Malaysia Jobless Rate Unchanged at Eight-Month High

Malaysia’s unemployment rate held steady at 3.0% in May 2026, unchanged from the previous month and staying at its highest level since October 2025. The number of unemployed persons increased to 513.4 thousand from 511.8 thousand in April, indicating continued softness in the labor market. Meanwhile, total employment was little changed at 16.82 million. The labor force rose marginally to 17.34 million from 17.33 million in April, with the labor force participation rate remaining stable at 70.9%. The number of people outside the labor force was steady at 7.10 million. Looking ahead, Malaysia’s labor market is expected to remain resilient, supported by favourable economic conditions, sustained investment activity and ongoing structural transformation.

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.