PUTRAJAYA, May 12 — Malaysia’s labour market remained stable in March 2026, with the unemployment rate unchanged at 2.9 per cent, supported by continued expansion in employment and labour force participation, according to the Department of Statistics Malaysia (DOSM).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the positive economic outlook during the month enabled the country’s labour market to sustain its steady growth momentum.
“The labour force increased by 0.1 per cent to 17.31 million persons in March 2026 from 17.30 million in February, while the labour force participation rate (LFPR) remained at 70.9 per cent,” he said in a statement today.
Mohd Uzir said the number of employed persons also edged up by 0.1 per cent to 16.80 million persons compared with 16.79 million recorded in the previous month.
The DOSM’s Statistics of the Labour Force, Malaysia, March and First Quarter 2026 also show that the number of unemployed persons rose slightly by 0.4 per cent to 509,000 persons from 506,800 in February, leaving the unemployment rate unchanged at 2.9 per cent.
The chief statistician said employees continued to make up the largest share of total employment at 75 per cent, increasing marginally to 12.60 million persons in March from 12.59 million previously.
“On the same note, the number of own-account workers recorded a 0.3 per cent rise to 3.14 million persons compared with 3.13 million in February,” he added.
Mohd Uzir said the services sector remained the main contributor to employment growth, particularly in accommodation and food and beverage services, information and communication activities, as well as transportation and storage activities.
“The manufacturing, construction and agriculture sectors also recorded increases in employment, while the mining and quarrying sector saw a slight decline,” he added.
On unemployment, Mohd Uzir said actively unemployed persons, defined as those available for work and actively seeking jobs, accounted for 79.7 per cent of total unemployed persons. This category increased by 0.3 per cent to 405,800 persons in March from 404,700 in February.
At the state level, Mohd Uzir said the Federal Territory of Putrajaya recorded the lowest unemployment rate at 1.3 per cent, followed by Pahang at 1.9 per cent, while Selangor and Melaka each posted two per cent.
He said Putrajaya also registered the highest LFPR at 79.2 per cent, followed by Selangor at 78 per cent and the Federal Territory of Kuala Lumpur at 76 per cent.
Looking ahead, Mohd Uzir said Malaysia’s labour market is expected to remain stable, supported by strong domestic fundamentals and ongoing structural transformation.
“However, growth is likely to be more moderate and increasingly shaped by external developments, particularly the trajectory of the global energy crisis and geopolitical conditions.
“As such, both businesses and the workforce will need to remain agile in navigating a more dynamic and uncertain economic environment,” he said. — Bernama
Date: 12 May, 2026 4:00 pm
Source: Malay Mail
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