Job seekers at a job fair in Perak earlier this year. The government has created 462,051 new job opportunities through 27 initiatives from January to October this year and the figure is set to hit 500,000 by December.
THE Covid-19 pandemic was ruthless when it hit, wiping out 81 million jobs across the Asia-Pacific region in 2020.
The highly infectious virus left businesses no choice but to trim their workforce and many even shut down for good.
At its worst, Malaysia’s unemployment rate hit a peak of 5.3% in May last year. Around 826,100 people lost their jobs.
To cushion the blow, the Government stepped in with various measures spread out through several stimulus packages, from wage subsidies to hiring incentives, to get companies to retain or hire staff.
A total 462,051 new job opportunities were created through 27 initiatives from January to October this year and the government is on track to achieve its target of 500,000 by December.
The latest figures from the Statistics Department as of September showed that the unemployment rate had eased to 4.5%, which is about 729,600 unemployed people.
New entrants to the labour market over last year and the current year is roughly estimated at 300,000 per annum. Amid the global gloom, Malaysia’s job market is seen to be among the better performing in the region, due to its rapid Covid-19 vaccination rate and the reopening of economic activities across the country.
Jobs with JaminKerja
Job creation and retention remains top agendas in the recently tabled Budget 2022, with the Jamin Kerja Keluarga Malaysia (JaminKerja) initiative to bring jobs back to the people.
With an allocation of RM4.8bil, JaminKerja is upping the ante with a guarantee of 600,000 job opportunities, via employment incentives, Malaysia Short Term Employment Programme, as well as upskilling and reskilling programmes.
A sum of RM2bil will be channelled through the Social Security Organisation to implement wage subsidies to encourage employers to expand their workforce.
A subsidy of 20% of the worker’s salary for the first six months and 30% for the next six months will be provided to employers who hire Malaysians who have not been actively employed – subject to jobs with a salary of at least RM1,500.
For those who recruit workers from vulnerable groups – such as the disabled, ex-convicts, army veterans and those aged above 50 – the incentives are 30% for the first six months and 40% for the next six months. The same incentive is extended to the hiring of women, including single mothers, those who have been unemployed for over a year and those on flexible working arrangements.
Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said the measures were in line with what employers wanted to enable them to create more employment.
“Budget 2022 addresses the needs of all, which is vital in ensuring no individuals and businesses are left behind, especially those badly affected by the movement control order in 2020 and 2021.
“Incentivising employers to hire members of specific groups is also something that is most welcomed.
“The MEF is of the view that all these initiatives would be able to reduce the unemployment rate to 4%, the rate at which Malaysia will be considered as having full employment, under the definition of the International Labour Organisation,” he said.
Job sustainability
More than just bringing back jobs, Budget 2022 is also set to go a step further in ensuring the sustainability of the future workforce.
This comes in the form of a RM1.1bil allocation targeting 220,000 people for upskilling and reskilling programmes.
UOB Malaysia senior economist Julia Goh is slightly more positive, projecting that the unemployment rate could dip to 4.2% for 2021 and down to 3.6% next year.
Both figures are more optimistic than the Finance Ministry’s projections of between 4.6% to 4.8% and 4.0% respectively.
She said the recovery of the labour market is expected to gain a firmer footing in the fourth quarter of 2021 and heading towards 2022, underpinned by an almost full economic re-opening of the whole country, positive vaccination progress and the allocation in Budget 2022 to generate and sustain jobs.
“Based on recent improvement in unemployment trends, we think it is possible for unemployment rates to edge below 4% next year.
“Anecdotal evidence suggests that hotel, accommodation and F&B sectors have experienced issues in rehiring workers.
“And with the gig economy, we think more people in the labour force are exploring opportunities and work choices,” said Goh.
