Malaysia’s unemployment rate declined to 3.5% in February 2023, an improvement from 3.6% in the previous months, signalling a stable labour market recovery.
According to the Department of Statistics Malaysia, the number of unemployed individuals decreased to 591,900 from 596,100 in January.
All economic sectors reported increased hiring, with the services sector leading the growth. The employment-to-population ratio reached an all-time high of 67.4%.
However, the labour market still faces challenges such as increased labour force participation and constrained wage growth.
Despite these challenges, economists from UOB Global Economics and Markets Research maintain a year-end unemployment rate projection of 3.2% for 2023, more optimistic than Bank Negara Malaysia’s 3.3% estimate.
MIDF Research also expects the domestic labour market to strengthen further in 2023, supported by continuous upbeat momentum in the domestic economy and modest expansion in the external sector.
