia.


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