MIDF forecasts 4.3pc average unemployment rate this year

A bird's-eye view of Kuala Lumpur July 8, 2020. — Picture by Hari Anggara
A bird's-eye view of Kuala Lumpur July 8, 2020. — Picture by Hari Anggara

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KUALA LUMPUR, April 8 — MIDF Amanah Investment Bank Bhd expects labour market conditions to continue improving in the coming months, forecasting an average unemployment rate of 4.3 per cent this year versus 4.5 per cent last year.

In a research note today, the investment bank said this would be supported by a better business environment as restrictions from the movement control order (MCO) have been gradually relaxed and more businesses being allowed to resume operations.

However, it said improvement in the job market would be gradual as the pandemic is yet to be fully under control with the number of new Covid-19 cases remaining at four digits.

Meanwhile, it said sentiment is likely to improve as the government had pledged not to impose nationwide MCO and adopt a more targeted intervention measure going forward.

“The ongoing vaccination programme and the declining Covid-19 cases will also boost confidence and will result in improving hiring plans by local businesses.

“Support from the government’s assistance packages such as the extension of wage subsidy, grants and microcredit to small businesses, incentives for recruitment and MySTEP employment programme will also improve employment outlook this year,” it added. — Bernama

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