Unemployment rate sees downward trend in July, approaching pre-pandemic levels

Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed said the achievement was much better compared to the 4.5 per cent recorded in 2021 and 4.2 per cent in January 2022.

The number of unemployed persons continued to decrease to 620,700 people in July 2022 compared to 630,600 people in the preceding month, while the number of employed people in July 2022 continued to record a positive growth of 0.3 per cent to 15.98 million people, he said.

"According to the economic sector, the number of people working in the service sector is increasing, especially in food and beverage service activities; wholesale and retail trade; administrative activities, and support services.

"Employment in the manufacturing and construction sectors also showed an increase, except for the agriculture as well as mining and quarrying sectors which recorded a decrease in employment," he said in a statement today.

Mustapa said the position of the labour force in July 2022 also improved following a continuous increase in the number of workers by 0.2 per cent month-on-month recording 16.60 million people.

Therefore, the higher labour force participation rate (KPTB) was recorded in that month at 69.6 per cent, he said.

He said the achievement of a stronger labour market was supported by an improved economic position for the second quarter of 2022 with economic growth strengthening at 8.9 per cent.

For the first half of 2022, the national economy grew by 6.9 per cent.

"Increased economic and social activities that have returned to normal, especially following the opening of national borders since April 1, 2022, have a positive impact on the country's labour market which has created more job and business opportunities.

"The labour market recovery momentum is also in line with the implementation of government initiatives under the leadership of the Prime Minister, such as the JaminKerja-Wage Incentive (JKIP) and creation of the national employment portal, MyFutureJobs," he said.

Mustapa said the government will continue with efforts to increase employment opportunities and improve the well-being of Keluarga Malaysia.

He predicts the labour market will continue to strengthen during the third quarter of the year with better business performance expected.

"The confidence indicator recorded 4.7 per cent for the third quarter of 2022 compared to 3.5 per cent in the second quarter.

"This shows that the economic situation is expected to be better in the third quarter of this year," he added.