PUTRAJAYA, 12 MAY — Malaysia’s labour market remained stable in March 2026 with the unemployment rate unchanged at 2.9 percent, supported by continued employment growth and labour force participation, according to the Malaysian Labour Force Statistics, March and First Quarter 2026 released by the Department of Statistics Malaysia (DOSM).
Chief Statistician Datuk Seri Mohd Uzir Mahidin said the positive economic outlook throughout the month allowed the country’s labour market to maintain stable growth momentum.
“The labour force increased by 0.1 percent to 17.31 million people in March 2026 compared to 17.30 million people in February, while the labour force participation rate (LPFR) remained at 70.9 percent,” he said in a statement today.
Mohd Uzir said the number of employed people also increased by 0.1 percent to 16.80 million people, compared to 16.79 million recorded in the previous month.
At the same time, he said the number of unemployed recorded a slight increase of 0.4 percent to 509,000 people compared to 506,800 people in February, thus leaving the unemployment rate unchanged at 2.9 percent.
The Chief Statistician said the workers category comprised the largest share of total employment at 75 percent, with a slight increase to 12.60 million people in March compared to 12.59 million previously.
“At the same time, the number of self-employed also recorded an increase of 0.3 percent to 3.14 million people compared to 3.13 million in February,” he said.
Mohd Uzir said the services sector remained the main contributor to employment growth, particularly in accommodation activities as well as food and beverage services, information and communication, as well as transportation and storage activities.
“The manufacturing, construction and agriculture sectors also recorded an increase in employment, while the mining and quarrying sectors recorded a slight decrease,” he said.
Regarding unemployment, Mohd Uzir said the actively unemployed are defined as those who are ready to work and actively looking for work, comprising 79.7 percent of the total unemployed, increasing by 0.3 percent to 405,800 people in March compared to February’s 404,700 people.
At the state level, Mohd Uzir said the Federal Territory of Putrajaya recorded the lowest unemployment rate at 1.3 percent, followed by Pahang at 1.9 percent, while Selangor and Melaka each recorded two percent.
He said the Federal Territory of Putrajaya also recorded the highest KPTB at 79.2 percent, followed by Selangor at 78 percent and WP Kuala Lumpur at 76 percent.
Going forward, Mohd Uzir said the Malaysian labour market is expected to remain stable, supported by strong domestic fundamentals and ongoing structural transformation.
“However, growth is expected to be more moderate and increasingly influenced by external developments, particularly the direction of the global energy crisis and the geopolitical situation.”
“In this regard, businesses and the workforce need to be resilient in navigating a more dynamic and uncertain economic environment,” he said.
— BERNAMA
