Effects of Covid-19 on Malaysian Job Market

Effects of Covid-19 on Malaysian Job Market

Covid-19 has adversely affected the Malaysian job market, and the mobility restrictions due to this virus also tie the knot. The unemployment rate speaks about the condition economy of every country—the Malaysian job market also affected by this virus in many ways.

Those who have a job now facing many operational issues because they are in the Covid-19 lockdown, and those who were seeking jobs now looking towards the government to help them in these difficult times. As this generation has never seen such an enormous breakdown in both business and the job market, so they have no idea how to cope with it.

As much of the businesses are concerned now because they are also affected by the Coronavirus, so many business owners fire their employees because they have no budget to pay. In fact, the business sector is the sector which provides a big portion of jobs, as it is badly affected by Corona, so the job market also affected very much by this significant breakdown in the business world.

One thing which we can learn from this Coronavirus and its lockdown is that those jobs which are based on the internet and the online world not much affected by the Coronavirus. But in reality, these jobs flourish because businesses move from offline to the online market, and many online industries like e-commerce, digital marketing, and freelancing grow many folds. It means that we have to redefine the job market. In the future, when tech penetration will increase, the demand for digital labour will also increase. Digital labour means the remote workers who work from their home and earn money through it. Freelancing is the future of the digital job market.

The biggest concern is about the future of the physical labour market in which the physical power of the human is needed. These industries suffer a lot from Corona. Many people lose their jobs, and they are now looking for new jobs. It also increases the unemployment rate in the country.

As in Malaysia, many people comes from the south Asian and African countries as physical labour, so they also lose their jobs, and it's another drastic effect of the Coronavirus on the Malaysian job market.

Job market before Covid-19

Before the Coronavirus, the job market in Malaysia was flourishing and was well on its way towards making new records. The business sector was growing, and it was producing new job opportunities before the virus.

The labour force is an integral part of the Malaysian job market, which primarily consists of people from third world countries. The labour force's growth rate was 1.7 % per year, and this increase leads the labour force participation rate to 68.8%. This increase in the labour force was before the arrival of Coronavirus, and this force was mainly work in the construction and product companies where the physical power of the man is an essential part of the work.

Before Coronavirus, the private sector, which is an important stakeholder in the Malaysian job market, was also showing progress. In every developed country private sector helps a lot to decrease the unemployment rate by expanding their business and creating more job opportunities. The private business sector was doing the same thing. It was expanding and opening its business in different cities, and as a result, a lot of job opportunities produce.

The Malaysian employment market was stable before the coming of the Coronavirus. The GDP rate was 4.85% average growth in the last 4 to 5 years, and Malaysia was also ranked 11th globally in ease of finding skilled employees. The IT Sector was flourishing, producing lots and lots of job opportunities for the people who want to make a career in this field after learning an in-demand digital skill.

Job market after Covid-19

When the Coronavirus comes in the first quarter of 2020 in Malaysia, the stability of the job market was the second biggest concern after the health crisis. As the business owners have to shut down their factories and the offices as per the government's instructions, the jobholder becomes very pessimists about their job future because the business owner was not ready to run the company at a loss, they decided to fire their employees.

Coronavirus mainly affected those businesses which were producing physical products in their factories and not selling them online. As the factories need physical labour and Coronavirus made it hard to keep factories open and keep running the businesses, so owners fire the labour and a significant upsurge in the unemployment rate was observed at that time.

One thing which makes this statement very clear that the future is connected online is the stability of the online business and the remote workers. Those businesses that can work through the internet, and there is no need for physical presence, flourishes in the Covid-19 days.

The mindset of business owners also change. They now want to enter in the e-commerce industry.

The reason behind the upsurge in the freelance world in the Covid-19 days is that people were finding jobs and on the internet, they come across with freelancing and online work they polish or learn the digital and indemand skills and then by selling and monetizing these skills thy earn money without any kind of physical hurdle. The increase in the demand for skilled persons and freelancers is a huge plus point of the Coronavirus.

Another industry that is badly affected due to the Coronavirus is the construction industry. As the labour force was not able to work due to the Covid-19 lockdown imposed by the government, so this industry stuck in a lope and faced significant setbacks in the form of both growth and finances.

Impact of Covid-19 on the business world.

It is essential to discuss the impacts of Coronavirus on the business world and how a business has changed during the Covid-19 lockdown? Because the business sector is the most important sector when it comes to job opportunities. It creates a lot of job opportunities for fresh graduates.

Every country wants to grow its business sector because they know that if their business industry is strong and reliable, then it will flourish and progress, which will bring more job options to the country. Here I will discuss the impacts of Coronavirus on the business world from various perspectives:

Impact on Strategy:

A strategy is an essential part of a business when it goes to cope with any problem. Now, Covid-19 is a big problem for every business. So it is time to use an effective strategy to cope with the effects of the Corona- virus. Business owners revisit their strategy and make them more flexible and emergency proof.

As the Coronavirus was a new thing for every business owner, and they never face such a setback in their entire journey, so they make different strategies to cope with its effects.

Same of the powerful and famous strategies adopted by the business owners are listed below:

  1. Some companies fire their employees to control their budget.

  2. Business goes from offline to online to win the leads.

  3. Some companies hire remote workers to work in the Covid-19 lock- down.

  4. Some companies deal with the effects of Covid-19 by adopting strict precautionary measures.

  5. Some companies reduce their budget to survive in the difficult days of Corona.

    So, in short, every company deal with Covid-19 by adopting a strategy that best fit to their overall structure. Some company owners also mitigate the impacts of Covid-19 by taking it as a challenge for them and giving their best output to get and achieve the desired goals for their company. In Malaysia, as Covid-19 not spread at high speed and the death ratio was not high as compared to Europe and America, so there was a good time for the business to remap their strategies and bounce back to not only take their top position but also to progress and grow.

Many businesses are now working on things with a new perspective, and that is the internet. It is the digital age. A business that is not able to digitalize it and get the exclusive benefits of the internet then it can't compete with its competitors, which are well aligned with the internet.

Business owners are now using work management and project management software to control their company's operation because they know that by using these softwares, they will become more productive in less time. So digital strategy is the new normal for the company's owners if they want to secure their position in the online world because customers are now approaching the products of the companies from online sources.

Impact on customers:

No business can ignore the importance of customers for its survival and progress in the market. Covid-19 also profoundly impacts the customer's behavior, and now the things from the customers' perspective have changed a lot. Number one and the most notable changing is that customers are now reaching the business through online sources. They order online, pay online and receive the product on their doorstep.

But what is the catch for the businesses here? There is a big catch for them here. A business can win lots and lots of leads by revisiting its online presence and by making it flawless. A company which is selling either physical or digital product can now reach out to their customers

through different online channels. It can be an e-commerce website, social media page or blog. Customer will come and order the company's product. It is a big reason behind the growth of those companies which sell their products in the Covid-19 days through internet.

If you are a business owner, then hire an online strategy maker; if you are good at it, then it is a golden edge for you. Use your digital knowledge to enhance your business in the online world and get more leads for your business. In this Covid-19 age, every customer wants to keep himself away from physical contact as much as possible you can use this in your favour by contacting the customer through the online platforms.

Impact on the workforce:

The workforce is the backbone of a business which can make or break the business. In the Covid-19 age workforce of every company is facing challenges to keep the business running as the government of Malaysia impose lockdown to decrease the spread of the virus. Hence, workforce disruption occurs, which is not a good thing in the company's daily routine.

Every company tries to cope with this problem in its own way. The most famous solution was remote working. The company's workforce moved online and started working through online channels. They use work management software to keep things going and to connect with their teammates. Coronavirus has al show us the importance of the internet and social media. As the workforce was connected virtually, so they were also able to learn new skills and get a better and skilled person when they come outside from the lockdown.

One thing which was most noticeable in the Covid-19 days is that those people whose job was that kind in which physical power was needed to face a lot of disturbance in their working. As the remote working option was not available for them, they remain with only two options: one is to adopt strict preventive measures, and the second is to leave their jobs. So the physical labour faces a lot of inconvenience due to the Covid-19 virus.

Impact on operations and Technology:

Coronavirus also hit the traditional working methods and the tools of working in the business sector, so Business owners adopt the new working methods and the technologies to keep their business on the working track.

Work management software is an excellent example of this. With the help of this software, a business owner can contact his employees and discuss the business-related work with them as these work management software is cloud-based, so anyone was able to access them from his computer, and no physical presence was vital in it.

Company owners also adopt new technologies to save themselves from the virus and keep running their operations. Everyone copes with the virus in his own way.

How is the job market recovering in Malaysia?

At the time of writing these lines, Malaysia is well on its way to bouncing back from the disruptions produce due to the Covid-19 Virus. The job market is near to open to its full extent, and things are getting back toward normal.

As the businesses are now open, so everyone is able to get his job back. But one thing which is now changed is the perspective of the business owners with which they were treating their business. Now they understand the importance of online platforms for the progress of their business. They know that they have to go online if they want to succeed in the long run.

The number of remote workers has also increased a lot now people want to work from home, and they also learn how to work from home, they know that they have to fist learn a skill and then have to use this skill to earn money by monetizing it in different ways. Things have changed a lot in just one year. Freelancing is now considered a full-fledged job in Malaysia, and everyone with the right frame of mind wants to step into it.

What are the opportunities?

There is a whole world of opportunities present online. You just have to search in which way to can monetize your interests in the online world. You can find your ideal customer to sell your product. This product can be either physical or digital. Freelancing has now become a new normal.

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