MALAYSIA’S labour market is forecast to maintain its resilience through 2025, underpinned by sustained economic growth and regional leadership, according to the Department of Statistics Malaysia (DOSM).
In its Annual Labour Force Statistics, Malaysia 2024 report released today, DOSM noted that the nation’s job market continued its post-pandemic recovery last year, with the unemployment rate falling to 3.2 per cent – lower than the pre-pandemic level of 3.3 per cent recorded in 2019.
“The number of unemployed persons declined to 534,100, largely driven by a decrease among youths aged 15 to 24,” said the department.
Labour force participation also saw a boost, rising by 3.3 per cent to 16.9 million persons in 2024, up from 16.37 million the previous year. The labour force participation rate (LFPR) hit a record high of 70.6 per cent, compared to 70 per cent in 2023.
The number of employed individuals climbed 3.5 per cent to 16.37 million, and the employment-to-population ratio improved by 0.7 percentage points to 68.4 per cent.
“Of the total employed population, 78.5 per cent were employees, while the number of self-employed rose to 2.52 million, accounting for 15.4 per cent of total employment,” DOSM added.
The majority of workers were in semi-skilled occupations, comprising 56.5 per cent (9.26 million), followed by skilled workers at 4.94 million and low-skilled workers at 2.17 million.
By sector, the services industry remained dominant, accounting for 65.6 per cent of total employment, followed by manufacturing (16.3 per cent), agriculture (9 per cent), construction (8.5 per cent), and mining and quarrying (0.5 per cent).
Underemployment – defined as those working fewer than 30 hours per week due to lack of suitable work – declined by 6.1 per cent to 212,500 people, down from 226,300 in 2023. The underemployment rate eased to 1.3 per cent from 1.4 per cent.
Putrajaya recorded the lowest unemployment rate at 1.1 per cent and the highest LFPR at 78.7 per cent. Meanwhile, five states — Putrajaya, Selangor, Kuala Lumpur, Melaka, and Penang — saw female labour participation exceed the national average of 56.5 per cent.
The number of individuals outside the labour force rose slightly to 7.02 million, with the majority citing domestic responsibilities (43.1 per cent) and education or training (41.3 per cent) as reasons for inactivity.
Looking ahead, DOSM said the labour market is expected to remain resilient, buoyed by Malaysia’s role as ASEAN Chair in 2025 and rural development programmes such as the ASEAN Village Network aimed at enhancing workforce skills and inclusion. - June 30, 2025
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