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Malaysian Job Loss Increases By 42%

Malaysian Job Loss Increases By 42%

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It’s no surprise that the Covid-19 pandemic is taking a great toll on the economy, and in turn, the livelihoods of our fellow Malaysians.

According to the Social Security Organisation’s (Socso) Employment Insurance System (EIS) Employment Outlook report on Loss of Employment (LOE); Malaysian job losses have increased by 42% for the first quarter of 2020 compared to the same period last year.

This year-on-year increase is expected to rise by 50% to 200% for each subsequent quarter this year.

Some Malaysians have shifted to working from home despite looser restrictions under the Conditional Movement Control Order (CMCO).
(Credit: Borneo Post)

The report shows that more than 60% of workers below the age of 40 have lost their jobs, with the majority being those between 31 to 40-years-old.

Furthermore, the study also revealed that more men are being retrenched compared to women with the figures standing at 60/40. However, the report notes that this could simply mean that there are more men compared to women in the workforce.

Job losses are highest in Selangor followed by Kuala Lumpur, Johor, Kedah, and Penang.

Meanwhile, a survey done by the recruitment platform JobStreet found that one out of five Malaysians have recently lost their jobs nationwide since the Movement Control Order (MCO) began, with most of them coming from the low-income segments of the workforce.

Industries that have been letting go of their employees are largely from the tourism and hospitality sector, public transportation, education, and retail industry.

Taxi drivers wait for passengers at a taxi station in Shah Alam during the conditional movement control order May 6, 2020. — Picture by Miera Zulyana
Taxi drivers waiting for passengers during the slow days of the MCO.
(Credit: Miera Zulyana/Malay Mail)

JobStreet’s survey also revealed that 35% of Malaysian salaries have been cut by more than 30%, and over 50% of Malaysians are actively looking for employment opportunities online.

JobStreet stated that industries such as manufacturing, retail, banking, healthcare, and information technology (IT) are showing continued slow growth and are still hiring people during the pandemic.

The recruitment firm also deduced that it would be challenging for fresh graduates to enter the job market, but remained optimistic that things would improve in the next six to 12 months.

Previously, the Malaysian Employers Federation (MEF) predicted that more than 2 million Malaysians would lose their jobs due to the offset of the pandemic, and data from the Department of Statistics Malaysia (DOSM) showed that the nation’s unemployment rate had gone up to 3.9%.

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