KUALA LUMPUR: The Malaysian labour market is expected to remain stable throughout this year, largely due to the anticipation of continuous growth in economic activities driven by robust domestic demand.
According to Kenanga Investment Bank Bhd (Kenanga IB), this expectation is also reflected by the ongoing growth in employment recently observed.
"This is largely due to the anticipation of continuous growth in economic activities driven by robust domestic demand, as we project gross domestic product (GDP) growth to expand to 3.3 per cent in the first quarter of 2024," the investment bank stated.
Kenanga IB's survey is also aligned with the expectation of growth of 3.0 per cent in the second quarter of 2024, with the overall GDP growth forecast for this year at 4.5 to 5.0 per cent compared to 3.7 per cent in 2023.
"Additionally, the expectation of recovery in the manufacturing sector is driven by the adoption of new technologies and the realization of approved investments recorded last year to further enhance hiring activities in the upcoming months," it added.
The firm also noted that employment growth continues to steadily expand for 31 months with a 0.2 per cent month-on-month (MoM) growth, unchanged for the fifth consecutive month.
"According to sectoral data from the Department of Statistics Malaysia (DOSM), there has been a broad increase in employment across sectors. Particularly in the services sector, job gains were recorded in wholesale and retail trade, food and beverage services, as well as transportation and storage activities," it said.
Regarding unemployment, Kenanga IB informed that survey results found the youth unemployment rate, aged between 15 and 24 years, remained at 10.6 per cent in February for the fourth consecutive month, totaling 306,600 individuals.
"Furthermore, skill-related unemployment stands at 37.4 per cent, reaching a record high of 1.94 million in the fourth quarter of 2023," it said.
The investment bank noted that the unemployment rate remained unchanged for the fourth consecutive month in February at 3.3 per cent, matching pre-pandemic levels.
In absolute terms, the number of unemployed individuals in February fell to 567,000 compared to January's 567,000, marking the lowest level since February 2020, which recorded 525,200.
Additionally, active unemployment decreased slightly to 452,400 compared to January (452,500), indicating the lowest level since March 2020, which recorded 422,900.
