The unemployment rate in Malaysia dipped to 2.9% in the first quarter of 2026, down 0.2% year-on-year, according to data from the Department of Statistics Malaysia.
At the same time, the number of unemployed people fell by 3.1% (16,000) to 506,500. Quarter-on-quarter, it was down 0.4%.
The number of employed people continued to expand by 1.0% year-on-year to 16.73 million, while the employment-to-population ratio increased to 68.8%.
Meanwhile, the labour force increased by 0.9% year-on-year to 17.23 million people and the participation rate edged up by 0.1% to 70.9%.
Total hours worked during the first quarter rose 0.5% year-on-year to 9.63 billion hours. It was up 0.2% quarter-on-quarter.
Malaysia’s economy expanded by 5.4% in the first quarter of 2026, up from 4.4% in the year-ago period. Labour productivity, as measured by value added per employed person, increased by 4.3% to MYR 26,171 (USD 6,579) per person. On an hourly basis, it stood at MYR 45.5.
“Although Malaysia’s current labour market situation remains stable and resilient, supported by domestic economic growth, the government needs to ensure a balance between price stability, maintaining consumer purchasing power and economic sustainability,” the Department of Statistics Malaysia stated in a press release.
“At the same time, continuous efforts should be intensified to enhance productivity, strengthen skills development and ensure more inclusive and sustainable labour market growth amid the current economic uncertainties,” it added.