The number of labour force rose marginally by 1.8 thousand persons, as against April 2020 to record 15.71 million persons.
Employed persons recorded a marginal decline of 0.3 per cent (April 2020: -2.0%) month-on-month to 14.89 million persons. In line with this, employment-to-population ratio which provides information on the ability of an economy to create employment dropped further by 0.4 percentage points to post 64.4 per cent.
Outside labour force recorded inflows of 47.0 thousand persons as against April 2020. This brought the total number to 7.39 million persons. A combination of more than 80 per cent was outside labour force due to housework/ family responsibilities and schooling.
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Labour force participation rate (LFPR)
In May 2020, the number of labour force rose marginally by 1.8 thousand persons, as against April 2020 to record 15.71 million persons. Meanwhile, year-on-year, labour force recorded an increase of 71.7 thousand persons (0.5%). The LFPR in May 2020 stood at 68.0 per cent, registering a decline of 0.1 percentage point month-on-month as outflows into outside labour force continued to increase. This was the lowest LFPR recorded since December 2017. In comparison, the lowest LFPR ever recorded was 62.6 per cent in 2008.
The unemployment rate in May 2020 further escalated 0.3 percentage points month-on-month to 5.3 per cent after registering 5.0 per cent in April 2020. During the same period, the number of unemployed persons went up by 47.3 thousand to 826.1 thousand persons as against 778.8 thousand persons. Meanwhile, year-on-year, the unemployed rose by 306.3 thousand persons.
The survey population cover persons who live in private living quarters and excludes persons residing in institutions such as hotels, hostels, hospitals, prisons, boarding houses and workers residing in construction work site.
The survey comprises of the economically active and inactive population. To measure the economically active population, the LFS uses the age limit of 15 to 64 years. The economically active population comprises of those employed and unemployed whereas those who are inactive is classified as outside the labour force.
LFS uses the actual status approach, where a person is classified on the basis of his labour force activity during the reference week.
All persons not classified as employed or unemployed as stated above are classified as outside labour force. Includes housewives, students (including those going for further studies), retired, disabled persons and those not interested in looking for a job.
The economic activity of a population depends on the demographic characteristics of that population. The proportion of economically active population, therefore, differs between sub-groups of that population. These variations are measured by specific activity rates termed as labour force participation rate. Labour force participation rate is defined as the ratio of the labour force to the working age population (15 to 64 years), expressed as percentage.
Population by characteristics of age group, ethnicity and state were used as benchmarks to produce labour statistics.
Starting with the monthly release of the Principal Statistics of Labour Force, Malaysia, January 2016, the principal statistics of labour is estimated based on the current population estimates as compared to the previous series which used population projections based on the Population and Housing Census of Malaysia, 2010. This rebase is to obtain statistics that is more consistent with current population structure.
DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
14 July 2020
Mohd Yusrizal bin Ab. Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : yusrizal.razak[at]dosm.gov.my