Malaysia Labor Force Grows to 17.33 Million in Q3 2026

The Department of Statistics Malaysia reported that the national labor force grew by 0.3 percent in the third quarter of 2026, reaching 17.33 million people. The labor force participation rate rose to 71 percent, with the number of employed persons increasing to 16.82 million.

While employment grew, the number of unemployed persons rose by 0.8 percent to 513,700. Despite this increase in the raw number of unemployed individuals, the overall unemployment rate remained steady at 3 percent.

To address rapid technological shifts and economic transformation, the agency recommended strengthening workforce preparation. Proposed measures include expanding training in artificial intelligence and automation, supporting the redeployment of displaced workers, and increasing investment in productivity-enhancing technologies to ensure the workforce remains competitive.