Does the 72,000 retrenchment figure include informal sector workers?

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Retrenchment Figures Exclude Informal Sector Workers

The reported figure of 72,000 retrenched Malaysians between March and September does not include individuals working in the informal sector. This statistic is derived from data collected by the Social Security Organisation (Socso), which primarily covers formally employed individuals registered with the agency. Consequently, workers in unregistered businesses or informal arrangements are not captured within this specific count.
Retrenchment Data Source and Scope

The total of 72,000 retrenchments was provided by the Human Resources Minister, Datuk Seri M. Saravanan, and is based on data from Socso. This figure represents individuals who were formally employed and registered with Socso, subsequently losing their jobs during the period from the imposition of the movement control order in March up to early September. The minister explicitly stated that this count excludes those employed in informal businesses, as these entities and their workers are not registered with Socso.
Exclusion of Informal Sector Workers

The exclusion of informal sector workers from the 72,000 retrenchment figure is due to the registration requirements of Socso. Informal businesses, such as unregistered eateries or freelance operations, do not typically register their employees with Socso. This lack of formal registration means that any retrenchments occurring within these sectors are not reflected in the official data collected by the organisation.
Data Limitations for Informal Sector

The Ministry of Human Resources, and by extension Socso, therefore does not possess precise data on the number of retrenchments within the informal economy. This limitation means that the overall impact of job losses on the Malaysian workforce might be understated if solely relying on the Socso-based figures. Estimating retrenchment numbers in the informal sector would require alternative data collection methods or surveys specifically targeting these types of businesses and workers.

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Does the 72,000 retrenchment figure include informal sector workers?

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