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The number of employed persons increased by 0.1% from April, while the labour force grew to 17.34mn and the unemployment rate remained at 3%.
Malaysia's unemployment rate remained unchanged at 3% in May 2026, with 513,400 people unemployed, according to the latest Labour Force Statistics, May 2026 released by the Department of Statistics Malaysia (DOSM).
The report, which provides insights into Malaysia's labour supply based on the Labour Force Survey, found that the country's labour market continued to improve moderately in line with stable economic growth. According to DOSM, steady employment growth and a persistently low unemployment rate were recorded despite ongoing global supply challenges.
As a result, Malaysia's labour force continued its upward momentum, increasing by 0.1% month-on-month to 17.34mn people in May 2026, an increase from 17.33mn in April. The labour force participation rate remained unchanged at 70.9%.
Similarly, the number of employed persons increased by 0.1% to 16.82mn in May 2026.
Meanwhile, the number of unemployed persons increased slightly by 0.3% to 513,400, compared with 511,800 in April. Despite the marginal increase in the number of unemployed persons, the unemployment rate remained at 3.0%, reflecting continued stability in the labour market.
According to DOSM, employees continued to make up the largest share of the workforce, accounting for 75.0% of all employed persons. This group rose slightly by 0.04% to 12.61mn in May 2026.
Likewise, the number of own-account workers increased by 0.1% to 3.15mn.
From a sectoral perspective, the services sector remained the largest contributor to total employment, with wholesale and retail trade, accommodation and food & beverage service activities, as well as information and communication activities recorded the largest shares of employment during the month.
Employment also increased across other major sectors, including manufacturing, construction, agriculture, as well as mining and quarrying.
Majority of unemployed persons were actively seeking work
Providing further insights into the unemployment situation, DOSM said 79.5% of unemployed persons were classified as actively unemployed, referring to individuals who were available for work and actively looking for jobs.
This group increased by 0.2% to 408,000 people in May, compared with 407,100 in April.
Among the actively unemployed, 63.9% had been unemployed for less than three months, while 5% experienced long-term unemployment, having been out of work for more than one year.
Meanwhile, the number of inactively unemployed people, or those who believed no jobs were available, rose by 0.7% to 105,500, up from 104,700 in the previous month.
Youth unemployment remains unchanged
Youth unemployment remained stable in May 2026.
The unemployment rate among those aged 15 to 24 held at 10.2%, with 291,600 unemployed youths recorded during the month.
Similarly, the unemployment rate for those aged 15 to 30 remained at 6.3%, representing 396,000 unemployed youths, compared with 394,700 in April.
Number of people outside the labour force edges up
Meanwhile, the number of people outside the labour force increased marginally by 0.04% to 7.10mn in May 2026.
According to DOSM, housework and family responsibilities remained the main reason for being outside the labour force, accounting for 43.3% of the total. This was followed by schooling or training, which made up 40.5%.
Looking ahead, DOSM expects Malaysia's labour market to remain resilient in the coming months, supported by favourable domestic economic conditions, sustained investment activity and ongoing structural transformation. While external uncertainties may affect hiring activity in some industries, the department said overall labour market stability is expected to be maintained.
It added that continued efforts to enhance labour productivity, strengthen workforce adaptability and better align labour supply with industry demand will be key to sustaining quality employment and supporting long-term economic growth.
Lead image / DOSM
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