The global economy at a standstill due to the COVID-19. According to the International Labour Organization (ILO) mentioned that 1.25 billion of the workers which represent the38% of the global workforce is facing the high risk of a pay cut or layoff.
Currently, Malaysia is facing the Movement Control Order (MCO). It is no different with the economist predicting the unemployment rate will be increasing as well. Forecast of unemployment in the year 2020 will be becoming grim.
Before the government publishes the Prihatin and SME stimulus packages. Malaysian Institute of Economic Research (MIER) projected 2.4 million unemployed in March 2020. On 30th April 2020, the unemployment rate is 9.2% according to the 15.87 million labor force in the country mentioned by MIER.
The economy is projected to contract by 1% year on year which is under the worst-case scenario while the best-case scenario is expanding 3.8%.
According to the Department of Statistics (DoS) shows that Malaysian having 525,200 unemployed or 3.3% of the unemployment rate at the end of February 2020.
Lee Heng Guie, executive director of the Associated Chinese Chambers of Commerce and Industry of Malaysia’s Socio-Economic Research Centre (SERC) mentioned that the first impacted will be the job during the economic crisis. This is because people are not allowed back to the office and many things cannot move. It causes more people unemployed. Even the government providing wage subsidies to help the business, but it depends on how long business can hold on.
Studies show that the agriculture and service sectors were faced the highest percentage of job losses which involves 21.9% and 15%. For example, the demand for Cameron Highland was dropped as most of the fresh fruits and vegetables unable to sell. Most of the service sectors such as beauty salons, nail salons, and others are proving service by face-by-face.
As the MCO extended, the unemployment problem is more likely than not to be exacerbated.
( Source by The Edge )