Malaysia Unemployment Rate Rises to 3 Percent in Q2 2026

The Department of Statistics Malaysia reported that the national unemployment rate rose to 3 percent in the second quarter of 2026, an increase from 2.9 percent in the first quarter. The number of unemployed individuals grew 0.6 percent quarter-on-quarter to 509,700, while the total labor force expanded by 0.3 percent to 17.28 million people.

Despite the uptick in unemployment, labor demand grew 1.7 percent year-on-year, reaching 9.25 million jobs. This represents an increase of 152,300 positions compared to the second quarter of 2025. Of these available positions, 97.9 percent were filled, and 31,500 new jobs were created during the quarter.

The agency attributed the overall resilience of the labor market to Malaysia's diversified export markets and extensive trade networks, which helped mitigate pressures from supply chain realignments and geopolitical conflicts. However, officials warned that future hiring decisions and business costs could be negatively impacted by uncertainty in global energy markets, external trade conditions, and ongoing geopolitical developments.