Page 71 - AEI Insights Vol. 7 2021

Jingyi et al, 2021

5.1 percent in 2011. Its unemployment rate decreased from 4.4 percent in 2012 to 4.3 percent
in 2016, further to 4.1 percent in 2017. By contrast, Singapore’s unemployment rate was 4.1
percent in 2010 and decreased to 3.8 percent in 2011, further to 3.7 percent in 2012. However,
the country’s unemployment rate increased from 3.7 percent in 2015 to 4.0 percent in 2016,
further to 4.2 percent in 2017. Secondly, there are two countries with moderate level of
unemployment, namely Malaysia and the Philippines. There is an interesting downward
movement of unemployment rates in the Philippines. The country’s unemployment rate was
3.8 percent in 2009 and decreased to 3.6 percent in 2010, further to 3.5 percent in 2011. Also,
unemployment rate in the country decreased from 3.0 percent in 2015 to 2.7 percent in 2016,
further to 2.5 percent in 2017. On the other hand, Malaysia’s unemployment rate was 3.6
percent in 2009 and decreased to 3.3 percent in 2010, further to 3.0 percent in 2011. However,
the country’s unemployment rate increased from 3.7 percent in 2015 to 4.0 percent in 2016,
further to 4.2 percent in 2017. Finally, there are two more countries with relatively lower
unemployment rate, namely Cambodia and Vietnam. In the case of Vietnam, the country’s
unemployment rate increased slightly from 1.7 percent in 2009 to 1.8 percent in 2011, further
to 1.9 percent in 2011. However, the unemployment rate in Vietnam decreases from 2.1 percent
in 2015 to 2.0 percent in 2017. On the other hand, Cambodia’s unemployment rate decreased
from 0.7 percent in 2010 to 0.5 percent in 2011, further to 0.4 percent in 2013. However, the
country’s unemployment rate increased from 0.1 percent in 2015 to 0.7 percent in 2016, further
to 0.8 percent in 2017.

4.0
6.5
3.8
6.0
3.6
5.5 3.4
3.2
5.0
3.0
4.5
2.8
4.0
2.6
3.5 2.4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017
Malaysia Philippines
Indonesia Singapore
2.4
2.0
1.6
1.2
0.8
0.4
0.0
2009 2010 2011 2012 2013 2014 2015 2016 2017

Cambodia Vietnam
Figure 4: Unemployment rate (2009-2017) (percent)

It should be noted that difference in the relationship between income, the LFPR and the LFPR
with different educational levels could be caused by discrepancies in economic structure,
labour market and education policies, relatively poorer countries with low technological level,
such as Cambodia and Laos, may need to use more labour, rather than physical capital, for their

71