unemployment

by AZALEA AZUAR

MALAYSIA’S unemployment rate in June remained at 3%, with the number of jobless people dropping to 518,700, according to the Department of Statistics Malaysia’s (DOSM) latest labour force statistics for June and the second quarter of 2025 (2Q25).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said the labour market continued to grow positively in June, supported by the sustained expansion of the economy.

“This was reflected in a steady rise in employment and a further decline in unemployment. The labour force continued its upward trend in June 2025, increasing by 0.3% month-on-month to 17.43 million persons (May 2025: 17.38 million persons).

“The labour force participation rate (LFPR) in June 2025 stood at 70.8%, consistent with the rate recorded in May,” he said in a statement.

Uzir explained that the labour force in 2Q25 grew by 0.8% to 17.37 million people, up from 17.23 million in 1Q25.

The LFPR also slightly rose by 0.1% points to 70.8%, compared to 70.7% in the previous quarter.

“Reflecting this trend, the number of employed persons increased by 0.9% to 16.85 million persons (1Q25: 16.70 million persons). Meanwhile, the number of unemployed persons showed a decline of 1.0% to 520.9 thousand persons (1Q25: 526.3 thousand persons).

“The unemployment rate for 2Q25 dropped by 0.1% points to 3.0% from the previous quarter,” he added.

Meanwhile, Uzir noted that Malaysia’s labour market is expected to remain stable in the coming months. This is supported by growing domestic demand, increased productivity, more job opportunities and widespread investments, especially in technology and strategic sectors.

“Although there are challenges such as talent migration, global trade tensions and inflation, government policies focusing on digitalisation, technical training and investment incentives are expected to sustain medium- to long-term growth,” he said.