Malaysia Maintains Jobless Rate at 2.9% in March

Post by : Shakul

In March 2026, Malaysia’s job market exhibited resilience, retaining an unemployment rate of 2.9 per cent, as reported by the Department of Statistics Malaysia (DOSM). The latest report highlights consistent growth in employment paired with increased workforce engagement, aiding the nation’s economic sustainability amidst global challenges.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin pointed out that favorable economic conditions during the month fueled the ongoing growth in the labour market. The workforce expanded slightly to 17.31 million, an increase from 17.30 million in February, while the participation rate remained steady at 70.9 per cent, showcasing enduring engagement by the workforce.

There was also a minor uptick in the number of employed individuals, with total employment climbing to 16.80 million from 16.79 million the previous month. Employees made up the majority of the workforce, representing around 75 per cent, with their numbers rising marginally to 12.60 million.

The statistics reflected a slight increase in unemployment as well, with total jobless numbers rising by 0.4 per cent to 509,000 in March from 506,800 in February. Nevertheless, the 2.9 per cent jobless rate remained unchanged due to the balanced expansion of the labour market. Notably, around 80 per cent of the unemployed were actively seeking jobs, indicating robust participation in job searches.

The services sector continued to be a significant driver of employment growth, with sectors such as accommodation, food services, information and communication, and transportation increasing hiring rates in March. Other areas like manufacturing, construction, and agriculture also saw positive employment trends, while job numbers in the mining and quarrying sector saw a slight dip.

Regionally, Putrajaya led with the lowest unemployment rate at 1.3 per cent, followed by Pahang at 1.9 per cent, and both Selangor and Melaka registered rates of 2 per cent. Putrajaya also had the highest labour force participation rate at 79.2 per cent, with Selangor trailing at 78 per cent and Kuala Lumpur at 76 per cent, indicating robust activity in urban centers.

Looking forward, DOSM forecasts that Malaysia’s labour market will likely maintain its stability due to solid domestic economic underpinnings and ongoing structural reforms. However, they cautioned that potential external threats, such as geopolitical issues and the global energy landscape, could pose challenges to future growth. Economists emphasize the importance of sustaining employment and workforce engagement to support Malaysia’s long-term recovery and developmental strategies.

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