Malaysia Jobless Rate Rises to 3.0%

Malaysia’s unemployment rate rose to 3.0% in April 2026 after holding steady at 2.9% in the previous five months. The number of unemployed persons increased by 0.6% from a month earlier to 511.8 thousand. Meanwhile, total employment continued to expand modestly, rising by 0.1% to 16.82 million, with growth seen across both employees (12.61 million, +0.05%) and own-account workers (3.15 million, +0.2%). Job gains were led by the services sector, particularly wholesale and retail trade, accommodation and food and beverage services, and information and communication, while manufacturing, construction, agriculture, and mining also recorded increases. The labour force edged up by 0.1% to 17.33 million, keeping the labour force participation rate unchanged at 70.9%. The number of persons outside the labour force was broadly steady at 7.10 million, with housework and family responsibilities (43.3%) and schooling or training (40.5%) remaining the main reasons.

Malaysia’s unemployment rate stood at 2.9% in March 2026, remaining unchanged for the fifth straight month and holding at its lowest level since November 2014. The number of unemployed persons rose marginally by 0.4% month-on-month to 509 thousand, while total employment edged up by 0.1% to 16.8 million. Job growth continued to be driven primarily by the services sector, with notable gains in accommodation and food and beverage services, information and communication activities, and transportation and storage. Meanwhile, the labour force participation rate was unchanged at 70.9%. For Q1 2026, the unemployment rate ticked down to 2.9% from 3% in Q4 2025. Looking ahead, Malaysia’s labour market is expected to remain broadly stable, supported by strong domestic fundamentals, ongoing investment activity, and structural reforms. However, employment growth may moderate amid rising external uncertainties, particularly from global energy developments, trade dynamics, and geopolitical tensions.

Malaysia’s unemployment rate stood at 2.9% in February 2026, remaining unchanged for the fourth consecutive month and holding at its lowest level since November 2014. The number of unemployed persons declined by 0.6% from the previous month to 506.8 thousand. Meanwhile, employment rose by 0.1% to 16.79 million, keeping the employment-to-population ratio at 68.8%. Job growth was mainly driven by the services sector, particularly wholesale and retail trade, followed by accommodation and food & beverage services and information and communication activities. By employment status, employees accounted for 75.0% of total employment, increasing slightly to 12.59 million, while own-account workers also rose to 3.13 million. The labor force expanded by 0.1% to 17.30 million, with the labor force participation rate steady at 70.9%. Meanwhile, the number of persons outside the labor force edged down to 7.10 million, mainly due to housework or family responsibilities and schooling or training.