MALAYSIA’S labour market remained stable at the start of the year, with the national unemployment rate holding steady at 2.9 per cent in January 2026, according to the latest Labour Force Statistics released by the Department of Statistics Malaysia.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the country’s labour market continued to expand in line with encouraging economic growth, supported by steady employment gains and persistently low unemployment.
“Therefore, the labour force continued to show positive momentum during the month, rising 0.1 per cent month-on-month to 17.28 million persons (December 2025: 17.27 million persons),” he said in a statement issued on Wednesday.
He added that labour force participation also recorded a slight increase, reflecting stronger engagement in the workforce.
“In line with that, the labour force participation rate increased by 0.1 percentage point to 70.9 per cent (December 2025: 70.8 per cent), indicating greater participation in the labour market,” he said.
Employment levels also edged higher in January, with the number of people in work rising marginally by 0.04 per cent to 16.77 million compared with 16.76 million in December 2025.
At the same time, the number of unemployed persons increased slightly by 0.3 per cent to 509,600 individuals, up from 508,000 recorded the previous month.
“The unemployment rate in January remained at 2.9 per cent, the same as in the previous month,” Mohd Uzir said.
Looking ahead, he noted that Malaysia’s labour market is expected to remain resilient in the coming months, with unemployment likely to stay low amid steady labour demand.
“Labour force participation is also expected to remain stable following the balanced recovery of the services sector, tourism and technology exports,” he said.
He added that job opportunities are anticipated to expand particularly in high-technology and services subsectors, driven by automation, artificial intelligence, digitalisation and foreign investment.
“Despite global uncertainties, strong domestic economic fundamentals and stable labour demand and supply are expected to continue supporting the growth of Malaysia’s labour market,” he said. - March 11, 2026
