MALAYSIA’S unemployment rate has fallen to 3.1 per cent as of February 2025, marking its lowest level in ten years, according to Human Resources Minister Steven Sim Chee Keong. The improvement reflects significant strides in employment and social protection under the MADANI government, he said.
Speaking during the national-level Labour Day celebration at Axiata Arena, Bukit Jalil, Sim — who is also the Member of Parliament for Bukit Mertajam — reported that the number of employed persons rose from 16.91 million at the end of 2023 to 17.34 million by the close of 2024.
“The MADANI government has increased PERKESO social protection benefits for workers by 20 per cent and implemented over 100 reforms to improve workplace safety and strengthen workers’ bargaining power for more dignified wages,” he said.
Sim also highlighted key policy milestones, including the rise in the minimum wage and the introduction of a progressive wage policy aimed at boosting compensation across the workforce.
“These measures are not just about numbers — they are about dignity, fairness and protecting workers at every level of society,” he added.
The Labour Day celebration attracted over 10,000 attendees from both public and private sectors, underscoring nationwide recognition of the workforce’s importance in driving national progress.
Sim also noted a rise in labour force participation to 70.6 per cent, with a significant increase among women — up to 56.8 per cent. Meanwhile, the rate of underemployment in roles not aligned with workers’ skill levels fell from 37.4 per cent in 2023 to 36 per cent.
“Our Technical and Vocational Education and Training (TVET) graduates are doing particularly well — the graduate employability rate has now reached 94 per cent. Congratulations to the TVET sector,” he said.
The minister also reported substantial gains in social security coverage. PERKESO contributors in the formal sector now total 9.9 million, while contributions from self-employed workers have climbed to 900,000, compared to 700,000 in 2023.
Coverage under the Housewives’ Social Security Scheme (SKSSR) also saw major growth, with over 500,000 contributors now registered — more than doubling from just 200,000 the previous year.
