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Impacts and Consequences of Unemployment Insurance

The unemployment insurance schemes have been implemented in 98 countries worldwide, with developed countries leading the list. According to International Labour Organisation (ILO) estimates, 32% of workers around the globe were protected under mandatory unemployment insurance schemes in 2017. Unemployment insurance benefits were introduced in Malaysia in January 2018 under Employment Insurance Act 2018 (Ac 800) as a tool to assist the unemployed during their unemployment spell.

Since its inception in Malaysia in 2018, there is not yet any policy evaluation being made to evaluate its effectiveness in sustaining the livelihood of the unemployed and its impact towards recipients’ job seeking behavior. Hence, this study seeks to examine the impact of the implementation of the employment insurance benefits program in Malaysia towards the livelihood of its recipient. It also aims to understand the nature of Malaysia’s employment insurance benefits program in affecting its recipient’s job-seeking behavior.

For details, please contact our economist:

Muhamad Zharif Luqman Hashim

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