KUALA LUMPUR: The unemployment rate in January 2021 increased slightly to 4.9 per cent against 4.8 per cent in December 2020, said the Department of Statistics Malaysia (DOSM).

Chief statistician Malaysia Datuk Seri Dr Mohd Uzir Mahidin said the labour market remained in a challenging situation following the rising number of COVID-19 cases.

"The reintroduction of the Movement Control Order in most states, with only five essential economic sectors allowed to operate, and restricted inter-state and inter-district travel activities indirectly led to an uneven recovery momentum of businesses and the labour market," he said based on DOSM's 'Key Statistics of Labour Force in Malaysia, January 2021', released today.

Mohd Uzir, however, said the reopening of essential services of the five economic sectors provided some balance between economic consequences and public health while adapting to the new norm.

Therefore, he said, the labour market remained in modest condition and recovered slightly in January 2021, reflected by the increase in the number of labour force during the month.

The statistics, which was based on a labour force survey, also revealed that the rise in employed persons was much higher than those who were unemployed, signalling some improvement in the labour demand by businesses.

The labour force in January 2021 went up by 0.2 per cent to record 16.02 million persons as compared with 15.99 million persons in December 2020.

A slight increase in labour force participation was observed during the month with a rate of 68.5 per cent as compared with 68.4 per cent in December 2020.

"The continuous increase in the number of unemployed persons was partly due to a review of businessstrategies in tourism-related industries which consist of accommodation and food services, passenger transportation, entertainment and recreational activities," said Mohd Uzir.

By economic sector, the number of employed persons in the services sector persistently increased month-on-month, particularly in wholesale and retail trade, human health and social work, and education activities.

Meanwhile, employment in tourism-related industries continued to decrease, portraying that these industries were hard hit by the pandemic.

Employment in the manufacturing sector remained positive for the third month, while the construction sector also registered an increase.

Agriculture, mining and quarrying sectors, however, were constantly recording a decline in employment since the past seven months.

Looking at the health crisis situation in early 2021, the labour market is expected to face a bumpy ride in the first quarter.

Nevertheless, with the first phase of the nationwide vaccination programme under way on Feb 24, this effort seemed to give some positive insight into the health crisis.

In support of efforts to curb the spread of COVID-19 infections in the country, DOSM has reopened its online census platform (e-Census).

Further information on the Malaysia Census 2020 can be obtained through the census portal, www.mycensus.gov.my, or social media handle @MyCensus2020.

-- BERNAMA