Malaysia’s Q2 Unemployment Rate Edges Down to 3 Percent

2025-08-11 07:38:39

(MENAFN) Malaysia’s unemployment rate edged down by 0.1 percentage points to 3 percent in the second quarter of 2025, official figures revealed on Monday.

The Department of Statistics Malaysia reported a 0.8 percent rise in the labor force, reaching 17.37 million individuals during the quarter.

The labor force participation rate also saw a slight increase, climbing 0.1 percentage points to 70.8 percent from 70.7 percent in the previous quarter.

This upward trend was mirrored in employment numbers, with employed persons growing by 0.9 percent to total 16.85 million.

Conversely, the number of unemployed declined by 1 percent, dropping to 520,900 people.

"Malaysia's labor market is observed to be in a stable outlook in the coming months due to rising domestic demand, higher labor productivity, increased employment opportunities, and broad-based investments, particularly in technology and strategic sectors," the statement said.

It further noted, "Although there are challenges such as talent migration, global trade tensions, and inflation, government policies focusing on digitalization, technical training, and investment incentives are expected to sustain medium- to long-term growth in the labor market."

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