Malaysia’s August 2026 unemployment rate hits new low of 2.9pc

People walk outside the KLCC Twin Towers in Kuala Lumpur on January 1, 2023. — Picture by Hari Anggara

First Published: Friday, 09 Oct 2026 1:14 PM MYT

PUTRAJAYA, Oct 9 — Malaysia’s unemployment rate declined to 2.9 per cent in August 2026 from 3.0 per cent in July, with the number of unemployed persons falling by 8,700 to 511,600, according to the Department of Statistics Malaysia (DOSM).

In its Labour Force Statistics for August 2026 released today, DOSM said the number of employed persons increased by 0.2 per cent to 16.87 million from 16.85 million in the preceding month.

The labour force expanded by 0.1 per cent to 17.39 million from 17.37 million, while the labour force participation rate edged up to 71.0 per cent from 70.9 per cent.

DOSM said the employee category, which accounted for 74.9 per cent of total employed persons, recorded a marginal increase of 0.1 per cent to 12.63 million in August from 12.62 million in July.

“Meanwhile, the number of own-account workers increased by 0.2 per cent to 3.17 million from 3.16 million in the previous month,” it said.

DOSM said actively unemployed persons, comprising those who were available for work and actively seeking employment, accounted for 79.2 per cent of the total unemployed population. Their number declined by 1.8 per cent to 405,100 from 412,600 in July.

“Of the actively unemployed, 64.2 per cent had been unemployed for less than three months, while the long-term unemployed, or those out of work for more than a year, accounted for five per cent.

“Meanwhile, the number of inactively unemployed persons, who believed that no jobs were available, decreased by 1.2 per cent to 106,500 from 107,700 in July,” it said.

The unemployment rate among youths aged 15 to 24 fell by 0.1 percentage points to 10.1 per cent, with the number of unemployed persons in this group decreasing to 291,300 from 292,500 in July.

Similarly, the unemployment rate among youths aged 15 to 30 declined by 0.1 percentage points to 6.3 per cent, while the number of unemployed persons in this age group fell to 394,600 from 404,500 in the previous month.

In a related development, DOSM said the number of persons outside the labour force decreased marginally by 0.1 per cent, or 4,500 persons, to 7.11 million in August.

Housework and family responsibilities were the main reasons for being outside the labour force, accounting for 43.6 per cent, followed by attending school or undergoing training at 40.2 per cent. The remaining 16.2 per cent cited other reasons, including retirement and disability.

DOSM said the labour market’s sustained positive performance continued to support the country’s economic growth.

“Moving forward, enhancing worker productivity through skills development and the adoption of technology is crucial to ensuring sustainable economic growth and improving the well-being of the people,” it said. — Bernama