Malaysia’s unemployment rate edged up year-on-year by 0.8% to a rate of 4.7% in March 2021, according to data from the Department of Statistics Malaysia.

When compared to the previous month, the unemployment rate fell slightly by 0.1%.

Overall, the number of unemployed persons stood at 753,200 in March, this was up 23.4% from the previous year and down 3.1% from the previous month.

The number of employed persons in Malaysia stood at 15.33 million in March 2021, up 0.6% from the previous year and up 0.4% from the previous month.

Meanwhile, the country’s labour force participation rate stood at 16.08 million, up 1.5% from the previous year and up 0.2% from the previous month.

On 17 March 2021, the government launched a new stimulus package named the Strategic Programme to Empower the People and Economy (PEMERKASA). The initiative is aimed at restoring and empowering the economy amid the pandemic.

March 2021 marked one year after the first Movement Control Order was implemented beginning on 18 March 2020 prompting a new norm since the spread of Covid-19 in Malaysia. Unlike MCO 1.0 where most economic activities as well as national and interstate borders were closed, March 2021 saw most states in a Recovery Movement Control Order while several others were in a Conditional Movement Control Order.

“Further recovery in Malaysia labour force may be more certain with the resumptions of most business activities coupled with the expansion of Covid-19 vaccination programme to a larger community. Nevertheless, this positive momentum will subject to the uncertainties in the country’s health condition and subsequently the economic performance,” the Department stated.

According to SIA’s Most Attractive Staffing Markets Globally research report published in March 2021, Malaysia was ranked as the most attractive staffing market alongside India compared to over 60 staffing markets assessed across six continents.