Myanmar unemployment rate rising as a result of the coup

04 February 2023
Myanmar unemployment rate rising as a result of the coup

Mizzima 

Workers’ groups claim 2023 will see a significant rise in unemployment in Myanmar as factories and businesses suffer as a result of the 2021 military coup. 

These factories and industries are facing power outages, rising costs for petrol and diesel, and the pressures are leading to business closures and layoffs.  

The Federation of General Workers Myanmar (FGWM) said in last October that nearly 200 factories and industries in Yangon Region alone had submitted for closure of their businesses.

A labour activist said that these factories and industries had to close and stop their businesses because of rising input costs and general crises besides facing difficulty in getting enough electrical power for their businesses.

On the other hand, the workers were facing problems of exploitation of their wages, not getting overtime wages, losing labour rights and many other difficulties, a spokesman for FGWM said.

The workers are facing difficulties in finding jobs and rising commodity prices so that they have to work odd and menial jobs for their livelihood.

According to the surveys conducted by FGWM, most of the factories and industries in Hlaingtharyar, Shwepyithar and Mingladon industrial zones had applied for closure of their businesses in 2023.

According to the figures released by the International Labour Organization (ILO), 1.6 million people were unemployed after the coup, with over 300,000 being garment industry workers.

International Organization of Migration (IOM) report issued on 28 December 2022 said that the military took power in a coup while the country was in economic downturn due to COVID-19 pandemic and then the country faced unrest elsewhere due to armed conflicts and then the economic situation was worsened amid instability in the country which caused the scarcity of employment.

IOM estimates that approximately 40,000 Myanmar nationals are leaving the country monthly due to conflict-related issues but also due to economic and other reasons.