Malaysia’s job market, which has been on a growth trajectory so far this year, could face uncertainty due to local and global factors, reports The Star Malaysia, citing research from the Malaysian Industrial Development Finance Berhad (MIDF). MIDF Research in a report said Malaysia’s labour market is anticipated to strengthen further in 2023 and 2024, backed by positive impetus in the domestic economy. It said the country’s average unemployment rate is expected to decline further to 3.5% in 2023 and return to the pre-pandemic levels of 3.3% in 2024. “The return of non-citizen workers is expected to boost overall employment and reduce the jobless rate,” the MIDF stated. “Continued improvement in the labour market will support consumer spending as the wage recipients-to-employment ratio had reached a new peak of 64.5% back in 2021, among others, thanks to the minimum wage salary policy.”

Malaysia University of Science and Technology economics professor Geoffrey Williams, meanwhile, pointed out that low unemployment rates are not always a healthy sign. Williams further explained that skills-related underemployment is at 1.9 million, which is 6.4% higher than 12 months ago and at levels last seen during the Covid-19 pandemic. Williams added that half of Malaysians on formal contracts earn less than the living wage. Meanwhile, Centre for Market Education chief executive officer Carmelo Ferlito said Malaysia’s job market performance so far this year has been within expectations.