DOSM: Malaysia’s job market stable amid global supply crisis

PUTRAJAYA, July 10 — Malaysia’s unemployment rate held steady at 3.0 per cent in May 2026, with 513,400 people unemployed, according to the latest data from the Department of Statistics Malaysia (DOSM).

The figures, released in the May 2026 Labour Force Statistics report, indicate a moderately improving labour market supported by stable economic growth, despite an ongoing global supply crisis.

The total labour force grew by 0.1 per cent month-on-month to 17.34 million persons, while the labour force participation rate remained unchanged at 70.9 per cent.

Employment saw a marginal increase of 0.1 per cent, reaching 16.82 million persons. Of these, 75 per cent fall under the “employees” category, which grew slightly to 12.61 million. Own-account workers also saw a small uptick of 0.1 per cent, totalling 3.15 million.

From a sectoral lens, the services sector remains the primary engine of employment. The largest shares of jobs were concentrated in wholesale and retail trade, accommodation and food and beverage services, and information and communication activities. Other key sectors, including manufacturing, construction, agriculture, and mining and quarrying, also reported growth in their workforce.

Unemployment landscape

Of the total unemployed, 79.5 per cent are “actively unemployed” — those available for work and actively seeking jobs. This group rose by 0.2 per cent to 408,000 persons. Within this segment, 63.9 per cent have been unemployed for less than three months, while 5 per cent are facing long-term unemployment of over a year.

Conversely, the “inactively unemployed”, those who believe no jobs are available, increased by 0.7 per cent to 105,500 persons.

Youth unemployment remains a point of focus. For those aged 15 to 24, the rate remained unchanged at 10.2 per cent (291,600 persons). For the 15 to 30 age group, the rate stood at 6.3 per cent, with 396,000 unemployed youths.

Meanwhile, the number of people outside the labour force rose marginally to 7.10 million. The primary reasons for this remained housework or family responsibilities (43.3 per cent) and schooling or training (40.5 per cent).

DOSM expects the labour market to remain resilient, bolstered by favourable domestic conditions and sustained investment. While external uncertainties may impact hiring in specific industries, overall stability is expected to persist.

The report said that enhancing labour productivity and better aligning workforce skills with industry demand will be critical for long-term economic growth.