Malaysia’s labour market shows steady growth: 16.73mn employed as of February 2025

The unemployment rate held at 3.1%, while more Malaysians joined the workforce across key sectors.

Malaysia’s labour market continued to show encouraging signs in February 2025, as more people entered the workforce and fewer remained unemployed, according to the Department of Statistics Malaysia (DOSM).

The latest Labour Force Statistics, published on 11 April (Friday), showed that the number of employed persons increased to 16.73mn, up by 0.3% from January (16.68mn). At the same time, the number of unemployed dropped slightly by 0.2% to 532,800, maintaining the country’s unemployment rate at 3.1% from January 2025.

More people are working, and more are looking for work

The total labour force which includes both employed and unemployed individuals rose to 17.27mn people in February, compared to 17.22mn in January. This increased the labour force participation rate to 70.7%, showing that more Malaysians are either working or actively seeking work.

Employees made up the largest group of workers (75.2%), increasing to 12.59mn; while the number of own-account workers such as gig workers, and small business owners rose by 0.6% to 3.13mn.

Where are people finding work?

Most jobs continued to be concentrated in the services sector, particularly in:

• Accommodation and food & beverage services
• Wholesale & retail trade
• Information & communication

Employment in the manufacturing, construction, and agriculture sectors also showed positive growth. However, jobs in the mining & quarrying sector saw a decline.

What about unemployment?

While the overall unemployment rate stayed at 3.1%, there were small but positive movements:

• The number of unemployed persons fell to 532,800 from 533,800 in January.
• Out of these, 79.3% were actively seeking jobs, with 63.7% being unemployed for less than three months.
• A smaller group of 5.6% had been jobless for more than a year.
• Meanwhile, those who were not job hunting because they believed no jobs were available also known as the inactively unemployed dropped slightly to 110,100 as compared to 110,200 in January.

Youth unemployment

Unemployment among youth aged 15-24 remained at 10.3%, affecting 298,900 individuals — unchanged from January. For those aged 15–30, the rate stayed at 6.3%, with 401,600 unemployed.

Who is not in the labour force?

About 7.15mn people were considered outside the labour force in February. These are individuals not working and not looking for work. The majority were either:

• Housework and family responsibilities (43.7%), or
• Schooling or training (41.6%).

Malaysia’s labour market is expected to remain stable in the coming months, supported by ongoing projects, rising incomes, and a diversified economy. Government efforts to boost inclusivity, reduce reliance on foreign labour, and promote automation are also likely to support job creation and productivity.

Lead image / DOSM Facebook