Malaysia’s private sector recorded 9.23 million jobs in the first quarter of 2026, a 1.8% increase from the same period last year, according to the Department of Statistics Malaysia (DOSM) Employment Statistics, First Quarter 2026 report released on 14 May.

The growth follows a similar pace from the previous quarter, when total jobs reached 9.21 million. Of the 9.23 million positions available this quarter, 97.9% were filled, leaving about 194,800 vacancies across the economy. An additional 32,700 new jobs were created during the quarter.

Services Sector Leads Hiring

The services sector accounted for more than half of all filled positions in Q1 2026, making up 53.3% of the total, or about 4.82 million jobs. Manufacturing followed at 26.7% (2.41 million), with construction at 13.9% (1.25 million).

If you work in retail, food and beverage, logistics, or finance, the services sector’s 2.7% year-on-year growth in filled jobs was the strongest across all sectors during the quarter. Wholesale and retail trade alone created 9,300 new jobs, the largest contributor to new positions in the economy.

Most Vacancies Are In Manufacturing

While services may be the largest employer, manufacturing had the most vacancies in Q1 2026 at 113,000, or 58% of all unfilled positions. Within that, electrical, electronic, and optical products accounted for 34,900 vacancies, and petroleum, chemical, rubber, and plastic products had another 18,900.

Agriculture had the second-highest share of vacancies at 32,000 (16.4%), followed by services at 24,600 (12.7%).

If you are looking for work in Electrical or Electronic engineering or related manufacturing sub-sectors, employers are still struggling to fill these positions, even as overall employment stays high.

Semi-Skilled Roles Dominate The Job Market

Semi-skilled roles made up 62.2% of all filled jobs in Q1 2026 (5.62 million), compared with 25.3% for skilled roles (2.28 million) and 12.5% for low-skilled positions (1.13 million).

Of the 32,700 new jobs added during the quarter, 64.1% (21,000) were semi-skilled, 26.1% (8,600) were skilled, and 9.8% (3,200) were low-skilled.

Most of the positions being filled and created require hands-on or operational competencies, not degrees. That connects to the skills-related underemployment issue DOSM has flagged repeatedly, where graduates end up in roles that do not fully use their qualifications.

New Job Creation Slowed Slightly

While hiring stayed strong, the pace of new job creation dipped 1.5% compared with Q1 2025, when 33,200 positions were added. The first quarter of 2026 saw 32,700 new jobs.

The decline is small. The services sector contributed the most new roles (15,900), followed by manufacturing (11,900) and construction (3,200).

But if new job creation keeps easing while existing roles stay filled, competition for fresh openings gets tighter, even in a market that looks healthy on paper.

Rising Costs Are Squeezing Employers

Chief Statistician Dato’ Sri Dr. Mohd Uzir Mahidin said businesses are facing higher operating expenses due to rising energy prices and freight costs linked to the ongoing conflict in West Asia. The government’s contingency measures, including fuel subsidy rationalisation, have helped cushion the impact so far.

When operating costs rise, employers tend to slow hiring or hold off on salary increases. The current minimum wage of RM1,700 and median formal sector salary of around RM2,864 provide reference points, but wage growth going forward may depend on how well businesses absorb these cost pressures.

The employment picture remains stable. Unemployment is at 2.9% as of Q1 2026, the lowest since 2014, and employed workers reached 16.73 million. Jobs are there. Whether they match the qualifications and pay you are after is a different matter, especially if you hold a degree and the bulk of openings are semi-skilled.

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