Unemployment larger in January as tourism industries hit

KUALA LUMPUR: The unemployment rate in January rose from 4.8% in December to 4.9%. This is due to the tourism industries affected by Covid-19, which saw a decline in the agricultural sector despite growth in the manufacturing and service sectors.

The statistics department announced on Monday that the unemployment rate rose by 9,700 in January from 772,900 in December to 782,500.

“The steady rise in the number of unemployed was partly due to the review of business strategies in the tourism industry, which consist of accommodation and catering services, passenger transportation, entertainment and recreational activities,” it said.

The chief statistician Datuk Seri Dr. Mohd Uzir Mahidin said the labor market has remained in a challenging position after the rising number of new cases of Covid-19, with driving restrictions in place from January 13 to February 4.

During this phase, only five major economic sectors were allowed to operate, while interstate and interdistrict travel activities were restricted. Indirectly, this situation has led to an uneven recovery of companies and, consequently, of the labor market.

Commenting on the labor force, he said the increase in employment has outpaced the unemployed; This signals some improvement in corporate labor demand.

“The labor force rose by 0.2% in January with an additional 31,500 people to 16.02 million people (December 2020: 15.99 million people). With a rate of 68.5% (December 2020: 68.4%), a slight increase in labor force participation was observed over the course of the month, ”he said.

Commenting on the higher unemployment rates in January, Mohd Uzir said this was partly due to the review of business strategies in tourism industries, which consist of accommodation and catering services, passenger transportation, entertainment and leisure activities.

According to economic sectors, the number of employees in the service sector increased compared to the previous month, especially in wholesale and retail. Human health, social work and education activities.

He said manufacturing employment grew for the third month while the construction sector also saw an increase.

However, the agriculture, mining and quarrying sectors continued to decline in the seventh month.

Regarding the general workforce situation, he said: “Despite the implementation of MCO 2.0, the essential services of five economic sectors were allowed to work as usual in compliance with strict standard operating procedures.

“This has allowed for some balance between the economic impact and public health while adapting the new norm. With a view to the health crisis situation in early 2021, it is expected that the labor market will face a somewhat bumpy road in the first quarter.

“However, when the first phase of the vaccination program began on February 24th, these efforts seemed to provide a positive insight into the health crisis situation in Malaysia.

“In addition, the various initiatives under the PENJANA, PRIHATIN and PERMAI aid package can support the survival of companies and improve the workforce.

“With these efforts, the uncertainties in the labor market may decrease and, as a result, the labor market recovery may accelerate.”