Myanmar’s unemployment rate likely to soar in 2023

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Yangon, January (8)

The unemployment rate may rise further in 2023, as there have been reports of factories and manufacturers closing across the country during the nearly two-year military coup, the labor activists told Than Lwin Times.

During the military coup, the factories were unable to operate due to power shortages and high fuel prices while some businesses have reported to the relevant departments for permission to close.

According to the Myanmar Garment Manufacturers Association (MGMA), nearly 200 factories have proposed for closure in Yangon alone following the coup.

Due to widespread issues including power outages, high input prices, and more manufacturers and factories have been closure, and halting the issuance of passports when young people are planning to work abroad could lead to higher unemployment and more crime.

The majority of the factories in the industrial zones of Hlaing Thayar, Shwe Pyi Thar and Mingalandon have submitted applications to close their doors in 2023, according to surveys done by the Federation of General Workers Myanmar (FGWM).

Workers, on the other hand, deal with issues including wage exploitation, unpaid overtime, and loss of labor rights, according to Daw Ei Ei Phyu, spokesperson of FGWM.

According to the International Labor Organization (ILO), approximately 1.6 million people have been unemployed in Myanmar since the military coup, with over 300,000 of them being garment workers.

The military seized power when Myanmar was facing an economic downturn due to the COVID-19 epidemic, and as a result, conflicts, instability, and economic problems have led to an increase in unemployment, according to the report by International Organization for Migration (IOM) on December 28, 2022.

According to the IOM, approximately 40,000 people leave the country every month as a result of economic crises and armed conflicts following the military coup.

News-Than Lwin Times

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