Malaysia’s unemployment rate steady at 3.0% in July 2025

Summary

Malaysia’s unemployment rate remained unchanged at 3.0% in July 2025, according to the Department of Statistics Malaysia (DOSM). The labour force and employment both edged up month-on-month, with the labour force reaching 17.47 million and employed persons rising to 16.95 million. The number of unemployed people was 521,600 in July.

Employment growth was broad-based: the services sector (notably wholesale & retail, accommodation & F&B, and information & communication) led gains, with manufacturing, construction, agriculture and mining & quarrying also adding jobs. Underemployment fell slightly and the majority of unemployed persons were actively seeking work, with most experiencing short-term joblessness.

Key Points

Unemployment rate held at 3.0% in July 2025, equal to 521,600 people.
Labour force rose to 17.47 million (up 0.2% month-on-month); labour force participation was 70.8% in June.
Employment increased to 16.95 million (up 0.2%); employees made up 75.0% of employment (12.71 million).
Own-account workers (self-employed) rose to 3.21 million (up 0.4%).
Services led sectoral employment gains; manufacturing, construction, agriculture and mining & quarrying also improved.
Underemployment (working <30 hours) fell to 240,500; underemployment rate stayed at 0.8%.
79.8% of the unemployed were actively seeking work; 64.3% had been unemployed for less than three months, 5.1% for more than a year.
Youth unemployment remained elevated: 10.2% for ages 15–24 and 6.2% for ages 15–30.
People outside the labour force edged up to 7.19 million; main reasons were housework/family responsibilities and schooling/training.

Context and relevance

This monthly snapshot shows a resilient Malaysian labour market: steady headline unemployment alongside modest growth in both labour force and employment. The broad-based sectoral gains suggest recovery is not confined to one area, while persistent youth unemployment highlights ongoing structural challenges for younger cohorts.

For HR professionals and policymakers, the figures underline the need to focus on upskilling, TVET/STEM and policies that support youth employment as Malaysia pursues productivity and green-economy transitions.

Why should I read this?

Quick and useful — the headline hasn’t changed, but the details matter. If you work in HR, workforce planning or policy, this saves you time: the labour force is growing, jobs are being added across sectors, underemployment is easing a touch, but youth unemployment is still a worry. Worth a skim if you’re tracking hiring markets or planning training and recruitment.

Source

Source: https://www.humanresourcesonline.net/malaysia-s-unemployment-rate-steady-at-3-0-in-july-2025