KUALA LUMPUR, May 26- The unemployment rate in the country for March 2014 was at 3.0 per cent, comparatively lower from 3.3 per cent in March last year , the Statistics Department said.
When compared with the previous month, the rate was down 0.2 percentage point from 3.2per cent in February 2014.
In a statement here today ,the department also said the labor force participation rate decreased in March 2014 to 66.9 per cent from 67.4 per cent in the previous month.
“A reduction of 0.5 percentage point was the impact of the decline of the population in the labor market by 0.3per cent (43,800 persons).
“Year-on-year comparison showed that the labor force participation rate was 1.4 percentage point higher than 65.5 per cent in March 2013,”it added.-Bernama.
THE ANALYSIS OF UNEMPLOYMENT RATES IN MALAYSIA
ECONOMIC CONCEPT :
Inflation & Unemployment
PROBLEM OR ISSUE :
Unemployment rates in Malaysia
Unemployment takes place when people have no jobs and there are willing to work and searching the work. The rate of unemployment will increase when there I decline in the economy, but unemployment also happens when the economic report of 2013 published unemployment rate rose to 3.3 per cent in March last year compared with 3.0 per cent this year 2014. We can see above article that the percentage of labor force and unemployment rate of 2014 is less than compared to last year ,2013.Thus, the unemployment rate also decrease on 2014. In this type of unemployment ,the labor force is employed at times and unemployed at other times. It will arise due to a seasonal variation in the activities of particular industries. The causes of unemployment is high population growth, lack of workforce information and business cycle. When the economy is stable, Aggregate demand is high, while the unemployment rate will be low. If the economy is unstable or in recession production falls as more labor has to stop working and become unemployed. The effects of unemployment ruins in economic growth . High unemployment rate will ruin the economic growth and performance, the high rate of unemployment and sluggish activities of firm will result in a reduction in their profits. The low profits will reduce the eagerness of inventors to make new inventors. This will effect national economic growth. The factor of other effect is drop in gorvement revenue