KUALA LUMPUR — Malaysia’s labour market held steady in March 2026, with the unemployment rate unchanged at 2.9 per cent, underpinned by continued growth in employment and labour force participation, the Department of Statistics Malaysia (DOSM) reported.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said a positive economic outlook during the month helped sustain the momentum of the country’s labour market, Bernama reported.
“The labour force increased by 0.1 per cent to 17.31 million persons in March 2026 from 17.30 million in February, while the labour force participation rate (LFPR) remained at 70.9 per cent,” he said in a statement today.
The number of employed persons also rose slightly by 0.1 per cent to 16.80 million from 16.79 million in the previous month. DOSM’s Statistics of the Labour Force, Malaysia, March and First Quarter 2026 showed the number of unemployed persons edged up by 0.4 per cent to 509,000 from 506,800 in February, leaving the unemployment rate unchanged.
Employees continued to make up the largest share of total employment, representing 75 per cent, increasing marginally to 12.60 million persons in March from 12.59 million previously. “On the same note, the number of own-account workers recorded a 0.3 per cent rise to 3.14 million persons compared with 3.13 million in February,” Mohd Uzir added.
The services sector remained the main driver of employment growth, particularly in accommodation and food and beverage services, information and communication activities, and transportation and storage. The manufacturing, construction, and agriculture sectors also saw increases, while the mining and quarrying sector experienced a slight decline.
Regarding unemployment, Mohd Uzir said actively unemployed persons—those available for work and actively seeking jobs—accounted for 79.7 per cent of the total, rising 0.3 per cent to 405,800 in March from 404,700 in February.
At the state level, the Federal Territory of Putrajaya recorded the lowest unemployment rate at 1.3 per cent, followed by Pahang at 1.9 per cent. Selangor and Melaka each posted two per cent. Putrajaya also led in LFPR at 79.2 per cent, followed by Selangor at 78 per cent and the Federal Territory of Kuala Lumpur at 76 per cent.
Looking ahead, Mohd Uzir said Malaysia’s labour market is expected to remain stable, supported by strong domestic fundamentals and ongoing structural transformation.
“However, growth is likely to be more moderate and increasingly shaped by external developments, particularly the trajectory of the global energy crisis and geopolitical conditions. As such, both businesses and the workforce will need to remain agile in navigating a more dynamic and uncertain economic environment,” he said. — May 12, 2026