On the whole, the domestic labour market remained resilient in May 2026, with employment continuing to edge higher while the unemployment rate held steady at 3.0%.
According to the Department of Statistics Malaysia (DOSM), the number of employed persons increased by 9,000, or 0.1%, to 16.82 million in May from the previous month.
The employment-to-population ratio, which measures the economy’s ability to generate jobs, remained unchanged at 68.8%, indicating continued stability in the labour market.
DOSM said the services sector continued to be the country’s largest source of employment, led by wholesale and retail trade, accommodation and food and beverage services, as well as information and communication activities.
Employment also recorded increases across other major sectors, including manufacturing, construction, agriculture, and mining and quarrying.
Employees remained the largest category in the labour force, accounting for 75.0% of total employment.
The number of employees rose marginally by 5,100 persons to 12.61 million in May, while the number of own-account workers increased by 3,200 to 3.15 million, reflecting continued participation in self-employment and small business activities.
Despite the continued rise in employment, the number of unemployed persons increased slightly by 1,600, or 0.3%, to 513,400 in May from 511,800 recorded in April.
However, the unemployment rate remained unchanged at 3.0%, suggesting that labour market conditions continued to remain broadly balanced.
Malaysia’s labour force expanded by 10,600 persons, or 0.1%, to 17.34 million during the month, while the labour force participation rate (LFPR) remained stable at 70.9%.
Meanwhile, the number of people outside the labour force increased marginally by 2,600 to 7.10 million.
Housework and family responsibilities remained the largest reason for being outside the labour force, accounting for 43.3% of the total, followed by those pursuing education or training, which represented 40.5%.
