and 2008, and a certain rebound thereafter. The decline between 1996 and 2008 can be attributed to a fall in the employment rate among men, which fell from 82.4 percent to 77 percent between 1997 and 2007 (see Figure 6). This decline was gradual, and did not exceed two percentage points from one year to the next. After 2007, the employment rate among men again increased slightly, reaching a level of 77.9 percent in 2018. The employment rate among women shows a very different pattern. Between, 1987 and 1997, it remained more or less constant, averaging 44.6 percent. More recently, it has increased significantly, reaching 53.2 percent in 2018.

One plausible reason for the temporary decline in the employment rate among men between 1996 and 2008 is educational upgrading. Figure 7 shows that Malaysians have acquired increasingly higher levels of educational attainment, which requires more years of schooling and therefore reduces the employment rate. While both men and women underwent educational upgrading between 1987 and 2018, women face other more binding constraints in entering the labor market and obtaining employment, some of which have been addressed over the last ten years through the increased availability of childcare and other policy initiatives (World Bank 2019b).

**Figure 6: Employment as a share of working-age Figure 7: Educational attainment of workers by population cohort**

|70<br>75<br>80<br>85<br>working-age<br>60<br>80<br>100<br>people (%)|
|---|
|55<br>60<br>65<br>a share of<br>pulation<br>20<br>40<br>Share of|
|40<br>45<br>50<br><br>1987<br>1989<br>1991<br>1993<br>1995<br>1997<br>1999<br>2001<br>2003<br>2005<br>2007<br>2009<br>2011<br>2013<br>2015<br>2017<br>Employment as<br>po<br>0<br>1946<br>1949<br>1952<br>1955<br>1958<br>1961<br>1964<br>1967<br>1970<br>1973<br>1976<br>1979<br>1982<br>1985<br>1988<br>1991<br>Year of birth<br>No certificate<br>Primary<br>Secondary|
|Male<br>Female<br>Total<br>Post-secondary<br>Tertiary|
|Source: Authors’ calculations based on data from DOSM<br>Note: Employment data for 1991 and 1994 are not available.<br>Source: Authors’ calculations based on data from DOSM<br>**Table 6: Employment and share of employment by sector, 1987-2018**<br>**Employment by sector ('000)**<br>**Share of employment (%)**|
|**1987**<br>**1997**<br>**2007**<br>**2018**<br>**1987**<br>**1997**<br>**2007**<br>**2018**|
|Agriculture<br>1,846.40<br>1,481.30<br>1,558.20<br>1,570.30<br>30.9<br>17.3<br>14.8<br>10.6|
|Mining<br>33.00<br>38.50<br>39.40<br>90.80<br>0.6<br>0.4<br>0.4<br>0.6|
|Manufacturing<br>928.90<br>2,002.50<br>1,977.30<br>2,499.90<br>15.5<br>23.4<br>18.8<br>16.9|
|Construction<br>336.30<br>793.00<br>922.50<br>1,257.80<br>5.6<br>9.3<br>8.8<br>8.5|
|Trade<br>1,091.70<br>1,577.90<br>2,472.80<br>4,018.00<br>18.2<br>18.4<br>23.5<br>27.2|
|Transport<br>252.00<br>423.30<br>538.20<br>914.30<br>4.2<br>4.9<br>5.1<br>6.2|
|Business<br>241.60<br>447.20<br>840.30<br>803.50<br>4.0<br>5.2<br>8.0<br>5.4|
|Other<br>1,253.90<br>1,805.40<br>2,187.70<br>3,619.40<br>21.0<br>21.1<br>20.8<br>24.5|
|_Aggregate_<br>_5,983.80_<br>_8,569.10_<br>_10,536.40_<br>_14,774.00_<br>_100.0_<br>_100.0_<br>_100.0_<br>_100.0_|

Source: Authors’ calculations based on data from DOSM Similar to the developments with regard to output, between 1987 and 2018 the share of employment in agriculture declined while the share of employment in the manufacturing and services sectors increased (see 12