Socso Report Expects Labour Market to Improve in Q2 2021

The Social Security Organisation (Socso) projected Malaysia's labour market performance to improve in the second quarter (Q2) of 2021. It also estimated the unemployment rate at 4.6% compared to 4.8% in the first quarter (Q1) of 2021 and the fourth quarter of 2020.

The projection is a part of the "Quarterly Labour Market Perspectives-Stabilisation of Labour Market in the Post-Crisis Periods" report Socso issued yesterday.

 

Stable recovery in early 2021

The Human Resources Minister Datuk Seri M. Saravanan stated the report found that the labour market performance in Q1 of 2021 showed stable recovery after the unemployment rate remained the same at an average rate of 4.8% in Q1 of 2021 and Q4 of 2020. 

In a statement on the labour market report, he said that the stability is supported by a drop in the job loss rate among private-sector workers, which fell by 12%. 

The minister said the implementation of the Movement Control Order (MCO) in Q1 2021 did not affect Malaysia's labour market due to a more targeted approach to the MCO implementation. 

Some labour market segments are still affected and are in the early stages of recovery, particularly the informal employment sector and tourism sector. 

According to him, the report also found that the job market recovery in Q1 2021 was in the form of a 'trapezoid', reflecting the trend of persistent imbalance between job seekers and employment opportunities. He said that it shows Malaysia's labour market situation has not changed compared to Q4 2020, where there is an excess supply of workers compared to the existing job opportunities. 

The report projected that the job creation for the professional, manager, executive and technician (PMET) categories to grow slowly compared to the number of job seekers in the same category. 

 

Effects of the full MCO

Saravanan said the effects of the full MCO implementation from June 1 on the labour market could only be seen in Q3 2021.  

He said that government initiatives such as the PenjanaKerjaya 3.0, Wage Subsidy Programme (PSU) 4.0, and Jobseeking Allowance under PEMULIH could help reduce the impact of the full MCO implementation.

He added that the Ministry of Human Resources would perform various appropriate interventions to further intensify Malaysia's recovery process, specifically in catalysing the labour market. 

 

The report's background

The EIS-UPMCS Centre for Future Labour Market Studies (EU-ERA) prepared the report. EU-ERA is a collaborative research centre between Universiti Putra Malaysia Consultancy & Services (UPMCS) and Socso's Employment Insurance System Office. 

You can download the report at https://eiscentre.perkeso.gov.my/reports-articles/.

Source: BERNAMA

 

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