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According to DOSM, this drop reflects steady hiring activity and stable labour force participation in the period.
Malaysia’s unemployment rate fell to 2.9% in November 2025, marking its lowest level since November 2014, according to the Department of Statistics Malaysia (DOSM). This translated to 518,400 unemployed persons, based on DOSM's latest Labour Force Statistics, Malaysia, November 2025 release.
In a statement issued on 9 January 2026 (Friday), DOSM said the last time the unemployment rate dropped below the 3% threshold was 132 months ago, highlighting the strength of recent labour market conditions. The findings were drawn from the Labour Force Survey conducted nationwide.
Commenting on the overall performance, Dato’ Sri Dr. Mohd Uzir Mahidin, Chief Statistician Malaysia said favourable economic conditions in November continued to support labour market growth. As a result, the labour force expanded by 0.2% month on month to 17.61mn persons, compared with 17.58mn in October 2025. The labour force participation rate remained unchanged at 70.9%.
Employment levels also edged higher during the month. The total number of employed persons increased by 0.2% to 17.09mn, an increase from 17.06mn in October. At the same time, the number of unemployed persons recorded a slight decline of 0.1%, easing from 518,900 to 518,400 persons. This movement brought the unemployment rate down by 0.1 percentage points, from 3.0% to 2.9%, the lowest level in eleven years.
Breaking down employment by category, DOSM noted that employees made up 74.8% of total employment in November. This group rose slightly by 0.1% to 12.78mn persons. The number of own-account workers also increased, growing by 0.3% to 3.26mn persons, compared with 3.25mn in the previous month.
By sector, employment in the services sector continued its upward trend, supported mainly by human health and social work activities, wholesale & retail trade, accommodation as well as food & beverage services. Employment growth was also observed across agriculture, manufacturing, construction, as well as mining & quarrying activities.
At the same time, DOSM highlighted a rise in shorter working hours. The number of persons working less than 30 hours per week increased by 1.6% to 237,000 persons in November, an increase from 233,200 in October. Correspondingly, time-related underemployment, referring to individuals working fewer than 30 hours but willing and available to work more, rose by 2.7% to 129,900 persons. This pushed the time-related underemployment rate up slightly to 0.8%, from 0.7% in the previous month.
Looking closer at unemployment trends, DOSM reported that 79.8% of unemployed persons were actively seeking work in November. This group declined slightly by 0.1% to 413,500 persons. Among those actively unemployed, 64.4% had been without work for less than three months, while 5.0% were classified as long-term unemployed, having been jobless for more than a year. Meanwhile, the number of inactively unemployed persons, or those who believed that no jobs were available, decreased slightly to 104,900 persons.
Youth unemployment remained largely stable. The unemployment rate for youths aged 15 to 24 years stood at 10.1%, involving 297,900 persons, while the rate for those aged 15 to 30 years remained at 6.1%, with 398,000 unemployed youths, slightly lower than in October.
Outside the labour force, the total number of persons recorded a marginal increase to 7.22mn. Housework and family responsibilities continued to form the largest share at 43.7%, followed by schooling and training at 40.8%.
Looking ahead, DOSM said Malaysia’s labour market is expected to remain stable in the coming months, supported by new job creation in strategic industries. Ongoing reskilling and upskilling initiatives, alongside more balanced regional development, are also expected to broaden employment opportunities, including in rural areas.
Collectively, these factors seek to position Malaysia’s labour market to remain competitive, inclusive, and resilient, even as it navigates global economic challenges and shifts linked to digitalisation and the green agenda.
Lead image / DOSM Facebook
Infographic / DOSM Facebook
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