Nama: Pizaro

NIM : 218131013
Subject: Labor Market: Recognizing potentials in the future
Lecturer: Dinna Wisnu Ph.D
Unemployment levels in the Asia and Pacific are expected to remain low
relative to other regions, and constant over the forecast horizon at around
4.2 per cent. This is largely due to the fact that employment growth in the
region is expected to remain strong, with the number of employed
persons projected to grow by some 23 million (or 1.2 per cent) between
2017 and 2019.
Southern Asia, due to its rapid labour force growth, is expected to
account for close to 90 per cent of the total employment growth in Asia
and the Pacific. Conversely, employment growth in Eastern Asia is
expected to be marginal, mainly as a result of the shrinking workforce in
China.
Moreover, a large proportion of the jobs created in the region are
expected to remain of poor quality. The share of vulnerable employment
in total employment is projected to remain roughly unchanged in the
years to 2019. In particular, vulnerable employment will continue to affect
roughly 72 per cent of workers in Southern Asia, 46 per cent in South-
Eastern Asia and the Pacific, and 31 per cent in Eastern Asia.
Meanwhile, vulnerable employment continues to be more pervasive
among women than men. This is especially the case in South-Eastern Asia
and the Pacific, as well as in Southern Asia, where vulnerable employment
rates among women are respectively more than 10 and 8 percentage
points higher than those of men.
The high and persistent incidence of vulnerable employment is closely
associated with the fact that the pace of structural transformation
processes, whereby capital and workers transfer from low to higher.
The unemployment rate in Malaysia inched lower to 3.3 percent in
September of 2018 from 3.4 percent in the corresponding month of the
previous year. The number of unemployed went up 0.4 percent from a
year earlier to 516.4 thousand, and employment increased 2.6 percent to
14.94 million.
Also, the labor force rose 2.6 percent to 15.44 million. On a seasonally
adjusted basis, the jobless rate also edged down to 3.3 percent from 3.4
percent in August. Unemployment Rate in Malaysia averaged 3.28 percent
from 1998 until 2018, reaching an all time high of 4.50 percent in March
of 1999 and a record low of 2.70 percent in August of 2012.
According to Departement of Statistics Malaysia, in 2015, there were 8.7
million persons working in the formal private sector as compared to 6.9
million persons in 2010. Out of this total, 67.7 per cent (5.9 million
persons) were male while 32.3 per cent (2.8 million persons) were
female. The paid employees category represented 90.4 per cent of the
entire employees in 2015. Most of the paid employees were full-time
employees (97.0%) while the remaining (3.0%) were part time
employees. In terms of number of employment by skill, semi-skilled
workers dominated with a share of 61.9 per cent followed by skilled
workers (23.5%) and low-skilled (14.6%). From the perspective of
economic activity, the Services sector recorded the highest number of
employment, which was 4.8 million persons (54.9%) and followed by the
Manufacturing sector with 2.1 million persons (24.3%). Meanwhile,
Construction and Agriculture sector recorded 1.3 million persons (14.8%)
and 0.4 million persons (5.1%) respectively. The Mining & Quarrying
sector recorded the lowest percentage share of 0.9 per cent with 0.08
million persons in 2015.
The total salaries and wages paid in Malaysia in 2015 amounted to
RM245.69 billion. The Services sector recorded the highest salaries &
wages which was RM131.53 billion with a share of 53.5 per cent, followed
by Manufacturing sector with RM65.49 billion (26.7%) and Construction
sector with RM32.90 billion (13.4%). Meanwhile, the Mining and
Quarrying and Agriculture sectors accounted for RM7.87 billion (3.2%)
and RM7.90 billion (3.2%) respectively.
Meanwhile, median monthly salaries and wages for both male and female
employees posted high growth of 8.2 per cent and 7.0 per cent
respectively for 2016-2017. In terms of mean monthly salaries and
wages, female employees recorded a higher growth of 9.1 per cent while
male employees at 7.5 per cent.
The human resources situation in Malaysia consists of complicated laws –
some out dated, others merely flawed – that are in need of overhaul.
Since the third week of May, after the victory of Pakatan Harapan took
hold, the discursive process within which policy is formulated began in the
Human Resources Ministry.
On September 27, when presenting the trophy for winners of the Human
Resources Ministry's Productivity-Linked Wage System (PLWS), The
human resources minister M Kulasegaran aired the view that Malaysians
workers abroad could contemplate returning home with its mounting
success.
The PLWS was targeted at 85,000 employers and some 3.9 million
workers. It proved popular, that by August 84,249 employers covering
4.1 million employees became involved with the scheme.

This encouraging growth has emboldened our planners in raising the

target of employers involved in PLWS to 87,000 by 2020.

For perspective, a study in 2013 revealed that SMEs, under the PLWS,
experienced a 13 percent rise in productivity, a 10 percent rise in wages
for employees, and a 15 percent rise in profits. And SMEs are integral to
the national economy, in that they account for 36 percent of GDP, 18
percent of exports, and 65 percent of employment.
When these statistics are viewed against the range of proposed
amendments to nine laws pertaining to human resources that will be
tabled in the end-of-year session of Parliament, the scenario with respect
to labour alters considerably.
True, the raising to RM1,050 of the minimum wage and its
standardisation throughout the country does look like a paltry
improvement, but that has been influenced by the dire financial situation
of the country caused by the previous government's deliberate corruption
and reckless extravagance.
The ministry's efforts at boosting productivity by reskilling and upskilling
workers are happening at a quick pace.