In November, Malaysia witnessed a significant rise in total employment and the employment-to-population ratio, reflecting robust labor market conditions. According to the Department of Statistics Malaysia (DOSM), the number of employed persons in the country reached 16.75 million, an increase from 16.72 million in October and a notable rise from 16.43 million a year prior. Total employment in Malaysia has been on a steady upward trajectory since mid-2021, after a brief dip during the pandemic.
These figures underscore the resilience of the Malaysian labor market, which has been resilient despite global economic challenges. Moreover, the employment-to-population ratio recorded 68.3% in November, a solid improvement from 67.8% a year earlier. This ratio is crucial as it represents the percentage of the adult population that is gainfully employed, highlighting the effectiveness of the labor market in mobilizing the nation's workforce. The trend of declining unemployment continues, with Malaysia's unemployed population decreasing to 546,700 in November, down from 551,400 in October and significantly lower than the 569,200 recorded a year ago.
The unemployment rate remained stable at 3.2%, unchanged from October but an improvement from 3.3% a year earlier. Looking ahead, the outlook for the Malaysian labor market appears optimistic. Economic growth is anticipated to drive an increasing demand for labor. In mid-November, Bank Negara Malaysia, the central bank of the country, reported a GDP growth of 5.2% in the first three quarters of 2024 compared to the previous year.
Furthermore, the Ministry of Finance has projected GDP growth between 4.5% to 5.5% for the year 2025, signaling a positive trend for investment and job creation in the nation. With these insights, investors and stakeholders can better understand the evolving labor landscape in Malaysia, capitalizing on the growth opportunities presented in a thriving economy..