Statistics department to release more frequent data on underemployment

There were 1.13 million graduates classified as underemployed last year.

PETALING JAYA: The Department of Statistics Malaysia (DOSM) is looking at releasing more frequent data on underemployment to help create better policies in view of the Covid-19 pandemic.

“DOSM is studying the release of underemployment statistics on a more frequent basis, at least quarterly,” chief statistician Mohd Uzir Mahidin told FMT.

Currently released on an annual basis in the department’s Labour Force Survey (LFS), underemployment figures provide policy-makers a clearer picture as to how many of the country’s working population are willing and able to work for longer hours or are employed in roles that do not commensurate with their skill set or experience – both of which have become increasingly common due to the pandemic.

“If last time a person was captaining an aeroplane and now he’s driving Grab, that’s underemployment,” said Uzir.

“If the person was earning RM30,000 previously and now he only earns RM3,000, that means his lifestyle will have to change.

“From drinking coffee at Starbucks, now he will have to drink half a cup of teh tarik at the coffee shop,” he said in jest.

Even before the pandemic, there were 1.13 million underemployed graduates doing SPM qualification jobs in 2019, according to the LFS, a marked increase from 800,000 in 2016.

Of the 337,600 people working 30 hours or less in 2019, 56.7% (191,600) said they were willing to accept additional work. Thirty hours a week is considered the threshold for partial employment.

The underemployment rate, or the percentage of employed persons working for 30 hours or less, was 2.2% in 2019.

The unemployment rate in August was 4.7%, which means 741,600 people out of a workforce of 15.9 million were jobless.

In an interview with FMT, International Labour Organisation (ILO) employment specialist Makiko Matsumoto explained the unemployment rate in developing countries is not a very useful labour market indicator as it does not capture the real need for jobs or incomes.

“However, for many Southeast Asian countries, such as Thailand, Vietnam and Malaysia, it (underemployment rate) comes out fairly small,” said Matsumoto.

“Roughly, it’s something around or less than 5% to 10%. If the unemployment rate is, for example, 2%, and you add those figures, the share of people in need of employment and more income does come out greater.” - FMT

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