Malaysia’s labour market maintained its positive momentum in June 2025, with the number of employed persons rising by 0.3% month-on-month (+52,900) to 16.92 million, according to the Department of Statistics Malaysia (DOSM).
The employment-to-population ratio — an indicator of the economy’s ability to generate jobs — remained unchanged at 68.7%.
Growth was broad-based across all major sectors, led by the Services sector, particularly wholesale and retail trade, accommodation and food & beverage services, as well as information and communication activities. The Manufacturing, Construction, Mining & Quarrying, and Agriculture sectors also recorded steady gains.
Employees remained the largest segment of the workforce, accounting for 75% of total employment. This category grew by 0.2% (+29,400) to 12.69 million persons, while the number of own-account workers — such as small business operators and freelancers — rose 0.6% (+19,400) to 3.20 million.
Unemployment continued to edge down, declining 0.7% (-3,700) to 518,700 persons, keeping the national unemployment rate steady at 3.0% for the third consecutive month.
The labour force grew 0.3% (+49,200) to 17.43 million, maintaining a labour force participation rate (LFPR) of 70.8%.
Meanwhile, the number of people outside the labour force — those not seeking work — dipped slightly to 7.18 million. Housework and family responsibilities remained the top reason for non-participation (43.7%), followed by schooling or training (40.9%).
Economists say the sustained job growth underscores Malaysia’s economic resilience despite global headwinds, with the Services sector acting as the main driver of labour demand.
