Malaysia’s labour market remained resilient in June 2026, with the number of employed persons rising marginally despite a slight increase in unemployment, according to the Department of Statistics Malaysia (DOSM).
The number of employed persons increased by 2,300, or 0.01%, to 16.83 million in June from 16.82 million in May.
The employment-to-population ratio remained unchanged at 68.8%, indicating that employment conditions continued to hold steady during the month.
From a sectoral perspective, the Services sector remained the largest contributor to overall employment, particularly in transportation and storage, accommodation and food and beverage services, as well as wholesale and retail trade.
Employment in the Manufacturing and Construction sectors also increased during the month, while the Agriculture and Mining and quarrying sectors recorded declines.
Employees continued to account for the largest share of total employment, representing 75% of all employed persons in June.
The number of employees rose by 2,500, or 0.02%, to 12.61 million, while own-account workers increased by 1,200, or 0.04%, to 3.15 million.
However, the number of unemployed persons increased by 4,400, or 0.9%, to 517,800 in June from 513,400 in May.
Despite the increase in the number of unemployed persons, the national unemployment rate remained unchanged at 3.0%.
Meanwhile, Malaysia’s labour force continued to expand, increasing by 6,700, or 0.04%, to 17.34 million in June from 17.34 million in May.
The labour force participation rate (LFPR) remained steady at 70.9%, unchanged from the previous month.
The number of persons outside the labour force also edged higher by 6,400, or 0.1%, to 7.11 million from 7.10 million previously.
DOSM said housework or family responsibilities remained the main reason for being outside the labour force, accounting for 43.3% of the total. This was followed by schooling or training at 40.3%.
Overall, the June figures point to a labour market that remains broadly stable, with employment continuing to expand modestly while the unemployment rate held at 3.0%.
