Job market likely to recover in the coming months, says MIDF Research

 

 The job market is likely to recover in the coming months, backed by increasing domestic-oriented business activities and labour demand due to the improved domestic spending.

MIDF Research said the relaxation of restrictions following improved Covid-19 situation and encouraging progress in the vaccination programme would allow greater mobility.

"Therefore, this will support higher spending activity in the fourth quarter of 2021, with the ban on interstate travels expected to be lifted soon," said MIDF Research in a report recently.

However, the recovery may be gradual as the latest data on loss of employment increased to 5,415 in September 2021 compared to 4,326 in July 2021, where most job losses in the recent two months were recorded in manufacturing, wholesale and retail trade sectors.

"We expect the improving domestic spending will lead to better hiring in the wholesale and retail trade, while the growing external demand will support the employment outlook in the manufacturing sector."

MIDF Research said manufacturing employment might be constrained by ongoing supply chain bottlenecks, potentially weaker external demand, and rising production costs given higher commodity prices and global logistic issues.

"Overall, anticipating a continued recovery in Malaysia's job market in the fourth quarter (Q4) of 2021, we maintain our projection for the national unemployment rate to average around 4.5 per cent this year," said MIDF Research.

Labour market condition improved in August 2021 as Malaysia's economy gradually recovered from the impact of full lockdown as states were allowed to transition to the next phases in the National Recovery Plan (NRP).

With the gradual relaxation of the lockdown restrictions, the labour market began to recover, pushing the jobless rate lower to 4.6 per cent in August 2021.

Total unemployment fell by 3.8 per cent month-on-month (MoM) in August to 748,800 from 778,200 recorded in July 2021.

Nonetheless, MIDF Research said total employment rose to a new high with the overall employment recovered rising by +0.5 per cent MoM, reaching a new high of nearly 15.4 million people.

Source

https://www.nst.com.my/business/2021/10/735453/job-market-likely-recover-coming-months-says-midf-research