Jobless numbers rise despite unemployment rate holding at 3% - DOSM

Malaysia's unemployment rate remained unchanged at 3.0 percent in June, according to the Department of Statistics Malaysia (DOSM). However, the number of unemployed individuals increased by 0.9 percent month-on-month to 517,800, indicating a slight rise in labor market slack even as employment continued to grow. The number of employed people slightly increased by 0.01 percent to 16.83 million in June, compared to 16.82 million in May.

The labor force, comprising both employed and unemployed individuals, stood at 17.34 million, with a labor force participation rate of 70.9 percent, remaining steady. Among the unemployed, 79.4 percent were actively seeking work, with the number of actively unemployed people rising to 410,900. Of those actively unemployed, 63.6 percent had been jobless for less than three months, while 5.3 percent had been out of work for over a year.

The youth unemployment rate among those aged 15 to 24 remained high at 10.2 percent, affecting 292,200 individuals. The unemployment rate for those aged 15 to 30 was 6.3 percent. The unemployment rate increased from 2.9 percent in the first quarter of 2026 to 3.0 percent in the second quarter, while the number of unemployed people grew by 0.6 percent to 509,700.

Employment expanded by 0.2 percent to 16.77 million during the quarter, and the labor force increased by 0.3 percent to 17.28 million. Looking ahead, the DOSM expects a positive outlook for the economic and labor market, supported by stable domestic economic conditions, ongoing investment activity, and a resilient labor market. However, uncertainties in global energy markets, geopolitical events, and external trade conditions could potentially put pressure on business costs and hiring decisions if these risks persist.