THE labour market increased by 2.4% in the second quarter of 2023, with a record of 16.73 million persons despite slower growth in employment and a smaller decline in unemployed persons, the Department of Statistics Malaysia said today.

Chief Statistician Mohd Uzir Mahidin said the increase was mainly contributed by the 2.8% increment in employed persons, accounting for 16.15 million persons in Q2 2023.

He said the number of unemployed persons declined by 9.5% year-on-year to 581,400, recording the national unemployment rate at 3.5% during the quarter.

“Increased demand for labour by industries has resulted in an increase in employment, although at a slower pace in Q2 2023, leading to a reduction in the unemployment rate compared to a year ago,” he said.

“These circumstances have contributed to positive economic growth amid a challenging global environment by recording a moderate 2.9% increase in Q2 2023 as compared to a growth rate of 5.6% in Q1 2023.”

Uzir said labour participation also recorded the highest rate compared to prior pandemic period, at 70%, which is an increase of 0.8 percentage points from the same quarter last year.

On the labour demand situation in Q2, he said jobs in the private sector rose by 2.4% to 8.83 million.

“Filled positions comprised 97.9% of the total jobs and grew by 2.5% to 8.64 million, while job openings indicated by the number of vacancies comprised another 2.1% of jobs, declining by 0.9% to 189,600 vacancies,” he said.

Uzir said more than half of the job vacancies in Q2 were in the manufacturing sector, which accounted for 108,000 vacancies, largely in the electrical, electronic and optical products sub-sector, which recorded 34,200 vacancies.

He said the improved labour demand situation during the quarter was also indicated by the 8.6% increase in the number of jobs created.

He said the labour market momentum was expected to sustain a steady growth in the upcoming quarter, supported by continued economic development, government initiatives and quality investments that will generate quality and high-paying jobs.

“However, this is subject to various global and domestic challenges arising from unprecedented situations that may occur in the future,” he said. – Bernama, August 25, 2023.