The opening of more economic activities since 10 June 2020 initiated more positive impact with an increase in the number of labour force by 49.5 thousand persons to record 15.76 million persons as compared to May 2020.
Employed persons grew marginally by 0.7 per cent month-on-month (May 2020: -0.3%) to 14.99 million persons. Employment-to-population ratio increased 0.3 percentage points from the previous month to post 64.7 per cent.
The number of outside labour force increased marginally by 0.1 per cent (+6.4 thousand persons) as against May 2020, bringing the total number to 7.40 million persons. The largest share was outside labour force due to housework/ family responsibilities, followed by schooling.
Labour force participation rate (LFPR)
The LFPR in June 2020 recorded a marginal growth of 0.1 percentage point month-on-month to 68.1 per cent. Both male and female recorded slight increases of LFPR. Male LFPR was 80.3 per cent, increased 0.1 percentage point as against May 2020 (80.2%) while female LFPR also rose by 0.1 percentage point to record 55.1 per cent (May 2020: 55.0%).
A better labour market condition in June 2020 was reflected by the decline in unemployment rate by 0.4 percentage points month-on-month to 4.9 percent from a record-high of 5.3 per cent in May 2020. During the same period, the number of unemployed persons lessened by 52.8 thousand to 773.2 thousand persons (May 2020: 826.1 thousand persons). Meanwhile, year-on-year, the number of unemployed persons rose by 251.8 thousand
This information is derived from the Labour Force Survey (LFS) which was conducted to collect information on the structure and distribution of labour force, employment and unemployment.
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.
Unemployed refers to those who do not have a job but are interested to work. There are two groups of unemployed that is the actively unemployed and inactively unemployed.
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
7 August 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