Malaysia’s labour market continued to demonstrate steady improvement in May 2025, as the number of unemployed persons dropped further to 522.4 thousand, maintaining an unemployment rate of 3.0% according to the Department of Statistics Malaysia (DOSM).
The latest figures were released in DOSM’s Statistics of the Labour Force, Malaysia, May 2025, which provides insights into the labour supply situation based on the Labour Force Survey.
Labour Market Shows Resilience Amid Global Changes
Chief Statistician Malaysia, Dato’ Sri Dr. Mohd Uzir Mahidin, described the latest data as evidence of the country’s economic resilience and its ability to adapt to global economic and technological shifts.
“The country’s labour market in May 2025 portrayed resilience and strong adaptability to global economic and technological changes.
The continued decrease in unemployment, alongside a rise in employment, reflects Malaysia’s positive and encouraging economic performance,” he added.
The labour force continued its upward trend, increasing by 0.2% from April 2025 to reach 17.38 million persons (April: 17.34 million). Meanwhile, the labour force participation rate remained unchanged at 70.8%.
Employment Growth Across Sectors
Employment also showed consistent growth. The total number of employed persons rose by 0.3%, reaching 16.86 million in May 2025, compared to 16.82 million in April.
Among the employed, the majority (75.1%) were classified as employees, a group that grew by 0.2% to 12.66 million persons. Additionally, the number of own-account workers those who are self-employed without paid employees increased by 0.5% reaching 3.18 million persons (April: 3.16 million).
By economic sector, employment gains were noted across the board. The Services sector continued its upward trend, especially in Accommodation and Food & Beverage services, Wholesale and Retail Trade, and Transportation & Storage. Positive developments were also seen in the Manufacturing, Construction, Agriculture, and Mining & Quarrying sectors, all of which recorded rising employment.
Fewer Actively and Inactively Unemployed Persons
The number of unemployed persons in May declined by 0.7% from the previous month, dropping to 522.4 thousand from 525.9 thousand in April. While the unemployment rate remained at 3.0%, as in April, the composition of the unemployed showed encouraging changes.
Among the unemployed, 79.7% were classified as actively unemployed, those who are available for and actively seeking work. This group fell by 0.5% to 416.4 thousand persons, down from 418.6 thousand in April.
Within this group, the majority (64.4%) had been unemployed for less than three months, while 5.1% had been out of work for more than a year, indicating long-term unemployment.
The number of inactively unemployed, those who were not actively seeking work because they believed there were no jobs available also decreased by 1.2%, falling to 106.0 thousand persons from 107.2 thousand in April.
Youth unemployment rates also showed marginal improvement in May. For youths aged 15 to 24 years, the unemployment rate declined slightly to 10.2%, with 297.7 thousand persons unemployed, compared to 10.3% and 298.3 thousand persons in April.
For the broader youth group aged 15 to 30 years, the unemployment rate stood at 6.2% with 399.0 thousand unemployed persons, compared to 400.6 thousand in the previous month.
Slight Increase in People Outside the Labour Force
While the labour market saw more people employed, the number of individuals outside the labour force those not working or seeking work increased slightly by 0.1% to 7.18 million persons, up from 7.17 million in April.
The largest portion of this group cited housework and family responsibilities as their main reason for not participating in the labour force (43.7%), followed by those involved in schooling or training (41.0%).
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
