The Unemployment rate of Malaysia attained a value of 3.70 % in 2023
The indicator recorded a historical change (bps difference) of 80 bps between 2020 to 2023, and is expected to decline by...
GlobalData projects the figure to change by 11 bps between 2024 and 2028, reaching...
Unemployment
Unemployed people are those that are actively looking for work but are having no luck. The unemployment rate is derived by dividing the total number of unemployed people by the total population of a certain region or workforce. It is one of the most important measures of a country's economic health.
Global Unemployment
The International Labour Organization estimates that by the end of 2021, the average regional unemployment rate will be 9.6%, down from the 10.6% it reached in 2020 but up from the 8% that was noted in 2019, which is used in this case as a benchmark to determine the impact of the pandemic's first two years.
The Organization for Economic Cooperation and Development (OECD) reported that the unemployment rate in OECD regions fell below the pre-pandemic rate when its February 2022 unemployment numbers were published in April 2022. Since this data series' inception in 2001, this is its lowest point. Additionally, the OECD region's unemployment rate decreased further, dropping by 0.7 million to 34.9 million people.
Unemployment Rate of Malaysia
The unemployment rate in Malaysia in 2021 stood at 4.6%. Between 2018-2021, the unemployment rate in Malaysia was highest in 2021 at 4.6% and lowest in 2018 and 2019 at 3.3%. The unemployment rate increased by 3.9% on a year-on-year basis in 2021 and increased by 41.6% between 2018-2021.
In 2021, unemployment increased to 4.7% due to jobless growth and the resurgence of COVID-19 throughout 2021. According to the Department of Statistics Malaysia (DOSM), the number of unemployed in Malaysia declined to 680,400 persons, with the unemployment rate at 4.2% in January 2022. With the increase in business activities, demand for labor increased resulting in a fall in the unemployment rate. GlobalData forecasts the unemployment rate at 4.5% in 2022.
According to World Bank, among major Asian economies, Malaysia has the highest youth unemployment rate of 14% in 2020, compared to China (11.9%), the Philippines (7%), and Japan (4.6%).
Factors that Cause Unemployment
Some of the key factors that affect unemployment in a nation are recession, government policies, geographic labor mobility, technological breakthroughs, the global economy, growing populations, and worker education, training, and skill development.
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