Malaysia: fewer than 3 in 100 in the labour force are jobless, but youth unemployment is still 10.1%

In Malaysia, fewer than 3 in every 100 people in the labour force are unemployed. The Department of Statistics Malaysia (DOSM) announced on 9 October 2026 that the August unemployment rate was 2.9%, 0.1 percentage points lower than July's 3.0%. The number of unemployed fell from 520,300 in July to 511,600, a drop of 8,700, or 1.7%.

The same release shows the labour force rose to 17.39 million, about 20,100 more than in July. Employment rose to 16.87 million, up about 28,800, and the employment-to-population ratio rose 0.1 percentage points to 68.9%. The labour force participation rate edged up from 70.9% to 71.0%. DOSM described the August labour market as resilient.

The rise in employment (about 28,800) was larger than the rise in the labour force (about 20,100). The gap of about 8,700 matches the fall in the number of unemployed.

Most active job seekers have been jobless for under three months

According to DOSM data compiled by The Star, there were 405,100 active job seekers among the unemployed, or 79.2% of all unemployed people, down 1.8% month on month.

Among these active job seekers, 64.2% had been unemployed for less than three months, while 5% had been unemployed for more than a year.

The Vibes reported that the number of inactive unemployed people was 106,500, slightly lower than July's 107,700.

Youth unemployment is markedly higher

The national average hides differences between age groups. The Star reported that the unemployment rate for those aged 15 to 24 was 10.1% in August, down 0.1 percentage points, but 291,300 young people were still unemployed. The rate is about three and a half times the overall rate. For those aged 15 to 30, the rate was 6.3%, also down 0.1 percentage points, with 394,600 unemployed.

On this basis, people aged 15 to 30 make up roughly 77% of the 511,600 unemployed nationwide (Focus-50 calculation).

7.11 million people outside the labour force

According to figures cited by Malay Mail, 7.11 million people were outside the labour force, 4,500 fewer than the previous month. The main reasons were housework and family responsibilities (43.6%) and education or training (40.2%); the remaining 16.2% included retirement and disability.

On the make-up of employment, there were 12.63 million employees in August, 74.9% of total employment. Own-account workers numbered 3.17 million, up 0.2% month on month.

September figures are due on 11 November

DOSM's release page shows that the next labour force statistics, covering September, are scheduled for 11 November 2026. As of 6 November 2026, the September figures had not been published, so August remains the latest official data.

Business Today reported in June 2026 that Kenanga had kept its 2026 full-year unemployment forecast at 2.9%, the same as the actual August figure.

Analysis: how to read these numbers

The following is Focus-50's analysis and adds no new data. The national unemployment rate is only an average, and conditions can differ widely between age groups.

• Look at the figure for your own group: unemployment among 15 to 24-year-olds is 10.1%, well above the overall 2.9%, so young job seekers should not judge the situation by the national figure alone.
• Note how long people have been out of work: among active job seekers, 64.2% had been unemployed for under three months and only 5% for more than a year.
• Be specific about skills: DOSM noted when releasing the data that raising skills and using technology to boost worker productivity are vital to ensuring sustainable economic growth.
• Watch the new data on 11 November: if the September figures show a different trend from August, rely on the latest release.

The unemployment rate is a national average report card, but what each person faces depends on which group they belong to.

Prices and details correct as of November 2026

Compiled by the F50 Editorial Team from public sources, for general reference only and not professional advice. Details are correct as of the publication date and may change.