Unemployment Rate of Malaysia Essay

713 Words Jul 6th, 2014 3 Pages
3.0 Unemployment Unemployment is defined as a situation where someone of working age is not able to get a job but would like to be in full time employment (Pettinger. T, 2010). In a modern economy, unemployment has a variety of causes. Some of them relate to the general level of economic activity, others are the result of a failure of the labour market in an economy to work optimally. Among the main types of unemployment, we can consider real wage unemployment, demand deficient unemployment, frictional unemployment, structural unemployment and hidden unemployment (Tutor2u, 2014).

Table 2: Unemployment Data of Malaysia (2003 - 2012) Year | Unemployment rate | 2003 | 3.61 | 2004 | 3.54 | 2005 | 3.53 | 2006 | 3.33 | 2007 |
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Because of this, the unemployment rate increased from 3.3% in 2008 to 3.7% in 2009. Nonetheless, unemployment rate of 3.7% is still considered very low compared to many other countries. Malaysia is also a developing country, so it needs a lot of labour in order to improve its economy; therefore the unemployment stays quite low (Zubir. F, 2012).
Starting from the year 2010 until year 2012, with the growth in the financial condition of the country, new jobs have been created in different sectors. As per the reports, the unemployment rate in year 2011 is around 3.1% and maintained the same in the year 2012, a figure that is lower than what it was in the previous years. Job opportunities in the country are on the rise and more people are expected to get recruited by the end of this year.
According to reports, the number of job vacancies has increased in almost every sector and so people are expected to get more jobs irrespective of their academic specification. Malaysian trade and commerce have made some recovery in the recent past. It is a positive side for the economy of the country (UK Essays, 2012). As a conclusion for the overall trend, from the year 2003 to 2012, the unemployment rate of Malaysia has decreased.

References
UK Essays. (2012). Unemployment Affects Economic Growth In Malaysia Economics

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