Malaysia’s labour market outlook remains positive in 2025, following performance in Q4 2024: DOSM

Looking at labour demand in Q4 2024, the total job positions increased by 1.3% to 9.05mn with a job-filling rate maintaining at 97.9% — equivalent to 8.86mn filled jobs.

The Department of Statistics Malaysia (DOSM) has released its labour market review for the fourth quarter of 2024.

Published on 21 February 2025 (Friday), the review noted that the nation’s economy had strengthened in the quarter, with 17.34mn persons in the labour force, reaching a labour productivity value of RM25,647 per employment.

On a year-on-year outlook, the labour force increased by 2.5%; while on a quarter-on-quarter basis, it increased by 0.4%.

According to a separate report covering the labour productivity of Malaysia, the country's economy grew 5% in the quarter, which is equivalent to a value added of RM430,686mn. In the same quarter, the labour productivity per hour worked increased by 1.4%, with the value added per hour worked rising to RM44.2 (Q3: RM43.3 per hour). This was attributed to the 3.5% increase in the total hours worked, registering 9.7bn hours.

Looking at 2024 as a whole, the labour productivity per hour worked grew rapidly by 2.1%, a stark contrast to the 0.1% growth in 2023. The value added per hour worked in 2024 was recorded at RM42.8 per hour while the previous year was at RM41.9 per hour.

Following the trend of increment, the labour productivity per employment saw a growth of 2.2% in the fourth quarter, with a recorded value added per employment at RM25,647 per person while the total number of persons employed saw a year-on-year growth of 2.7% (RM99,137 per person).

At the same time, the country's labour force participation rate noted an increase to 70.6% in the quarter, driven by a growth in the number of employed persons to stand at 16.79mn.

How unemployment and labour demand fared in Malaysia in Q4 2024

According to DOSM, the unemployment rate in Q4 2024 remained stable at 3.2%, with the number of unemployed persons "slightly decreasing" to 546,900. On a year-on-year basis, the unemployment rate fell 0.1 percentage points.

Additionally, the number of persons working less than 30 hours per week decreased by 2.5% while time-related unemployment declined by 3.6% as well.

Looking at labour demand, the total job positions increased by 1.3% to 9.05mn with a job-filling rate maintaining at 97.9% — equivalent to 8.86mn filled jobs. This is a 1.3% increase compared to the same quarter in 2023.

As a whole, job vacancy rates remained stable at 2.1% with a slight increase in vacancies to 193,600.

As Malaysia progresses into 2025, it is predicted that the labour market will continue to thrive and remain positive with a stable job growth. Key sectors such as manufacturing (particularly in electrical and electronics) and services are expected to drive more job creations.

For the full infographics illustrating the data, view here.

READ MORE: Malaysia records strongest economic performance in 12 years in 2024: DOSM

Lead image/ Department of Statistics Malaysia Labour Market Review