KUALA LUMPUR (Nov 11): Malaysia’s unemployment rate held steady in September as payrolls grew faster than the number of people without jobs, official data on Wednesday showed.

As the use of artificial intelligence (AI) and automation expand, efforts to support the redeployment of workers affected by technological changes and encourage investment in productivity-boosting technology should be intensified, the Department of Statistics Malaysia said in a statement.

“Early warning mechanisms” to identify sectors at risk of workforce displacement should also be strengthened, the department said.

The unemployment rate in September was 2.9%. Economists generally consider a 3% unemployment rate as the economy having full employment.

The economy saw the number of unemployed rise to 513,200 in September versus 511,600 in August. The number of people with jobs, meanwhile, climbed to 16.89 million from 16.87 million in the previous month.

All in all, the labour force expanded to 17.40 million persons in September compared to 17.39 million persons in August. Labour force participation rate, the proportion of persons employed or looking for work, was unchanged at 71%.

The employee category, the large majority of the workforce, was a tad higher at 12.65 million persons. Own-account workers — people who operate their own farm or business, or engage in full-time trade without hiring paid employees — grew to 3.17 million persons.

In terms of age groups, unemployment among youths — those between 15 and 24 years old and just entering the labour market following education — was little changed at 10.1% or about 293,100 people.