KUALA LUMPUR, June 24 — Approximately 42,807 workers nationwide were reported to have lost their jobs from January to June 12 this year, said Human Resources Minister Datuk Seri Ramanan Ramakrishnan.
Based on statistics from the Social Security Organisation (SOCSO), business closures and company downsizing were identified as the main causes of retrenchment, affecting 17,485 people or 40.85 per cent.
"Kuala Lumpur recorded the highest number of job losses at 30 per cent or 12,844 people, followed by Selangor with 12,360 people, and Johor, which recorded a job loss rate of 8.1 per cent or 3,468 people," he said during the Question Time at the Dewan Rakyat today.
Ramanan was responding to Padang Serai MP Datuk Azman Nasrudin's query on the extent to which automation and artificial intelligence (AI) have influenced the trend of company closures and downsizing in the Klang Valley, which have contributed to the majority of job losses since the beginning of this year.
He added that AI is not a threat to employment at present; instead, the workforce needs to be equipped with AI-related skills so they are not left behind when the technology becomes a necessity in the future.
Replying to Hulu Terengganu MP Datuk Rosol Wahid's supplementary query, Ramanan said the perception that AI is the primary cause of job loss is inaccurate, as data indicates that retrenchments are mostly driven by business closures, voluntary separation schemes, and workforce downsizing.
The country's job market still shows high demand for labour, with 605,168 job vacancies advertised through the MYFutureJobs portal since last January, compared to 188,062 job seekers, including those who lost their jobs.
Meanwhile, a TalentCorp study found that approximately 697,000 jobs are at risk of being affected by technological advancements and the green economy over the next three to five years if workers do not upskill.
In this regard, the Human Resources Ministry is implementing various upskilling and reskilling programs, including the Scheme for Training and Upskilling for Employability and the Academy in Industry programme.
Additionally, it provides the MyMAHIR.my platform and the MyMahir SkillsLab program, which includes AI modules to help the workforce adapt to future requirements.
