Unemployment Rate Falls To 2.9%, Lowest In 11 Years

Samuel Chua

12th January 2026 - 3 min read

Malaysia’s unemployment rate declined to 2.9% in November 2025, marking its lowest level since 2014, according to the latest Labour Force Statistics released by the Department of Statistics Malaysia. The improvement reflects steady job creation and stable labour market conditions as economic activity continues to recover.

For consumers and workers, lower unemployment generally supports income security and improves confidence when making financial decisions, such as taking on long-term commitments or investing in skills development.

Employment Levels Continue To Rise

The total number of employed persons increased to 17.09 million in November, up from 17.06 million in the previous month. This growth lifted the employment-to-population ratio to 68.8%, indicating that a larger share of Malaysians are now working.

At the same time, the labour force expanded by 0.2% to 17.61 million people. The labour force participation rate remained unchanged at 70.9%, suggesting sustained willingness among Malaysians to seek and stay in employment amid stable economic conditions.

Wage earners accounted for 74.8% of total employment in November, reflecting a continued shift towards formal jobs. Formal employment is typically associated with more predictable income, better social protection, and greater access to employee benefits.

Human Resources Minister Datuk Seri R. Ramanan said the higher share of wage employment points to improvements in job quality, alongside overall job growth. He added that a stable labour market supports broader economic resilience and household well-being.

From a personal finance perspective, stronger formal employment can also make it easier for workers to qualify for loans, insurance products, and long-term financial planning tools.

Broad-Based Hiring Across Key Sectors

Employment gains were recorded across multiple sectors, led by services such as healthcare and social work, wholesale and retail trade, and accommodation and food and beverage services. Other sectors, including agriculture, manufacturing, construction, and mining, also saw increases in employment.

This broad-based hiring suggests that job growth is not concentrated in a single industry, which helps reduce income risk for households and supports more balanced economic growth.

Underemployment And Youth Joblessness Remain

Despite the overall improvement, some challenges persist. The number of people working fewer than 30 hours per week increased to 237,000 in November. Time-related underemployment, referring to those willing and available to work additional hours, also edged higher, raising the underemployment rate to 0.8%.

Youth unemployment remained unchanged, with the jobless rate for those aged 15 to 24 standing at 10.1%. For Malaysians entering the workforce, this highlights the ongoing importance of training, skills development, and entry-level job opportunities.

Government Focus On Skills And Job Quality

Prime Minister Datuk Seri Anwar Ibrahim said the government remains focused on ensuring economic growth translates into better job opportunities, sustainable incomes, and long-term security for Malaysians. He attributed recent labour market improvements to economic reforms and development efforts under the Madani framework.

Ramanan said the Human Resources Ministry will continue to prioritise upskilling, reskilling, progressive wage policies, and labour market reforms. These initiatives are already in force and are aimed at aligning workforce skills with industry needs while improving worker protection.

What This Means For Everyday Malaysians

With unemployment at its lowest level in more than a decade, Malaysia’s labour market is showing signs of sustained stability. While underemployment and youth joblessness remain areas of concern, the overall trend supports better income prospects and greater confidence for households.

For individuals and families, a steadier job market can make it easier to plan savings, manage debt responsibly, and invest in education and skills that support long-term financial security.

0 0 votes

Article Rating