Labour Demand Up 70.4 Pct, Unemployment Rate Down 3.3 Pct In 2024 - DOSM

PUTRAJAYA, Feb 10 (Bernama) -- The labour force participation rate (LFPR) in 2024 increased to 70.4 per cent compared to 70 per cent the previous year, according to Labour Force Statistics, Malaysia, December and fourth quarter 2024.

Chief Statistician of the Department of Statistics Malaysia (DOSM) Datuk Seri Dr Mohd Uzir Mahidin said that during the same period, the unemployment rate dropped to 3.3 per cent in 2024, compared to 3.4 per cent the previous year.

“The Malaysian economy is seen to remain on a positive growth trajectory in 2024, driven by strong economic performance despite ongoing external uncertainties.

“In line with this performance, the country’s labour market position continues to show good growth momentum throughout the year, driven by encouraging economic growth,” he said.

He said that the Malaysian labour market performed well throughout the past year, with unemployment remaining low while employment witnessed a steady increase.

Mohd Uzir said the country’s positive labour market last year was partly contributed by the continued labour demand across various sectors, especially in the private sector, which witnessed an increase in job opportunities.

“The outlook for the Malaysian labour force this year is encouraging, with employment seen to continue to increase consistently, while unemployment is expected to remain low.

“Key sectors such as manufacturing, especially electrical and electronics, as well as the services sector will drive job creation,” he said.

Commenting on the performance of the labour market in the fourth quarter of 2024, he said the number of manpower showed an upward trend, showing an increase of 0.4 per cent to 17.34 million people compared to 17.26 million people in the previous quarter.

In line with that, he said the number of employed people increased by 0.5 per cent to 16.79 million people compared to 16.72 million people in the third quarter of last year.

The number of unemployed decreased by 0.2 per cent to 546,900 people compared to 547,900 in the previous quarter, with the unemployment rate remaining at 3.2 per cent compared to the third quarter of 2024.

In terms of unemployment rates and LFPR by state, Mohd Uzir said Selangor and Kedah recorded the lowest unemployment rates of 1.7 per cent in the fourth quarter of 2024, followed by Melaka (1.8 per cent), as well as Johor and Penang at 2.2 per cent each.

Nine states recorded an increase in the LFPR, indicating more labour participation in the market, with Selangor recording the highest LFPR at 76.4 per cent, followed by Kuala Lumpur (74.9 per cent) and Penang (73.2 per cent).

Meanwhile, he said for December 2024, the workforce remained on an upward trend with an increase of 0.1 per cent to 17.32 million people compared to 17.29 million people in November 2024.

The unemployment rate for that month, he said, reached the lowest rate in 116 months at 3.1 per cent with 544,300 unemployed people recorded, compared to 3.2 per cent in November 2024.

The last time an unemployment rate of 3.1 per cent was recorded was in May 2015.

“By the end of 2024, the Malaysian economy showed resilience and strong growth.

“Therefore, the labour market also performed well, with the unemployment rate continuing to decline in December 2024. Employment recorded stable development and the number of unemployed continued to decrease,” he said.

Commenting further on the employment situation, Mohd Uzir said that in December 2024, the category of workers, which represented 74.9 per cent of the total working population, showed an increase of 0.1 per cent to 12.56 million people compared to 12.54 million people in the previous month.

Similarly, the self-employed population category is also on an upward trend, with an increase of 0.4 per cent to 3.12 million people compared to 3.11 million people in November 2024.

“In terms of the economic sector, the number of people working in the service sector increased steadily, especially in wholesale and retail trade activities; arts, entertainment and recreation; and accommodation and food and beverage services.

“At the same time, the manufacturing, construction and agriculture sectors also recorded positive employment growth, while employment in the mining and quarrying sectors decreased during the month,” he said.

-- BERNAMA