The country’s unemployment rate is predicted to surpass the 1997 Asia Financial Crisis the worst jobless market Malaysia encountered and even higher than the 2008 economic meltdown which registered 3.2% and 3.7% respectively.

Research arm under AmGroup estimates the 6% rate based on multiple of factors, latest labour market data shows the situation on the ground is much more dire than expected. Compared to April, unemployment has risen by 5% highest ever since 1990 compared to 3.9% in March. Chief Economist and analyst Dr Antony Das believes the numbers are an accumulative to the already expanding jobless market in February and further weighed by MCO which forced all economic sectors to shutdown.

This led to a jump in jobless Malaysians by nearly 50% year on year to 778,700 in April adding to a total of 2.4 million unemployed in just 4 months of the year. The effects are mostly felt by small business operators who were completely without income during the 2 month lockdown, however this category does not fall under the employment list hence they are not accounted for. If were to add this in, another 2.59 million need to be included, giving a rise in total effected by Covid-19.

Many analyst are expecting the jobless numbers to increase the supplementary support given by the government for employers ends in June, under the stimulus company’s who take up the aid will have to retain staffs for three months. But if these organisations still find it difficult to sustain, they will shut redundant departments down and layoff workers.

Impact of this will be devastating to workers as the moratorium for their car and housing loans will also expire by then. A double whammy indeed!