KUALA LUMPUR – Malaysia’s unemployment rate has plunged to its lowest level in more than a decade, hitting 2.9 per cent in November 2025 – the sharpest improvement since November 2014.
According to the Department of Statistics Malaysia (DOSM), the figure translates to 518,400 unemployed persons, underscoring a labour market on solid footing.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the milestone reflects “continued strengthening of the labour market, supported by stable economic conditions and steady demand for labour across key sectors.”
“The labour force expanded by 0.2 per cent to reach 17.61 million persons in November compared to 17.58 million in October, while participation remained steady at 70.9 per cent,” he said.
Employment gains were broad-based, with the number of employed persons rising to 17.09 million, while unemployed persons dipped slightly from 518,900 in October. Employees made up nearly three-quarters of total employment at 12.78 million, while own-account workers edged up to 3.26 million.
The services sector led the charge – particularly in health and social work, wholesale and retail trade, accommodation, and food and beverage services – with growth also recorded in agriculture, manufacturing, construction, mining and quarrying.
Mohd Uzir noted that Malaysia’s labour market is expected to remain resilient in the months ahead, buoyed by emerging job opportunities, reskilling initiatives, and more balanced growth between urban and rural areas.
“Therefore, Malaysia’s labour market is forecast to remain competitive, inclusive and resilient in addressing global challenges, while leveraging opportunities from digital transformation and the green agenda,” he added.
Still, challenges remain. The number of people working less than 30 hours a week rose to 237,000, while time-related underemployment climbed to 129,900, nudging the underemployment rate up to 0.8 per cent from 0.7 per cent in October. – January 9, 2026