Malaysia’s economy continued to show resilience in September 2025, with the unemployment rate holding steady at 3.0% and total sales in the wholesale and retail trade sector rising to RM158 billion. The Department of Statistics Malaysia (DOSM) said the steady labour market and strong consumer demand reflect ongoing economic stability heading into the final quarter of the year.

Unemployment At 3%, More Malaysians In Work

In its latest Labour Force Statistics report, DOSM said the number of unemployed persons fell slightly to 518,600 in September, down from 520,000 in August. The total labour force expanded to 17.54 million people, maintaining a participation rate of 70.9%.

Chief Statistician Malaysia, Dato’ Sri Dr Mohd Uzir Mahidin, said Malaysia’s encouraging economic performance has helped strengthen the labour force, with more Malaysians gaining employment across various sectors. The number of employed persons rose by 0.2% to 17.03 million in September, compared to 16.99 million in the previous month.

Most of the gains were recorded in the services sector, particularly in wholesale and retail trade, accommodation and food services, as well as information and communication. Manufacturing, construction, mining, and agriculture also reported slight increases in employment.

Youth unemployment improved marginally, with the rate among those aged 15 to 24 years easing to 10.1%. For those aged 15 to 30, the rate remained at 6.2%.

DOSM also noted that Putrajaya recorded the lowest unemployment rate at 1.4%, followed by Pahang and Selangor. The labour market, the department added, is performing at its best level in over a decade, supported by steady economic and regional development initiatives.

Retail And Wholesale Trade Record RM158 Billion In Sales

Separately, DOSM’s latest Performance of Wholesale & Retail Trade report showed that Malaysia’s total trade sales rose to RM158 billion in September, up 6.6% year-on-year. The growth was mainly driven by stronger sales in the wholesale and retail sub-sectors.

Wholesale trade accounted for RM71.1 billion, an increase of 6.9% from the same period last year. Retail trade recorded RM68.9 billion, up 7.0%, supported by household spending and seasonal shopping activity. The motor vehicles sub-sector also performed positively, contributing RM18 billion in sales, an increase of 4.3% year-on-year.

Mohd Uzir noted that higher retail activity in supermarkets, provision stores, and department stores was partly fuelled by the continued redemption of the Sumbangan Asas Rahmah (SARA) RM100 assistance, which helped boost consumer spending. Specialised retail stores, such as those selling clothing, jewellery, and pharmaceuticals, also saw steady gains.

Online retail continued to expand, growing 9.5% compared to a year earlier. The increase coincided with the 9.9 online sale event, which lifted e-commerce activity nationwide.

Digital payments also surged, with e-wallet transactions jumping 62.7% year-on-year to RM23.9 billion. Transactions through the Real-time Retail Payments Platform (RPP) reached RM307.8 billion, while FPX payments grew 27.2% to RM40.3 billion.

Outlook: Steady Growth Ahead

Looking ahead, DOSM expects Malaysia’s labour market and domestic trade sectors to maintain their positive momentum in the coming months. The upcoming Deepavali and year-end shopping seasons, together with ongoing government assistance programmes, are likely to support household consumption and employment.

With continued expansion in both employment and trade, Malaysia’s economy appears on track for stable growth as it enters the final stretch of 2025.

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