Unemployment rate unchanged at 3pct in July - DOSM

Putrajaya: Malaysia's unemployment rate remained steady at 3.0 per cent in July 2026, matching the previous month's figure, according to the latest Labour Force Statistics released by the Statistics Department (DOSM). The labour force saw a slight increase of 0.1 per cent month-on-month, reaching 17.37 million persons in July, compared to 17.34 million in June.

The participation rate in the labour force stayed unchanged, sitting at 70.9 per cent. Employment numbers ticked up marginally, with the employed population growing by 0.1 per cent to 16.85 million in July, up from 16.83 million in June. Within these employed ranks, those working as employees comprised 74.9 per cent of total jobs, climbing 0.1 per cent to 12.62 million persons.

Meanwhile, self-employed individuals saw a 0.3 per cent increase, reaching 3.16 million. The services sector continued to dominate job creation, fueled by roles in arts, entertainment, accommodation, food services, and financial services like takaful. Employment gains were observed across all sectors, including agriculture, mining, manufacturing, and construction, as reported by the DOSM.

Among those unemployed, 79.3 per cent were deemed active, meaning they were available for work and actively seeking employment, with their count rising 0.4 per cent to 412,600. The department noted that 63.5 per cent of this active unemployed group had been jobless for less than three months, while 5.4 per cent had been unemployed for over a year.

In terms of age demographics, Malaysia's youth unemployment rate for individuals aged 15 to 24 remained at 10.2 per cent, with 292,500 jobless youths. The rate for those aged 15 to 30 climbed to 6.4 per cent, up from 6.3 per cent in June. The DOSM concluded that Malaysia's labour market demonstrated strength and resilience in July 2026, characterized by consistent employment growth and a low unemployment rate.

However, the statement highlighted the need for ongoing efforts to enhance human capital development to keep the national workforce competitive and equipped to meet future labor market demands.