The department of statistics Malaysia (DoSM) said the operation of all economic sectors and social activities contribute to increasing demand for labour but are also subject to impending effects of inflationary pressures globally.
Chief statistician Uzir Mahidin cited the zero-Covid policy implemented by China as one of the factors that may have a negative impact on recovery.
“The policy has resulted in shortcomings and delays in the supply of materials and that has affected the global market, especially in the manufacturing sector,” he said.
Malaysia recorded an unemployment rate of 3.9% in May, the same as in the previous month.
Uzir said the recovery of the labour market continued to be stable, driven by the revival of economic activities.
Encouraging economic activities during the month stimulated the demand for goods and services, providing more opportunities for businesses to revive their revenue streams.
He said the entry of foreign labour into the country to ease the labour shortages in certain industries is seen as a positive element.
“This will ensure that the labour market remains stable even though it will lead to higher competition,” he said.
Uzir said the number of employed persons rose in May by 0.3% to 15.9 million, while the number of unemployed persons during the month declined by 1.8%, helping the unemployment rate stay at 3.9%.
At 76.2%, “employees” comprise the largest proportion of employed people. It saw a rise of 0.2% to 12.11 million persons.
In the “own-account workers” category, which consist mostly of daily income earners working in small businesses such as retailers, hawkers and stallholders as well as smallholders, employment rose 0.7% to 2.74 million persons.
The services sector continued to record a growth in employment. Similarly, the agriculture, manufacturing and construction sectors retained their positive trend. However, the mining and quarrying sector continued to see a decline.
Uzir said the youth unemployment rate had dropped by 4.4%, while those actively seeking jobs comprised 83.7% of all unemployed people.