THE labour market in Malaysia is expected to strengthen further in 2023 and 2024, backed by encouraging momentum in the domestic economy, MIDF Research said.

“Malaysia’s average unemployment rate is expected to decline further to 3.5% in 2023 and return to pre-pandemic levels at 3.3% in 2024.

“The return of non-citizen workers is expected to boost overall employment and reduce the jobless rate,” MIDF Research said today.

As of the second quarter of 2023, non-citizens’ employment is almost 2.7% lower than pre-pandemic levels. 

MIDF Research noted that employment as of the first eight months of the year grew by 2.5% year-on-year (2022: +3.5%), while unemployment reduced by -9.8% year-on-year (2022: -14.8%) and the jobless rate averaged at 3.5% (2022: 3.8%). 

“Continued improvement in the labour market will support consumer spending as the wage recipients to employment ratio reached a new peak at 64.6% in 2022, among others, thanks to the minimum wage salary policy,” it said. – Bernama, October 10, 2023.