The labour market remained resilient in the second quarter of 2026, with total jobs rising 1.6% year-on-year (y-o-y) to 9.25 million, compared with 9.10 million in Q2 2025, according to the Department of Statistics Malaysia (DOSM).
The increase was mainly supported by growth in filled jobs, which rose 1.7% to 9.05 million from 8.90 million a year earlier. The filled jobs rate remained high at 97.9%, indicating that most positions available in the labour market continued to be occupied.
Meanwhile, job vacancies increased marginally by 0.4% to 195,700, from 194,900 in Q2 2025, translating into a vacancy rate of 2.1%. However, the number of jobs created declined 1.2% y-o-y to 31,500, suggesting that while employment remained stable, the pace of new job creation was relatively subdued.
Semi-skilled workers continue to dominate
The semi-skilled category remained the largest segment of Malaysia’s labour market, accounting for 5.74 million jobs, or 62% of total employment-related positions. This was up 1.1% from 5.68 million jobs in Q2 2025.
Filled semi-skilled jobs increased to 5.63 million, while vacancies stood at 107,300. Notably, jobs created in this category increased 1% to 20,800, indicating continued demand for semi-skilled workers.
The skilled category recorded stronger growth, with total jobs increasing 2.5% y-o-y to 2.35 million, from 2.29 million previously. Filled jobs rose to 2.30 million, while vacancies amounted to 50,200. However, jobs created declined 1.2% to 7,900.
The low-skilled category recorded the fastest growth in total jobs, rising 2.8% to 1.17 million. However, jobs created in this segment fell sharply by 17% to 2,800, highlighting weaker demand for new low-skilled positions.
Services remains Malaysia’s largest employer
The Services sector continued to dominate employment, accounting for 4.86 million jobs or 52.5% of total jobs in Q2 2026.
Manufacturing followed with 2.53 million jobs (27.4%), while Construction accounted for 1.28 million (13.8%). Agriculture contributed 503,100 jobs, or 5.4%, while Mining and Quarrying remained the smallest contributor at 79,700 jobs.
Services also accounted for the largest share of filled jobs at 4.83 million, followed by Manufacturing at 2.42 million and Construction at 1.25 million.
However, Manufacturing remained the largest source of vacancies, accounting for 114,000 vacancies or 58.3% of the national total. This points to continued hiring requirements in the manufacturing sector despite the broader moderation in new job creation.
Agriculture recorded 30,400 vacancies, followed by Construction with 26,500 and Services with 24,300.
What the Q2 figures show
Overall, the Q2 2026 data points to a stable and expanding Malaysian labour market, although the pace of employment creation appears to be moderating.
The 1.7% growth in filled jobs indicates that businesses continued to absorb workers compared with a year earlier, while the near-flat increase in vacancies suggests that labour demand remains firm but is not accelerating significantly.
The strongest employment growth was seen in skilled and low-skilled positions, while semi-skilled workers continued to make up the bulk of Malaysia’s workforce. At the same time, the decline in jobs created, particularly among low-skilled workers, suggests that employers may be becoming more selective in expanding their workforce.
From a sectoral perspective, Services remains the backbone of employment, while Manufacturing’s disproportionately large share of vacancies indicates that the sector continues to face significant demand for workers.
In short, compared with Q2 2025, Malaysia entered the second half of 2026 with a healthy employment base, high job-filling rates and slightly more vacancies, but with signs that the creation of new jobs is losing some momentum.
