The Government through the Ministry of Human Resources said it is intensifying intervention measures to support affected workers following a staggering increase in job losses recorded across several economic sectors during the first five months of 2026.
Human Resources Minister Ramanan Ramakrishnan said the ministry is closely monitoring developments and implementing measures to help workers who have lost their jobs secure new employment, enhance their skills and strengthen the resilience of Malaysia’s labour market amid global geopolitical uncertainties.
Based on data from the Employment Insurance System, a total of 38,953 individuals were recorded as experiencing loss of employment between January and May 2026.
The majority of affected workers were aged between 25 and 39 years old. By gender, men accounted for 23,536 cases or 60.4%, while women recorded 15,417 cases or 39.6%.
The Ministry said job losses were concentrated mainly in key economic sectors including manufacturing, wholesale and retail trade, motor vehicle repair activities, as well as administrative and support services. Attributing these trend to organisational restructuring and operational adjustments undertaken by companies to adapt to the current economic environment.
Despite the increase in job displacement, Malaysia’s labour market fundamentals remain resilient, with the unemployment rate staying low at 3.0% in April 2026. The country’s labour force reached 17.33 million people during the month, while the labour force participation rate (LFPR) stood at 70.9%, comprising 82.9% for men and 57.3% for women.
The ministry said early intervention remains critical to ensure workers can transition into sectors with stronger demand, particularly as many of those affected are younger and skilled workers.
“Given that a significant proportion of affected individuals are young and qualified, emphasis is being placed on aligning workforce capabilities with future industry needs through reskilling and upskilling programmes,” the Minister Ramanan Ramakrishnan added .
The first involves career transition support and worker profiling through platforms such as MYFutureJobs, which connects LOE workers with suitable employment opportunities.
The ministry added that Labour Market Exchange (LMX) and MYFutureJobs Galaxy provide workers with labour market insights to help them make informed career decisions and plan flexible career pathways.
The second focus is on reskilling and upskilling programmes provided by the Social Security Organisation (PERKESO), aimed at helping workers acquire new capabilities or enhance existing skills based on evolving industry requirements.
The third area involves early intervention for critical sectors, where PERKESO identifies industries facing potential disruption and implements measures to assist workers in adapting quickly to changing market conditions.
“The priority is to strengthen the competitiveness of Malaysia’s workforce and ensure every affected worker receives the necessary support,” the ministry said.
