PUTRAJAYA, June 30 — Malaysia’s labour market gained momentum in 2024, recording its strongest post-pandemic performance yet, with key indicators showing improvement and stability expected to persist into 2025, the Department of Statistics Malaysia (DOSM) said today.
According to DOSM’s Annual Statistics of the Labour Force, Malaysia 2024, the unemployment rate fell to 3.2 per cent, dipping below the pre-pandemic level of 3.3 per cent recorded in 2019.
The number of unemployed persons also dropped to 534,100, driven largely by a decline in unemployment among youths aged 15 to 24.
“Concurrently, the labour force increased by 3.3 per cent to 16.90 million persons compared to 16.37 million persons in the previous year. The labour force participation rate (LFPR) also rose to a new record high of 70.6 per cent from 70 per cent in 2023,” DOSM said in a statement here today
The number of employed persons also saw positive annual growth, rising by 3.5 per cent to 16.37 million from 15.81 million in 2023, it said
“Accordingly, the employment-to-population ratio, which indicates the ability of an economy to create employment, also increased by 0.7 percentage points to 68.4 per cent from 67.7 per cent in 2023,” it said.
DOSM said in terms of employment status, 78.5 per cent of employed persons were classified as employees’ category while the number of own-account workers category went up to 2.52 million persons, accounting for 15.4 per cent of total employment.
It said most employed persons remained in semi-skilled occupations, representing 56.5 per cent of total employment or approximately 9.26 million persons, followed by skilled occupations (4.94 million persons) and low-skilled occupations category (2.17 million persons).
From a sectoral perspective, employment remained dominant in the services sector which continued its upward trend and comprised 65.6 per cent of the total employment followed by the manufacturing sector at 16.3 per cent and agriculture sector at 9.0 per cent.
Additionally, the construction sector accounted for 8.5 per cent of total employment, while the mining and quarrying sector recorded the smallest share at 0.5 per cent.
The department said the underemployment situation improved in 2024, with the number of employed persons working less than 30 hours a week, due to job nature or insufficient work, falling by 6.1 per cent to 212,500 from 226,300 in 2023. Consequently, the underemployment rate declined to 1.3 per cent from 1.4 per cent in the previous year.
Youth unemployment fell to 10.3 per cent, with the number of unemployed youths down 4.1 per cent to 284,700 while unemployment among adults aged 25 to 64 also improved slightly, falling to 1.8 per cent.
At the state level, DOSM said Wilayah Persekutuan (WP) Putrajaya recorded the lowest unemployment rate at 1.1 per cent, followed by Melaka (1.6 per cent), Penang and Pahang, each recorded two per cent.
Meanwhile, the highest LFPR was also registered in WP Putrajaya at 78.7 per cent followed by Selangor (77.9 per cent), WP Kuala Lumpur (75.4 per cent) and Pulau Pinang (72 per cent).
DOSM said in terms of female participation, five states exceeded the national level of 56.5 per cent namely WP Putrajaya at 79.4 per cent), Selangor (70.3 per cent), WP Kuala Lumpur (66.6 per cent), Melaka (58.4 per cent) and Pulau Pinang (57.6 per cent).
It said despite the positive trends, 7.02 million persons remained outside the labour force mainly due to housework or family responsibilities with a share of 43.1 per cent, followed by those in the schooling or training category comprising 41.3 per cent.
Looking ahead, DOSM said the country’s labour market will remain resilient in 2025 supported by stable economic growth, Malaysia’s Asean Chairmanship and initiatives like the Asean Villages Network, which are expected to spur rural development and workforce upskilling. — Bernama
Malay Mail. (2025, June 30). Malaysia’s strongest labour market since Covid: More jobs, fewer jobless, 70.6 pc record participation rate. Malay Mail. Retrieved from https://www.malaymail.com/news/malaysia/2025/06/30/malaysias-strongest-labour-market-since-covid-more-jobs-fewer-jobless-706pc-record-participation-rate/182282
- Towards a skilled Asean workforce
KUALA LUMPUR: The establishment of an Asean Green and Digital Skills Taskforce can unite the region and keep it future-ready, says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. Ahmad Zahid, who is also the National Technical and Vocational Education and Training (TVET) Council chairman, said the proposed regional movement would allow for concrete […] - Flex marks the spot?
“DO I have to die in the office to go to heaven?” Hafiz, 27, who declines to give his full name, instantly sneers when asked about the new push to return fully to the office that his company is implementing. Hafiz works in digital marketing, first entering the job market amid the shift towards remote […] - Transformative HR – the way forward for businesses
PETALING JAYA: The role of human resources (HR) leaders and professionals has evolved significantly and now plays a critical role in helping businesses deliver desired outcomes to shareholders. FGV Holdings Bhd group chief human capital officer and Malaysia Institute of Human Resource Management (MIHRM) deputy president Razman Radzi said the role of HR professionals in the […] - HR MINISTRY TO EMPOWER REGION’S WORKFORCE
KUALA LUMPUR: In line with Malaysia’s role as the Asean chair for 2025, the Human Resources Ministry (KESUMA) and its agencies are spearheading a series of high-impact programmes. These initiatives are designed to empower human capital, promote the rights and welfare of workers, and develop a sustainable and inclusive employment ecosystem across the Asean region. […] - After more than 20 years, Sarawak labour law finally updated, aligning rights with peninsular Malaysia
KUCHING, May 2 — Employees in Sarawak finally have access to the benefits their counterparts in Peninsular Malaysia are enjoying as the amended Sarawak Labour Ordinance (SLO) came into effect yesterday. Malaysian Trades Union Congress (MTUC) Sarawak Division chairman Zaidi Nasar said Sarawakian workers had waited for such labour reforms for over 20 years. Among […] - From 30 days to three: AI to revolutionise industrial court records, says HR minister
GEORGE TOWN, March 14 — The Human Resources Ministry (Kesuma), through the Malaysian Industrial Court, will upgrade its digital recording system using artificial intelligence. Its minister, Steven Sim said the system could generate immediate transcripts during case proceedings to boost efficiency, reduce cost and coordinate understanding of communications of all stakeholders involved. “It aims to […] - STRENGTHENING WORKERS’ RIGHTS, ENHANCING PRODUCTIVITY
Kuala Lumpur: Malaysia is firmly on track to building a more progressive and equitable labour market. 2025 marks the implementation of two key initiatives – the new Minimum Wage Order (MWO) and the Progressive Wage Policy (PWP) – aimed at strengthening workers’ rights, boosting labour productivity and fostering a more inclusive and sustainable national economy. […] - Malaysia factory slump eases as July PMI hits five-month high
KUALA LUMPUR: The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI) rose to 49.7 in July, up from 49.3 in June. The latest reading indicates the slowest decline in manufacturing sector health in five months. “Malaysian manufacturers saw pressure on operating conditions soften at the start of the second half of 2025, as […] - Sim: Comply with ruling
Goodwill: Sim (left) and Fahmi believe the additional holiday reflects the spirit of Malaysia Day. Procedures must be followed as Sept 15 is declared public holiday PETALING JAYA: Employers must comply with the public holiday declared for Sept 15 by either giving employees the day off with regular pay or pay public holiday rates if […] - Employers must observe extra Malaysia Day holiday, says HR ministerPUTRAJAYA, July 23 — Employers must comply with the declaration of Sept 15 as an additional public holiday in conjunction with this year’s Malaysia Day celebration, said Human Resources Minister Steven Sim Chee Keong. He said employers could observe the additional public holiday and pay the regular salary, or instruct their employees to work and […]