Labour market reforms must accelerate to support economic growth - BNM

While continued economic activity expansion is expected to occur in 2023 as conditions normalise following the Covid-19 pandemic, labour market reforms must accelerate to support economic growth, said Bank Negara Malaysia (BNM).

Slack in the labour market - shortfall in demand for labour, relative to the supply of available workers in the economy - is expected to reduce further as well supported by continued strength in the employment recovery momentum, it said in its Economic & Monetary Review (EMR) 2022 report.