COMMENT | Stimulus injection is working well

COMMENT | The latest figures released by the Department of Statistics Malaysia (DOSM) in which the unemployment rate for May is increasing at a decreasing rate is a good sign that the stimulus package announced by the government during the early days of the Covid-19 pandemic has worked itself into the economy with good results.

The unemployment rate in May rose by 0.3% to 5.3% from April’s 5%. In terms of the number of persons out of jobs, there were 826,100 unemployed persons in May compared to 778,800 in April – an increase of 47,300 persons.

This compares favourably with the March to April figures when the 610,000 unemployed persons in March for a 3.9% jobless rate ballooned to 778,800 in April for a jobless rate of 5% – a staggering increase of 168,800 jobless people (1.1%) compared to the increase of 47,300 jobless people (0.3%) between April and May.

Of course, going by the absolute number of 826,100 unemployed people, this is quite a high number. The highest unemployment rate in Malaysia since the data on unemployment was first recorded in 1982 was at 7.4% in 1986.

But this ...