Post-Covid Effects on Malaysian Unemployment Rates

By Mohammad Azmi Ahmad Hamaydeh

Covid 19 has had a drastic effect on the Malaysian economy. This has been progressively getting worse and post-pandemic employment rates are recorded at an all-time high.

The reason unemployment rates continue to rise and will probably continue to rise for the unforeseeable future is very simple. Companies, with lockdown restrictions, cannot afford to have the same number of employees.

In addition, many companies have had to shut down in order to cut their losses. This unfortunately has left a large number of the Malaysian populace unemployed.

On 24 January, the first case of Covid was detected in Malaysia. Just a few months after that, the lockdown was initiated. The streets were silent, and businesses took a strong hit.

The lockdown had a major effect on the tourism sector. It was perhaps the most impacted sector during the year 2020. With the Malaysian government relying to tourist to purchase Malaysian services and products, the effects of declining tourism were very apparent.

source: Department of statistics Malaysia

“I had to close my billiards, I had to cut my losses, I really didn’t want to do it at first, but am glad I took my fathers advice,” said 21-year-old Zahil Taleb, a business owner that closed early in the pandemic.

Furthermore, there is widespread panic among all Malaysian students, many graduates are now searching for jobs, many of them with student debt and others facing parental pressures.

On the other hand, others with the opportunity to further their studies have completely given up on employment and are instead applying for a master’s degree.

This quarter shows the highest ever recorded unemployment rates in Malaysian history.

Unemployment dropped at rates never before seen. With the country on the edge of financial ruin, and with the value of the Malaysian Ringgit plummeting, will the country be able to recover?