How will economic growth impact job prospects next year?

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Economic Growth to Drive Robust Job Prospects in 2024

Economic growth is projected to significantly bolster job prospects throughout 2024, with the labour market expected to maintain its strong performance. This positive outlook is underpinned by an anticipated economic expansion, with gross domestic product (GDP) forecast to reach 4.9 per cent for the year. Kenanga Research has revised its economic growth projection upwards to 4.9 per cent, an increase from its previous estimate of 3.5 to 4.0 per cent for 2023.
Improved Market Conditions to Benefit Employment

The labour market is anticipated to gain from an uplift in both domestic and international markets. Evidence for this can be seen in the recent improvements in the manufacturing Purchasing Managers' Index (PMI) and a less pronounced contraction in exports. These factors suggest a more favourable environment for businesses, which in turn is expected to translate into increased hiring and job opportunities.
Domestic Demand to Further Support Job Market

Robust domestic demand will play a crucial role in sustaining the positive trend in the labour market. This demand is expected to be driven by resilient household spending, particularly towards the end of the year and during the festive season. Furthermore, an anticipated increase in tourist arrivals is also set to contribute to economic activity, creating more jobs across various sectors.
Policy Measures to Enhance Local Employment

The ongoing freeze on foreign worker intake is poised to stimulate local hiring and potentially lead to salary increases for Malaysian workers. This measure, coupled with the government's forthcoming Progressive Wage Model (PWM), is designed to boost wages for low and semi-skilled employees. Government projections indicate that the PWM could lead to a reduction in the unemployment rate by as much as 0.35 per cent. As of October, the number of unemployed persons in Malaysia stood at 570,999, with the unemployment rate holding steady at 3.4 per cent, reflecting a strengthening labour market.

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How will economic growth impact job prospects next year?

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