MALAYSIA’S unemployment rate held steady at 3.0 per cent in June, although the number of unemployed people rose 0.9 per cent month-on-month to 517,800, signalling a modest increase in labour market slack despite continued employment growth.
The Department of Statistics Malaysia (DOSM) said the labour market remained on a positive footing, supported by resilient domestic economic activity and sustained gains in employment.
The number of employed people edged up 0.01 per cent to 16.83 million in June from 16.82 million in May, while the labour force stood at 17.34 million.
The labour force participation rate remained unchanged at 70.9 per cent.
“The labour force stood at 17.34 million, while the labour force participation rate remained at 70.9 per cent.
“Of the total unemployed, 79.4 per cent were actively unemployed, meaning they were available for work and actively seeking employment, with the number rising to 410,900,” DOSM said in a statement.
Among the active unemployed, 63.6 per cent had been without work for less than three months, while 5.3 per cent were classified as long-term unemployed, having been out of work for more than a year.
Youth unemployment remained a key pressure point, with the rate among those aged 15 to 24 holding at 10.2 per cent, involving 292,200 people. The unemployment rate for those aged 15 to 30 remained at 6.3 per cent.
For the second quarter of 2026, the unemployment rate rose to 3.0 per cent from 2.9 per cent in the first quarter, while the number of unemployed people increased 0.6 per cent to 509,700.
Employment expanded 0.2 per cent to 16.77 million during the quarter, while the labour force grew 0.3 per cent to 17.28 million.
Looking ahead, DOSM said the economic and labour market outlook from July remained positive, supported by relatively stable domestic economic conditions, continued investment activity and the resilience of the labour market.
“However, uncertainties in global energy markets, geopolitical developments and external trade conditions could put pressure on business costs and hiring decisions if the risks persist,” it said. - August 11, 2026
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