Under Pemulih, the Government has further strengthened the automatic labour market stabilisers. Improvements were made to ensure the stabilisers were inclusive for all workers. – AZLINA ABDULLAH/The Star
When the movement control order was tightened to curb the spread of Covid-19, the cost to the economy in terms of business and employment losses increased.Statistics of the past few weeks showed the rate of Covid-19 infection was more inelastic, while economic indicators pointed towards the opposite direction.The Government’s initiative to introduce Pakej Perlindungan Rakyat dan Pemulihan Ekonomi on June 28, 2021, was timely for labour market stablisation.
Previously, the unemployment insurance scheme managed by the Social Security Organisation was the most effective automatic stabiliser that provided income assistance to workers who lost jobs and placement services. In 2020, WSP benefitted more than 3.7 million workers. Without WSP, unemployed workers in 2020 would have surpassed more than a million people and the unemployment rates were likely to reached double digits.Under Pemulih, the Government has further strengthened the automatic labour market stabilisers. Improvements were made to ensure the stabilisers were inclusive for all workers.
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