LETTERS: The efforts to mitigate the high number of unemployed in Malaysia hit by the Covid-19 pandemic are ongoing. Given the uncertainty so long as we are not free from the unprecedented pandemic, these initiatives must be continued, monitored and enhanced from time to time.
As reported, the government is confident of achieving its low unemployment rate target of 3.5 per cent this year despite the imposition of the Movement Control Order 2.0. It is estimated that more than 160,000 new jobs will be created this year.
The unemployment rate rose slightly higher in the final quarter of last year at 4.8 per cent. This also represents a greater number of unemployed — from 745,000 in the third quarter of last year to 760,700 in the fourth quarter.
The impact of the pandemic and the MCO on the labour market is also reflected through the "time-related underemployment", which refers to those who are employed for fewer than 30 hours a week given their nature of work or due to insufficient work assigned to them, and who are willing to work for additional hours.
Many have been let go by their employers due to cost-cutting measures and left with no choice but to shift to jobs with different wage levels or working environment.
In the final quarter of last year, the time-related underemployment went up to 369,100 from 300,800 in the preceding quarter. As a share of total employment, this type of underemployment went up again from two per cent to 2.4 per cent.
Up to this year, the Social Security Organisation's Employment Insurance System (EIS) data showed the loss of employment rising again last month from 6,805 benefit recipients to 8,334 recipients, compared with December last year.
Additionally, the total number of skills-related underemployment continued to increase to 1.89 million in the fourth quarter of last year from 1.76 million in the third quarter, despite rising employability of tertiary-level graduates.
The gloomy picture of the economy was reflected by the above scenarios and the latest release of the quarterly gross domestic product for the fourth quarter of last year, which showed a further decline by 3.4 per cent (compared with 2.6 per cent in the third quarter).
For the whole of 2020, the economy contracted by 5.6 per cent. The imposition and extension of the MCO 2.0, albeit the opening of almost all economic sectors, would still affect employment as it remains uncertain for the businesses, making it hard for them to retain employees.
Therefore, the extension of the Wage Subsidy Programme, as announced under the Permai package, is much welcome, with the number of eligible employees increasing from 200 to 500.
It would support companies in retaining workers as so long as the privilege is not abused.
As for the public sector and government-linked companies, the government has kick-started the Short-Term Employment Programme (MySTEP) this year, which provides jobs on a contractual basis.
Last year's reskilling and upskilling programmes have been extended to help the workforce stay relevant in the job market and fulfil demand from industries that are rapidly changing due to the pandemic. The creation of high-value jobs through quality investments must also be available.
The EIS also plays a crucial role in helping eligible workers to weather the crisis through job search allowance, reduced income allowance and early re-employment allowance.
The concern now is about the informal sector workers, whose social safety net is relatively low despite being employed.
Therefore, the welfare scheme for them needs to be strengthened as well.
Sofea Azahar
EMIR Research, Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times