MALAYSIA’S labour market has reached a significant turning point, with the unemployment rate declining to 2.9 per cent in November, the lowest level recorded in 11 years.
The latest figures underscore a period of stabilisation and renewed momentum, as more Malaysians return to work and economic confidence continues to strengthen.
Human Resources Minister Datuk Seri R. Ramanan said the latest data reflects a labour market that is gradually consolidating its recovery, supported by sound economic management and steady growth prospects.
He attributed the positive trajectory to the strengthening of the national economy under the leadership of Prime Minister Datuk Seri Anwar Ibrahim, noting that broader economic reforms are beginning to translate into tangible employment outcomes.
“This decline in unemployment is supported by an increase in employment, which reached 17.09 million, and the employment-to-population ratio rose to 68.8 per cent, showing that more Malaysians are entering the job market,” he said in a statement on Saturday (Jan 10).
Beyond job creation, Ramanan highlighted sustained participation in the workforce as a key indicator of public confidence. The labour force participation rate remained firm at 70.9 per cent, suggesting that Malaysians continue to view the labour market as capable of offering stable and meaningful employment opportunities.
“A high participation rate indicates that the country's economic fundamentals are healthy and resilient,” he added.
The minister also pointed to improvements in job structure and employment quality, with wage earners accounting for 74.8 per cent of the total workforce. This, he said, reflects growth in formal employment and stronger social protection for workers, reinforcing the overall stability of the labour market.
“These positive trends are not the end but a stepping stone for the Human Resources Ministry to continue strengthening the labour market, aligning it with industry needs and preparing for future demands to keep the economy competitive,” he said.
Looking ahead, Ramanan said the ministry remains focused on deepening labour market reforms under the Madani Economic Framework, with an emphasis on ensuring long-term competitiveness while maintaining inclusivity.
He said key priorities include upskilling and reskilling programmes, the implementation of progressive wage policies, and continued efforts to raise job quality and enhance worker protection.
Ramanan reaffirmed the government’s commitment to inclusive and sustainable economic growth that delivers benefits across all segments of society.
“I have directed the HR Ministry to continue advancing quality employment through training, skills development, and labour market reforms to ensure that economic growth translates into the well-being of the people,” he said. - January 11, 2026
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