A Recovering Economy Provides Great Opportunities for Continuous Improvement

Job openings are on the rise as Malaysia's economy recovers this year, as evidenced by the latest MIDF Employment Survey report. Employment rose to a record 2.9 per cent year-on-year in March 2022 (Q122), while the labour force grew steadily at 2.2 per cent year on year. 

While this is a good sign, some problems remain, such as a lack of talent. With the uncertainty associated with geopolitical tensions and rising corporate spending, many are suggesting that a full labour market recovery is now unlikely to return to pre-pandemic levels; and they are not wrong. The average unemployment rate in Malaysia is 4.0 per cent for 2022, higher than the pre-pandemic level of 3.4 per cent.

The good news is that with many businesses reopening, a lot of jobs are being created. However, employee mobility is also at its highest level. Employees are looking for a job that offers them a work-life balance that fits their lifestyle and responsibilities, and they are not afraid to "jump" at any point until they find what they are looking for. 

This, however, might not be the case for long as job opportunities will eventually stabilise as businesses adapt to rising inflation and tighter financial conditions. When that happens, even those who are not currently in the workforce might come back; and this group of talent will certainly be more open to taking up the right job offer with the right terms!

The best thing now is for employers to promote integration into the working life, and for employees to improvise on their skills and abilities through training and development. 

We have not left the forest yet, but we will get there for certain! Now is the best time for both sides of the fences to apply positive improvements that will add value to the business and its workforce!