PUTRAJAYA, July 10 — The national unemployment rate remained unchanged at 3.0 per cent in May, with the number of unemployed persons standing at 513,400, said the Malaysian Statistics Department (DOSM).
The country’s labour market showed moderate improvement, supported by stable economic growth, with consistent employment growth and a low unemployment rate, despite challenges from global supply chain disruptions.
“The labour force continued its upward momentum during the month, increasing 0.1 per cent month-on-month to 17.34 million people from 17.33 million people in the previous month.
“As such, the labour force participation rate remained at 70.9 per cent, unchanged from the previous month,” it said in a statement today.
DOSM added that the number of employed persons continued to increase in May 2026, rising marginally by 0.1 per cent to 16.82 million, while unemployed persons rose by 0.3 per cent to 513,400, up from 511,800 in April 2026.
From an economic sector perspective, the services sector remained the largest contributor to total employment during the month, driven by wholesale and retail trade, accommodation and food and beverage services, and information and communication.
Other major sectors, namely manufacturing, construction, agriculture, and mining and quarrying, also recorded increases in employment in May 2026.
It said that 79.5 per cent of the total unemployed comprised active unemployed persons, referring to those who were available for work and actively looking for employment, with this group increasing by 0.2 per cent to 408,000 people compared with 407,100 people in April 2026.
Malaysia’s labour market is expected to remain resilient in the coming months, supported by favourable domestic economic conditions, continued investment activities, and progress in the country’s economic structural transformation.
“While external uncertainties have the potential to affect hiring activities in certain industries, the overall labour market is expected to remain stable.
“Continued efforts to enhance labour productivity, strengthen workforce adaptability, and improve the alignment between labour supply and industry demand will remain important in sustaining quality employment opportunities and supporting long-term economic growth,” DOSM said.
