MALAYSIA'S labour market is facing growing recruitment pressures as job vacancies expand significantly faster than jobseeker applications, with the average number of applications per advertisement falling 17.6 per cent in the third quarter of 2026.
Job advertisements increased 42 per cent year-on-year during the quarter, compared with a 17 per cent rise in applications, according to data from Jobstreet by SEEK Malaysia.
The widening gap was particularly evident in the retail and consumer products sector, where vacancies surged 202.3 per cent, while applications grew by just 43.5 per cent.
Engineering also recorded a significant disparity, with job advertisements rising 58 per cent against application growth of 12.6 per cent.
Jobstreet by SEEK Malaysia managing director Nicholas Lam said the figures highlighted the growing challenge for employers in attracting candidates with the appropriate skills and experience.
“Employers in these sectors need to focus not only on increased recruitment activity but also on their ability to attract candidates with the right skills and experience.
“However, application volumes alone should not be taken as an indication that a sector is facing a shortage of skilled workers or as a measure of whether vacancies have been successfully filled,” he said in a statement.
The imbalance was also pronounced in Penang and Johor, where job advertisements rose 69.5 per cent and 52.2 per cent respectively, while applications increased by just 8.5 per cent and 19.8 per cent.
Department of Statistics Malaysia data showed that unemployment in Penang and Johor stood at 2.7 per cent and 2.4 per cent respectively in the third quarter, below the national rate of three per cent.
Job opportunities expanded across all experience levels, with entry-level vacancies recording the strongest growth at 56.2 per cent year-on-year.
Mid-level positions increased 42.6 per cent, while senior-level vacancies rose 29.8 per cent.
Lam said the stronger growth in entry-level opportunities was encouraging for new entrants to the labour market, although candidates still needed to consider the qualifications and experience required for individual positions.
Meanwhile, skills-related underemployment among tertiary-educated workers stood at 35 per cent in the third quarter, marginally lower than 35.2 per cent in the preceding quarter, DOSM data showed.
The measure refers to tertiary-educated employees working in semi-skilled or low-skilled occupations, underscoring the continuing mismatch between workers' qualifications and job requirements.
Lam said employers should identify the specific competencies required for each position while considering relevant experience candidates might have gained in other sectors.
“This approach can broaden the pool of potential candidates while helping workers secure jobs that better match their skills and qualifications.
“For jobseekers, recruitment trends across sectors and locations can also serve as a guide to identifying employment opportunities and the skills they need to develop to improve their employability,” he said. - November 13, 2026
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