In a statement, the research house said the labour market is expected to strengthen further in 2024, backed by encouraging momentum in the domestic economy and recovery in external trade.

It noted that the return of non-citizen workers is expected to boost overall employment and reduce the jobless rate.

“As of the third quarter of 2023 (Q3 2023), non-citizens’ employment is almost 0.8% lower than pre-pandemic levels.

“The downside risks to Malaysia’s labour market among others is lower-than-expected external trade recovery and a drop in global commodity prices,” it said.

Meanwhile, MIDF Research said in 2023, the jobless rate averaged 3.4% and the unemployment rate was maintained at the post-pandemic low of 3.3% in December 2023.

It said the labour force and employment improved further by 2% and 2.4% respectively, while unemployed persons declined by 8.1% and the outside labour force fell by 0.5%.

MIDF Research said it expects job vacancies to hover at 100,000-120,000 per month in 2024 amid external trade recovery and resilient domestic demand.

“Malaysia’s job vacancies registered at 113,600 in November 2023. The monthly average job vacancies dipped below post-pandemic levels of 173,500 in the 11 months of 2023 (2021: 206,700, 2022: 396,100).

“In comparison, the monthly average during 2010-2019 was at 114,000,” it said.