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The labour force rose slightly to 17.31mn people and employment increased to 16.80mn during this period.
Malaysia’s labour market remained stable in March 2026, with the unemployment rate unchanged at 2.9% from February 2026, according to the Department of Statistics Malaysia (DOSM).
The labour force increased by 0.1% to 17.31mn persons, while the labour force participation rate remained at 70.9%. Employment also rose by 0.1% to 16.80mn persons. The number of unemployed persons increased slightly by 0.4% to 509,000 persons.
For the first quarter of 2026, the labour force grew by 0.3% to 17.23mn persons, while employment increased by 0.3% to 16.73mn persons. The number of unemployed persons declined by 0.4% to 506,500 persons, bringing the unemployment rate down to 2.9% from 3% in the fourth quarter of 2025.
Employment
The number of employed persons increased by 0.1% to 16.80mn in March 2026, compared with 16.79mn in February.
Employees made up 75.0% of total employment. This category rose by 0.04% to 12.60mn persons, from 12.59mn in the previous month.
Own-account workers also increased, rising by 0.3% to 3.14mn persons from 3.13mn in February.
By sector, services remained the largest contributor to employment, particularly in accommodation and food and beverage services, information and communication activities, and transportation and storage activities.
Employment also increased in manufacturing, construction and agriculture, while mining and quarrying recorded a slight decline.
In Q1 2026, employment rose by 0.3% to 16.73mn persons, compared with 16.68mn in the Q4 2025.
The number of persons working less than 30 hours per week increased by 2.5% to 231,600 persons. However, time-related underemployment, covering those working less than 30 hours per week but willing and able to work additional hours, fell by 3.6% to 123,300 persons. The time-related underemployment rate stood at 0.7%.
Skill-related underemployment, which refers to individuals with tertiary education working in semi-skilled and low-skilled occupations, increased by 0.2% to 1.93mn persons. The skill-related underemployment rate declined to 35.2%, from 35.3% in the previous quarter.
Unemployed
The number of unemployed persons increased slightly by 0.4% to 509,000 in March 2026, from 506,800 in February.
Despite the increase, the unemployment rate remained unchanged at 2.9%.
Actively unemployed persons, referring to those available for work and actively seeking jobs, accounted for 79.7% of total unemployment. This group increased by 0.3% to 405,800 persons, from 404,700 in February.
Among the actively unemployed, 64.1% had been unemployed for less than three months, while 4.9% had been unemployed for more than a year.
The inactively unemployed, referring to those who believed no jobs were available, rose by 1.1% to 103,200 from 102,100 in February.
Youth unemployment remained unchanged in March. The unemployment rate for youths aged 15 to 24 stood at 10.2%, involving 290,000 unemployed youths. For youths aged 15 to 30, the unemployment rate was 6.2%, with 390,900 unemployed persons.
In the first quarter of 2026, the number of unemployed persons declined by 0.4% to 506,500. The unemployment rate fell by 0.1 percentage points to 2.9%, from 3.0% in the fourth quarter of 2025.
At state level, W.P. Putrajaya recorded the lowest unemployment rate in the first quarter at 1.3%, followed by:
- Pahang at 1.9%.
- Selangor and Melaka each recorded 2.0%.
Labour force
Malaysia’s labour force increased by 0.1% to 17.31mn persons in March 2026, from 17.30mn in February.
The labour force participation rate remained unchanged at 70.9%.
For Q1 2026, the labour force grew by 0.3% to 17.23mn persons. The LFPR remained at 70.9%, unchanged from the previous quarter.
The male LFPR decreased to 83.3%, while the female LFPR rose to 56.8%.
Five states recorded LFPRs above the national rate in the first quarter of 2026. W.P. Putrajaya recorded the highest LFPR at 79.2%, followed by Selangor at 78.0% and W.P. Kuala Lumpur at 76.0%.
Outside labour force
The number of persons outside the labour force declined marginally by 0.02% to 7.10mn persons in March 2026.
Housework and family responsibilities accounted for the largest share of those outside the labour force, at 43.3%. Schooling and training was the second-largest category, at 40.6%.
Commenting on the overall performance for March 2026, Chief Statistician Malaysia, Dr. Mohd Uzir Mahidin said that the positive economic outlook in March 2026 enabled the country's labour market to sustain its steady growth.
He added that Malaysia’s labour market outlook for the months ahead is anticipated to remain stable, supported by strong domestic fundamentals and continued 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 added.
READ MORE: Employment support guidelines for neurodivergent workers launched in Malaysia
Lead image & infographics / DOSM
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