MALAYSIA'S unemployment rate dropped to 3.1% in December 2024, marking the lowest level in nearly a decade.
This rate matches that recorded in May 2015, the last time it stood at 3.1%.
Department of Statistics Malaysia (DOSM), in its report titled Labour Force Survey Report Malaysia, Fourth Quarter 2024, revealed today that the number of unemployed individuals decreased by 0.4%, from 546,700 in November to 544,300 in December., last year.
The labour force grew slightly by 0.1% from November, reaching 17.32 million people in December, up from 17.29 million the previous month.
Chief Statistician of Malaysia Datuk Seri Dr Mohd Uzir Mahidin, in a statement today, attributed the drop in the unemployment rate to robust economic growth and an improving labour market at the close of 2024.
He highlighted that the positive performance of Malaysia's labour market in 2024 was largely driven by sustained demand across various sectors, particularly in the private sector, which experienced an increase in job opportunities.
"The outlook for Malaysia's labour force in 2025 remains optimistic, with steady employment growth anticipated," Uzir said. He pointed out that key industries such as manufacturing—especially electrical and electronics—and services would continue to be key drivers of job creation.
Notably, unemployment rates among youth also improved. The rate for those aged 15 to 24 fell by 0.1 percentage points to 10.3%, equating to 299,700 people, while the rate for the 15-30 age group decreased to 6.1%, affecting 410,800 individuals.
Economic indicators also point to positive growth
Malaysia's Leading Index (LI) rose by 2.5% in November 2024, reaching 112.6 points, up from 109.9 points in November 2023.
This increase was largely driven by a 24.6% surge in the Bursa Malaysia Industrial Index. Despite a slight dip in the number of housing units approved (-0.2%) and new companies registered (-0.1%), the LI showed positive momentum, and Malaysia’s economy is projected to continue expanding, supported by strong domestic demand and robust global demand for semiconductor-related exports.
In the fourth quarter of 2024, Malaysia's GDP advanced by 4.8%, slightly below the 5.3% growth recorded in the previous quarter.
The Services, Manufacturing, and Construction sectors drove this expansion, with growth rates of 5.3%, 4.3%, and 19.6% respectively.
However, the Agriculture and Mining & Quarrying sectors saw declines of 0.6% and 1.4%, respectively.
On a quarter-on-quarter basis, the economy grew by 2.5%, compared to a 4.6% increase in the third quarter.
The report cited that Malaysia's economic performance has attracted international investments, leading to business expansion and further job creation.
In Penang, the investment by Dexcom Incorporated is expected to create 3,000 jobs, enhancing both the state's economy and its position as a global tech hub.
The tourism sector has also contributed to the economy’s resilience, with increasing tourist arrivals boosting the labour market.
The growth of Micro, Small, and Medium Enterprises (MSMEs) has generated additional job opportunities, improving overall employment conditions.
Government initiatives are also playing a significant role in job creation. Investments in Malaysia's digital economy, worth RM254.7 billion, and semiconductor projects in Kedah valued at RM30.1 billion are expected to drive further economic growth.
Additionally, initiatives like the Bumiputera Economic Transformation Plan 2035 (PuTERA35) and the Public-Private Partnership Master Plan 2030 (PIKAS) aim to improve Bumiputera economic participation and promote socio-economic balance.
Despite challenges like the severe floods in the fourth quarter of 2024, which affected agriculture and infrastructure sectors in several states, government intervention has successfully supported employment and job stability.
Human Resources Minister Steven Chee Keong urged employers to uphold fair labour practices during the crisis.
Year-end festivities and school holidays also boosted consumer spending, further stimulating business activity and increasing labour demand.
Overall, Malaysia’s labour market remained stable in 2024, buoyed by strong domestic demand, global trade recovery, international investment, and tourism activities, all contributing to increased employment and a low unemployment rate. – February 10, 2024
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