Labour demand in Malaysia rose 1.7% in Q2 2026, led by the semi-skilled category

Of the 31,500 jobs created in the quarter, 66.1% (or 20,800) were in the semi-skilled category.

Malaysia’s labour demand expanded by 1.7% year on year in Q2 2026, bringing the total number of jobs to 9.25mn, according to the Department of Statistics Malaysia (DOSM). 

The increase represented an additional 152,300 jobs year-on-year – up from 9.10mn recorded in the same quarter last year, despite continued global uncertainty stemming from geopolitical conflicts, supply-chain realignments, and cost pressures.

Filled jobs rise across all sectors

Of the total jobs recorded, 97.9% were filled positions, while 2.1% were vacancies. Filled jobs rose 1.7% to 9.05mn in Q2 2026, from 8.90mn a year earlier, supported by growth across all sectors.

The services sector accounted for the largest share of filled jobs at 4.83mn (53.4% of the total), followed by the manufacturing sector with 2.42mn jobs (26.7%) and the construction sector with 1.25mn jobs (13.8%).

Job vacancies stood at 195,700 in Q2 2026, up marginally from 194,900 a year earlier (+0.4%). Meanwhile, the manufacturing sector remained the largest contributor, accounting for 114,000 vacancies, or 58.3% of all openings; and the electrical, electronic and optical products sub-sector recorded 35,100 vacancies, followed by petroleum, chemical, rubber and plastic products with 19,100 vacancies.

Semi-skilled roles also dominated vacancies, representing 107,300 openings, or 54.8% of the total. Skilled vacancies totalled 50,200 (25.7%), while low-skilled vacancies stood at 38,200 (19.5%).

Services and semi-skilled roles drive job creation

According to the data, a total of 31,500 jobs were created in the quarter, a moderate decline of 1.2% from Q2 2025:

• The services sector led job creation with 14,400 new jobs, or 45.7% of the total, driven mainly by wholesale and retail trade, which created 8,600 jobs.
• The manufacturing sector created 12,100 jobs (38.3%), while construction added 3,100 jobs (9.8%).
• The semi-skilled category continued to lead job creation, accounting for 20,800 new jobs, or 66.1% of the total.
• This was followed by skilled roles with 7,900 new jobs (25.2%) and low-skilled roles with 2,800 jobs (8.7%).

Overall, Malaysia’s labour market remained resilient in Q2 2026, with businesses continuing to absorb workers amid sustained growth in filled jobs and a low unemployment rate of 3.0%.

READ MORE: Malaysia’s economy powers ahead as exports drive 6% growth in Q2 2026: DOSM 

Lead image / DOSM 

Infographics / DOSM