Malaysia’s unemployment rate remained unchanged at 3.0% in October 2025, with 518.9 thousand unemployed persons recorded during the month. These figures were published in the Department of Statistics Malaysia’s latest Labour Force Survey release.

Chief Statistician Malaysia, Datuk Seri Dr Mohd Uzir Mahidin, stated that the labour market continued to improve, supported by ongoing economic activity. The labour force expanded by 0.2% to 17.58 million persons, consistent with the participation rate of 70.9% reported in September.

Employment Growth Continues

The number of employed persons increased to 17.06 million in October 2025, marking a 0.2% rise from the previous month. Unemployment remained broadly stable, increasing only slightly from 518.6 thousand persons in September to 518.9 thousand persons in October.

Employees made up 74.8% of total employment and grew marginally to 12.76 million persons. Own-account workers also recorded an increase of 0.4% to 3.25 million persons.

Sector-Level Employment Trends

Employment in the Services sector continued to strengthen, driven mainly by accommodation and food services, wholesale and retail trade, and information and communication activities. Agriculture, manufacturing, and construction also posted increases in employment. Only the mining and quarrying sector recorded a decline.

The number of persons working fewer than 30 hours per week continued to fall, declining by 1.4% to 233.2 thousand persons. Time-related underemployment dropped to 126.4 thousand persons, representing a rate of 0.7%.

Breakdown Of Unemployment

Actively unemployed persons accounted for 79.7% of total unemployment, with a slight increase to 413.8 thousand persons. Most of this group had been unemployed for less than three months, while 5.0% experienced long-term unemployment exceeding one year. Inactively unemployed persons, defined as those who believed jobs were not available, rose to 105.1 thousand persons.

Unemployment among Gen Z Malaysians aged 15 to 24 stayed at 10.1%, affecting 297.6 thousand individuals. The unemployment rate for those aged 15 to 30 years eased to 6.1%.

Malaysians Outside The Labour Force

The number of people outside the labour force reached 7.22 million in October 2025. Housework and family responsibilities remained the most common reason, accounting for 43.6%, followed by schooling or training at 40.7%. Overall, the data indicates stable labour market conditions across the period.

Outlook For Malaysia’s Labour Market

According to the Chief Statistician Malaysia, the labour market is expected to remain stable in the coming months. Moderate economic growth, ongoing investments, and human capital development are anticipated to support resilience. Potential external pressures include trade volatility and softer global demand, although Malaysia’s labour market is expected to stay competitive and inclusive.

Follow us on our official WhatsApp channel for the latest money tips and updates.