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The optimistic economic position in March supported the steady development of the country's labour market and as a result, the labour force expanded further by 0.2%, reaching 17.31mn persons, compared to 17.27mn in the preceding month.
Malaysia’s Department of Statistics released its Labour Force Statistics for March and Q1 2025 on 9 May (Friday), showing continued improvement in the country’s labour market. The number of unemployed persons fell to 529,600 in March, a 0.6% decline from the preceding month.
Chief Statistician Dato’ Sri Mohd Uzir Mahidin attributed the positive trend to an optimistic economic position, which supported steady labour market development. The labour force expanded by 0.2% to 17.31mn persons (February: 17.27mn), while employment grew by 0.3% to 16.78mn (February: 16.73mn). The unemployment rate remained unchanged at 3.1%.
Here is a breakdown of the statistics according to:
- Unemployment
- Employed persons
- Labour force
- Outside labour force
Unemployment
- The number of unemployed persons fell from 532,800 in February 2025 to 529,600 in March 2025.
- The unemployment rate in March 2025 remained at 3.1% as in the previous month.
- In March 2025, the number of actively unemployed were 420,700, and the number of inactively unemployed were 108,900.
"By duration of unemployment for actively unemployed, 63.9% were those who were unemployed for less than three months, while 5.5% were in long-term unemployment for more than a year. At the same time, those who believed that there were no jobs available or the inactively unemployed reduced by 1.1% to record 108,900 persons (February 2025: 110,100 persons)," Dato' Sri Mohd Uzir Mahidin shared.
Employed persons
- The number of employed persons increased from 16.73mn in Feb 2025 to 16.78mn in March 2025.
- The employment-to-population ratio in March 2025 was 68.6%, which is slightly higher than that of the previous month (68.5%).
- In March 2025, the employees' category accounted for 75.2% of the total employed persons. The breakdown is as follows:
- Employees: 75.2%
- Own-account workers: 18.8%
- Employers: 3.3%
- Unpaid family workers: 2.8%
According to the Chief Statistician, most of the employed persons were primarily engaged in the services sector, particularly in accommodation and food & beverage services; information & communication; and professional, scientific & technical activities. An increasing number of employed persons has also been seen in the manufacturing, construction, agriculture, and mining & quarrying sectors.
Labour force
- The labour force stood at 17.31mn, which is an increase from the preceding month (February 2025: 17.27mn).
- The labour force participation rate (LFPR) was unchanged at 70.7% as in February 2025.
- LFPR by sex
- Male: 83.3%
- Female: 56.4%
Outside labour force
- In March 2025, 7.16mn persons were from outside the labour force, which was more than the previous month (February 2025: 7.15mn) as well as the previous year (March 2024: 7.05mn)
- Housework/ family responsibilities comprised the largest share of the outside labour force in comparison to schooling/training (41.7%)
Malaysia’s labour market for Q1 2025
Commenting on the first quarter of 2025, the Chief Statistician reported steady labour market growth. The labour force grew by 0.8% to 17.23mn (Q4 2024: 17.10mn), while the LFPE edged up to 70.7% (Q4 2024: 70.6%).
Employment rose by 0.9% to 16.70mn (Q4 2024: 16.56mn), and the number of unemployed persons declined by 2.3% to 526,300 (Q4 2024: 538,700). Consequently, the unemployment rate eased to 3.1%, down from 3.2% in the previous quarter.
Part-time work also saw improvements. The number of persons working less than 30 hours a week fell by 5.9% to 242,700, while those underemployed in terms of hours (willing and able to work more) dropped by 3.8% to 146,900 — maintaining a time-related underemployment rate of 0.9%. However, skill-related underemployment — those with tertiary education in lower-skilled jobs — rose slightly by 0.4% to 1.95mn, with a rate of 35.7% (Q4 2024: 35.8%).
By state, Putrajaya recorded the lowest unemployment rate at 1.8%, followed by Melaka and Pahang (1.9%), and Selangor (2.2%). Eight states saw an increase in LFPR, with Selangor leading at 77.9%, followed by W.P. Putrajaya (77.6%) and W.P. Kuala Lumpur (75.4%).
To conclude, Malaysia’s strong economic performance in March was supported by increased investment, labour market stability, and a boost in the export sector. Reflecting these trends, the labour force continued to grow, with a low unemployment rate and rising employment — mainly driven by the services and manufacturing sectors. The increase in the labour force participation rate also signals growing confidence in the job market.
Looking ahead, the labour market is expected to expand further, supported by strong labour demand and strategic initiatives to maintain stability. Overall, Malaysia’s labour market is poised to remain resilient and optimistic despite global economic uncertainties.
READ MORE: Malaysia's economy holds steady amid global uncertainty: DOSM
Lead image / DOSM
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