The labour market continued to expand in April 2026, with employment reaching a new high, although the unemployment rate edged up to 3.0% as more people entered the workforce, according to the latest labour force statistics released by the Department of Statistics Malaysia.
The number of employed persons increased by 0.1%, or 11,800 people, to 16.82 million in April from 16.80 million in March.
Despite the increase in employment, the employment-to-population ratio remained unchanged at 68.8%, indicating a stable pace of job creation relative to the size of the working-age population.
The services sector remained the largest contributor to employment growth, particularly in wholesale and retail trade, accommodation and food and beverage services, as well as information and communication activities.
Employment also recorded positive growth across other major sectors, including manufacturing, construction, agriculture, and mining and quarrying.
Employees continued to make up the largest share of the workforce, accounting for 75.0% of total employment.
The number of employees rose slightly by 6,300 persons to 12.61 million in April, while the number of own-account workers increased by 6,200 persons to 3.15 million, extending the upward trend in self-employment.
Meanwhile, the labour force expanded by 14,600 persons, or 0.1%, to 17.33 million compared with 17.31 million in March.
The labour force participation rate (LFPR) remained unchanged at 70.9%, suggesting continued stability in workforce participation.
However, the number of unemployed persons increased by 0.6%, or 2,900 individuals, to 511,800 in April from 509,000 in the previous month.
As a result, the unemployment rate rose to 3.0%, up from 2.9% in March and returning to the level last recorded in October 2025.
The increase indicates that while more jobs are being created, labour force growth slightly outpaced employment gains during the month.
Outside the labour force, the number of individuals not actively seeking employment declined marginally by 400 persons to 7.10 million.
Housework and family responsibilities remained the main reason for staying outside the labour force, accounting for 43.3% of the total, followed by schooling and training at 40.5%.
Overall, the latest figures point to a labour market that remains resilient, supported by continued employment growth across key sectors. However, the slight uptick in unemployment suggests that job creation will need to accelerate further to absorb the growing number of individuals entering the workforce.
