Post by : Shakul

Malaysia’s labour market remained stable in March 2026 as the country maintained a low unemployment rate of 2.9 per cent, according to the Department of Statistics Malaysia (DOSM). The latest labour force report showed that steady employment growth and continued participation in the workforce helped support the country’s economic stability despite ongoing global uncertainties.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stated that Malaysia’s positive economic conditions during the month allowed the labour market to continue its growth momentum. The country’s labour force increased slightly to 17.31 million people in March compared with 17.30 million in February. At the same time, the labour force participation rate remained unchanged at 70.9 per cent, reflecting stable workforce involvement across the country.

The number of employed persons also recorded a small increase during the month. According to DOSM, total employment rose to 16.80 million people from 16.79 million in February 2026. Employees continued to represent the largest share of the workforce, accounting for around 75 per cent of all employed persons. The number of employees increased marginally to 12.60 million people during the reporting period.

The report also showed a slight rise in the number of unemployed individuals. The total number of unemployed persons increased by 0.4 per cent to 509,000 people in March from 506,800 recorded in February. However, the unemployment rate itself remained stable at 2.9 per cent because the labour market continued expanding at a balanced pace. Officials noted that actively unemployed persons, who are available and actively searching for jobs, represented nearly 80 per cent of the total unemployed population.

Malaysia’s services sector remained the strongest contributor to employment growth. DOSM highlighted that industries such as accommodation, food and beverage services, information and communication activities, transportation, and storage continued hiring more workers during March. Other sectors including manufacturing, construction, and agriculture also recorded positive employment growth, while the mining and quarrying sector experienced a slight decline in job numbers.

At the state level, Putrajaya recorded the lowest unemployment rate in the country at 1.3 per cent. Pahang followed with an unemployment rate of 1.9 per cent, while Selangor and Melaka each recorded rates of 2 per cent. Putrajaya also registered the highest labour force participation rate at 79.2 per cent, followed by Selangor at 78 per cent and Kuala Lumpur at 76 per cent, indicating strong workforce activity in urban economic centres.

Looking ahead, DOSM said Malaysia’s labour market is expected to remain stable in the coming months due to strong domestic economic fundamentals and ongoing structural reforms. However, officials also warned that future growth could be affected by external challenges, including geopolitical tensions and the global energy situation. Economists believe that maintaining employment growth and workforce participation will remain important for supporting Malaysia’s broader economic recovery and long-term development plans.

#Asia News #Malaysia News #Economy #Global Economy