Malaysia’s labour market continued to expand in the third quarter of 2025, reaching 9.16 million jobs. According to the Department of Statistics Malaysia (DOSM), total jobs increased by 1.7% year-on-year, reflecting stable economic activity and sustained demand for labour across major sectors. The increase also demonstrates the labour market’s ability to absorb employment needs even as technological adoption accelerates.

Growth In Filled Jobs

A total of 8.97 million jobs were filled in Q3 2025, marking a 1.7% increase compared with the same period last year. This represented 97.8% of all available jobs and indicates strong labour absorption by employers.

The Services sector contributed the most with 53.1% of filled positions, followed by Manufacturing at 26.9% and Construction at 13.9%. The distribution reflects Malaysia’s continued shift toward a service-oriented economy, supported by steady activity in retail, logistics and business services.

Semi-skilled roles formed the largest share at 62.5%. The prevalence of semi-skilled work suggests ongoing demand for operational and technical roles that support production, service delivery and day-to-day business activities. Skilled and low-skilled roles accounted for smaller portions, at 25.2% and 12.3% respectively.

Higher Number Of Job Vacancies

Job vacancies rose to 197.1 thousand in Q3 2025, an increase of 2.8% year-on-year. Manufacturing remained the sector with the highest demand, posting 114.7 thousand openings. The electrical, electronic and optical products subsector and the petroleum, chemical, rubber and plastic products subsector led this demand, reflecting the continued importance of export-driven and industrial activities.

Agriculture recorded 32.0 thousand vacancies and Construction registered 25.2 thousand. The vacancy pattern shows that labour demand extends across traditional and industrial sectors, with Manufacturing continuing to rely on semi-skilled workers to meet production needs. Semi-skilled vacancies made up 56.4% of total openings, showing consistent demand for workers who can support hands-on, technical or machine-assisted tasks.

New Jobs Created Continue To Increase

A total of 32.3 thousand new jobs were created in Q3 2025, up 1.6% from the same quarter last year. The Services sector accounted for 48.3% of new roles, indicating continued expansion in commerce, hospitality, healthcare and business services.

Manufacturing created 37.7% of new jobs, while Construction added 9.6%, signalling ongoing development activity across multiple sectors.

Semi-skilled positions remained the largest share of new roles at 64.3%. The data suggests that even as artificial intelligence and automation become more common, industries continue to create operational and support roles that require consistent human involvement. Skilled jobs made up 25.3% of new positions, with low-skilled roles representing 10.4%.

Sector Contribution To Labour Demand

The Services sector accounted for 52.2% of total labour demand in Q3 2025. Manufacturing contributed 27.5%, and Construction made up 13.9%. Agriculture accounted for 5.5% and Mining and quarrying for 0.9%.

The ranking of sectors remained consistent across filled jobs, vacancies and new jobs created. This stability demonstrates that Malaysia’s employment landscape continues to be driven by the Services and Manufacturing sectors, both of which require large workforces to support domestic consumption, trade and industrial output.

Skills Distribution In The Whole Workforce

Semi-skilled roles accounted for 62.3% of total labour demand. Skilled roles represented 25.2% while low-skilled roles made up 12.5%.

The persistent demand for semi-skilled workers across filled positions, vacancies and new job creation suggests industries are prioritising roles that require technical execution, operational support and practical competencies. This distribution reflects Malaysia’s current economic structure, which is anchored in production, services and construction activities that rely on a balanced mix of skilled and semi-skilled talent.

Labour Market Supported By Higher Employment

The total number of employed persons increased by 3.1% year-on-year, reflecting broader economic expansion during the period. DOSM noted that the growth is supported by technological adoption, higher productivity and continued business activity across sectors.

The combination of rising employment, more jobs and higher job creation indicates a labour market that is expanding steadily and adjusting to shifting demands linked to innovation, automation and evolving industry needs.

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