It was reported that Malaysia’s labour market is already near full employment levels and is expected to remain stable, though economists flagged that youth joblessness remains elevated.
Steady domestic economic growth, realisation of approved investments, and record government spending are expected to spur job creation and keep the unemployment rate near 3% for this year, said the economists, including those from Kenanga Investment Bank and Maybank Investment Bank.
“Looking ahead, 2025 is poised to bring continued labour market stability, bolstered by stronger domestic growth and improved trade prospects,” said BIMB Securities. The unemployment rate is expected to remain “healthy”, the house said.
Malaysia’s November 2024 unemployment rate remained steady at 3.2%, a level generally considered by economists as full employment, according to the latest data. The number of jobless people decreased, while the labour force expanded.
Unemployment of youth, defined as those between 15 and 24 years old, was unchanged at 10.4%, with more than 300,000 youths out of work, while the unemployment rate of the broader 15-to-30 age group declined to 6.2%, with 415,600 unemployed.
Joblessness among youth appears “sticky” despite recent improvements, Maybank Investment Bank said, noting that the rate was still above the pre-pandemic low of 9.9%. Overall, however, the house expects the unemployment rate to average 3.3% in 2024, and improve to 3.2% in 2025.
Coupled with Budget 2025 measures, including civil servants’ pay rise and an increase in the national monthly minimum wage, the outlook for consumer spending is positive, Maybank added. – The Edge Malaysia
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