Malaysia’s labour market remained resilient in July 2026, with the number of employed persons rising to 16.85 million while the unemployment rate held steady at 3.0%, according to the Department of Statistics Malaysia (DOSM).
The labour force expanded by 0.1% month-on-month, or 21,000 persons, to 17.37 million, from 17.34 million in June. The labour force participation rate remained unchanged at 70.9%.
Employment increased by 0.1%, or 18,500 persons, from 16.83 million in June, while the employment-to-population ratio — an indicator of the economy’s ability to generate employment — remained at 68.8%.
The services sector continued to be the main contributor to employment growth, particularly in arts, entertainment and recreation, accommodation and food and beverage services, as well as financial and insurance/takaful activities.
Employment also increased across agriculture, mining and quarrying, manufacturing and construction.
Employees continued to make up the largest proportion of employed persons, accounting for 74.9% of total employment.
The number of employees rose by 7,600, or 0.1%, to 12.62 million, from 12.61 million in June.
Meanwhile, the number of own-account workers increased by 8,700, or 0.3%, to 3.16 million, compared with 3.15 million previously.
The number of unemployed persons increased marginally by 2,500, or 0.5%, to 520,300 in July from 517,800 in the preceding month.
Despite the increase, the unemployment rate remained unchanged at 3.0%.
The figures indicate that Malaysia continued to generate jobs alongside growth in its labour force, keeping the unemployment rate at relatively low levels.
The number of people outside the labour force was broadly unchanged at 7.11 million, rising by just 700 persons or 0.01% from June.
Housework and family responsibilities accounted for the largest proportion of those outside the labour force at 43.3%, followed by schooling and training at 40.2%.
Overall, the latest data showed Malaysia’s labour market continued to expand gradually in July, supported by broad-based employment growth across major economic sectors.
