While the labour market remained broadly stable in May 2026, the main concern were on the youth unemployment which continued to remain elevated based on the latest Department of Statistics Malaysia report released this week.
DOSM said 79.5% of the country’s unemployed population comprised actively unemployed individuals—those who were available for work and actively seeking employment.
The number of active job seekers rose marginally by 0.2% to 408,000 persons in May from 407,100 recorded in April.
Among the actively unemployed, nearly two-thirds, or 63.9%, had been unemployed for less than three months, suggesting that most job seekers were relatively new entrants into unemployment. Meanwhile, 5.0% had been unemployed for more than a year, reflecting the persistence of long-term unemployment among a smaller segment of the labour force.
The number of inactively unemployed persons—those who were available to work but were not actively seeking employment because they believed no suitable jobs were available—increased by 0.7% to 105,500 persons, compared with 104,700 in April.
Youth unemployment remained a concern despite showing little month-on-month movement.
The unemployment rate for youths aged between 15 and 24 years remained unchanged at 10.2% in May, with 291,600 unemployed youths compared with 290,800 in the previous month.
Similarly, the unemployment rate among those aged between 15 and 30 years held steady at 6.3%, involving 396,000 unemployed persons, slightly higher than the 394,700 recorded in April.
Meanwhile, the number of persons outside the labour force (outside the labour market) increased marginally by 0.04% to 7.10 million persons in May.
Household and family responsibilities continued to be the primary reason for remaining outside the labour force, accounting for 43.3% of the total inactive population. Schooling and training remained the second-largest factor at 40.5%.
The latest figures indicate that while Malaysia’s labour market continues to demonstrate resilience, challenges remain in improving youth employment opportunities and encouraging greater labour force participation among those currently outside the workforce.
