Overview

INTRODUCTION

Entering the final quarter of 2021, most states were in the Phase 4 of the National Recovery Plan (NRP); with the adult vaccination rate reaching 95.5 per cent. Subsequently, in November 2021, another five states, namely Perlis, Perak, Pulau Pinang, Sabah & Kedah had moved into Phase 4 of NRP while Kelantan and Sarawak remained in Phase 3 and the adult vaccination rate had reached approximately 98.3 per cent.

These transitions during the quarter led more business and social activities to resume with longer business operating hours including domestic & abroad tourism and the Creative Industries activities for fully vaccinated individuals.Religious activities, outdoor sports and recreational activities as well as social activities such as festive celebrations, weddings or engagements, birthday celebration, and reunions were allowed in compliance with standard operating procedures (SOPs). 

In the same time, interstate travelling was allowed effective on 11 October 2021. These encouraging circumstances had stimulated some positive growth to the economy together with the labour force situation in this quarter. This meant that healthy employment growth would continue in the fourth quarter while the unemployment rate may continue to decline.

LABOUR FORCE

LFPR INCREASED TO 68.7 PER CENT , HIGHEST RECORDED SINCE Q2 2020 BUT REMAIN BELOW ITS PRE-PANDEMIC RATIO 

In the fourth quarter of 2021, labour force increased by 0.7 per cent or 114.0 thousand persons to record 16.14 million persons (Q3 2021: 16.02 million persons). Likewise, the labour force participation rate (LFPR) escalated by 0.4 percentage points to 68.7 per cent as compared to the previous quarter. This was the highest LFPR recorded since the second quarter of 2020 but remained below its pre-pandemic ratio (Q1 2020: 68.8%).

The employment-to-population ratio which indicates the ability of an economy to create employment recorded an increase of 0.6 percentage points to 65.7 per cent (Q3 2021: 65.1 %). Meanwhile, the number of outside labour force declined by 68.6 thousand persons to record 7.36 million persons. [Exhibit 1]

Year-on-year, labour force registered an addition of 212.7 thousand persons (Q4 2020: 15.92 million persons) while LFPR went up by 0.2 percentage points from 68.5 per cent (Q4 2020).

Exhibit 1: Principal Statistics of Labour Force, Malaysia, Fourth Quarter of 2020, Third Quarter of 2021 & Fourth Quarter of 2021

EMPLOYED PERSON

EMPLOYED PERSON INCREASED FURTHER BY 1.1 PER CENT

The number of employed persons posted a quarter-on-quarter increase of 1.1 per cent (+165.8 thousand persons) to 15.44 million persons in the fourth quarter of 2021 (Q3 2021: 15.27 million persons). Concurrently, employed persons increased by 1.8 per cent or equivalent to 279.0 thousand persons as compared to the fourth quarter of 2020 (Q4 2020: 15.16 million persons).

By educational attainment, employed persons with secondary education recorded the highest share of 55.9 per cent (8.63 million persons). This was followed by employed persons with tertiary education which made up a share of 31.8 per cent or 4.91 million persons. [Chart 1] 

Chart 1: Employed Person by Educational Attainment, Malaysia, Third Quarter of 2021 & Fourth Quarter of 2021, (‘000) 

UNEMPLOYMENT

UNEMPLOYMENT RATE DECREASED TO 4.3 PER CENT IN THE FOURTH QUARTER OF 2021 

In the fourth quarter of 2021, the unemployment rate dropped by 0.4 percentage points as against the previous quarter to record 4.3 per cent (Q3 2021: 4.7%). The number of unemployed persons in this quarter reduced by 51.8 thousand persons to 694.4 thousand persons (Q3 2021: 746.2 thousand persons). Year-on-year, the unemployment rate also declined by 0.5 percentage points corresponding to 66.3 thousand persons as compared to the same quarter on the previous year (Q4 2020: 4.8%; 760.7 thousand persons).

There were 611.0 thousand persons who were actively unemployed, encompassing for 88.0 per cent of unemployed persons, the decrease of 0.2 percentage points from the previous quarter (Q3 2021: 88.2%; 658.1 thousand persons). Correspondingly, the percentage share of the inactively unemployed increase by 0.2 percentage points to 12.0 per cent or equivalent to 83.4 thousand persons (Q3 2021: 11.8%; 88.1 thousand persons). [Chart 2] 

Chart 2: Unemployment Category, Malaysia, Third Quarter of 2021 & Fourth Quarter of 2021, (‘000)

OUTSIDE LABOUR FARCE

FEMALE MADE UP THE LARGEST COMPOSITION OF OUTSIDE LABOUR FORCE 

In the fourth quarter of 2021, the number of outside labour force decreased by 0.9 percentage points equivalent to 68.6 thousand persons as compared to the previous quarter to record 7.36 million persons (Q3 2021: 7.43 million persons). Meanwhile, the number of outside labour force rose by 0.6 percentage points equivalent to 43.1 thousand persons as against the same quarter of the preceding year (Q4 2020: 7.32 million persons).

Female made up more than half of composition in outside labour force, accounted for 68.7 per cent or equivalent to 5.06 million persons. Meanwhile, male comprised 31.3 per cent of the outside labour force or corresponding to 2.31 million persons. [Chart 3]

Chart 3:  Population of Outside Labour Force by Sex, Malaysia, Third Quarter of 2021 & Fourth Quarter of 2021, (‘000)

The detailed information and technical notes are published in the Labour Force Survey Report, Malaysia, Fourth Quarter 2021. This report is accessible and downloadable free of charge through the eStatistik application in DOSM web page, www.dosm.gov.my.

Released By:

DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA

8 February 2022

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