KUCHING: The nation’s unemployment rate has dropped to 2.8 per cent as of June this year, down 0.1 percentage point from 2.9 recorded in May 2014.
The Statistics Department, in its updated Monthly Principal Statistics of Labour Force (June 2014) released Monday, said the number of unemployed decreased in June 2014 by 20,700 persons to 385,800.
This marked a 5.1 per cent drop when compared to 406,500 unemployed persons recorded in the previous month.
Year-on-year comparison indicated that the unemployment rate remained at 2.8 per cent as at June last year.
“Looking good. Our unemployment rate dropped to 2.8 per cent from 3.1 per cent forecasted earlier. Let’s maintain this momentum,” Prime Minister Datuk Seri Najib Tun Razak yesterday tweeted when commenting on the nation’s positive drop in unemployment rate.
The seasonally adjusted unemployment rate was estimated at 2.7 per cent – 0.1 percentage point lower than actual figure of 2.8 per cent.
The department also reported that labour force participation rate declined to 67.5 per cent in June this year, as compared to 67.9 per cent in the previous month.
The drop of 0.4 percentage point is an extension of the decrease of population in the labour market by 0.3 per cent.
This considering that the nation’s labour force in June this year was recorded at 14.01 million when compared to 14,052,800 the previous month. Those employed as of June fell 0.2 per cent to 13.624 million from 13.646 as of May 2014.
Year-on-year comparison showed that the labour force participation rate was lower by 0.3 percentage point than 67.8 per cent in June last year.
Outside labour force were recorded at 6,748,600 in June, marking a 1.8 per cent increase from 6,631,100 in May this year.
“Labour Force Survey (LFS) is conducted to collect information on the structure and distribution of labour force, employment and unemployment. The LFS covers both urban and rural areas of all states in Malaysia through the personal interview method.
“The survey population is defined to cover persons who live in private living quarters and hence excludes persons residing in institutions such as hotels, hostels, hospitals, prisons, boarding houses and military barracks,” the Statistics Department said in its report.
The survey comprises the economically active and inactive population. To measure the economically active population, LFS uses age limits of 15 to 64 years.
In its definition, the economically active population comprises those employed and unemployed whereas those who are inactive is classified as outside labour force.