CNI News

10 April 2025

The aftermath of the powerful earthquake that struck Myanmar could lead to higher unemployment rate in 2025, economists told CNI News. 

The earthquake damaged most of the places in Mandalay, second biggest economic city of Myanmar and as the reconstruction of the city could take a long time, the rate of unemployment could increase, Ko Zaw Min Naing, an economic and agricultural advisor, told CNI News.

"There is a possibility that the unemployment rate will increase. Mandalay is the second largest city. There are many businesses operating there. Now the whole city is in ruins. Some businesses have stopped. In short, the unemployment rate will increase. It will take some time to rebuild the city. So it will be difficult for businesses to start operating immediately, especially the businesses in more affected areas of Mandalay. The unemployment rate will increase slightly compared to before, and I think the rate of emigration abroad will increase as well." he said.

While seeing a house that collapsed due to the earthquake

International reports indicate that Myanmar's unemployment rate was 1.33 percent in 2021, 2.53 percent in 2022, and 3.69 percent in 2023. 

In Myanmar, where unemployment rate is increasing year by year, as private businesses and government institutions have been damaged by the current earthquake, businesses will remain temporarily suspended until reconstruction is finished.

Economists said that it was impossible to complete the recovery process quickly. It was necessary to think that one citizen had been poor was equal to that the country had been poor, U Htay Aung Kyi, a banking expert, told CNI News.

While seeing rescue operations were being conducted at a house that collapsed due to the earthquake

" In my opinion, it is necessary to think that one citizen has been poor is equal to that the country has been poor. Both private businesses and government tasks in Mandalay could be suspended. Mandalay is the second most populous city in Myanmar and the business capital as well. And it's the center of Upper Myanmar. Many businesses were damaged by the earthquake there. So, staff in the private businesses and companies may be jobless. Demand will fall." he said.

The 7.7 magnitude earthquake that struck Myanmar on March 28 caused extensive damage to government and private businesses in Naypyidaw, Mandalay, and Sagaing, but the exact amount has not been released.

Rescue operations are ongoing due to the damage and collapses, but cleanup and rehabilitation efforts have not yet begun. Furthermore, any group that will provide relief from the earthquake will not be allowed to operate independently and must seek prior approval from the SAC, said the SAC Vice Chairman Vice Senior General Soe Win at a meeting in Naypyidaw on April 5.