Malaysia’s unemployment rate reaches 3.1% in December 2024

This is the lowest rate that the country has seen since May 2015, with 544,300 persons unemployed.  

Malaysia’s Department of Statistics has released its’ Labour Force Statistics for December 2024 on 10 February 2025. The data revealed that the country’s unemployment rate in December 2024 hit the lowest rate since May 2015, at 3.1%, with 544,300 persons unemployed.  

Chief Statistician Malaysia, Dato’ Sri Dr. Mohd Uzir Mahidin said: "Towards the end of 2024, the Malaysian economy is showing resilience and strong growth."  

He added that the rate of employment in Malaysia is witnessing steady development, and the number of unemployed persons continued to decrease. 

Here is a breakdown of the statistics, according to unemployment, employment, within the labour force, as well as outside the labour force:  

Unemployment 

• Malaysia’s labour market performed well throughout the year, with unemployment remaining low while employment saw a steady expansion. 
• In December 2023, the unemployment rate stood at 3.3% and remained consistent till August 2024. Subsequently, the percentage remained at 3.2% till November 2024, followed by another drop by 0.01% in December 2024 (3.1%).
• The actively unemployed dropped from 436,200 in November 2024, to 432,800 a month later.  
  • Among those actively unemployed, 62.7% had been unemployed for less than three months, while 5.8% were in long-term unemployment for more than a year. 
  • Meanwhile, the number of individuals who believed that there were no jobs available, or the inactively unemployed, rose by 0.8% to 111,500 persons (November 2024: 110,600 persons). 

• The unemployment rate for youth aged 15 to 24 years decreased by 0.1 percentage points (pp) to 10.3%, recording 299,700 unemployed youths during December 2024 (November 2024: 10.4%; 300,600 persons). 
  • Similarly, the unemployment rate for youth aged 15 to 30 years declined by 0.1pp to 6.1%, with 410,800 unemployed youths compared to the previous month (November 2024: 6.2%; 415,600 persons). 
• In terms of the unemployment rate and LFPR by state, Selangor and Kedah recorded the lowest unemployment rate at 1.7% for Q4 2024, followed by Melaka (1.8%), Johor and Pulau Pinang (2.2%). 
• However, nine states experienced an increase in LFPR, indicating higher labour participation in the market. Selangor had the highest LFPR at 76.4%, followed by W.P. Kuala Lumpur (74.9%) and Pulau Pinang (73.2%). 

Employment 

•  During the month, the number of employed persons continued its positive trend, increasing by 0.2% (+28,400 persons), reaching 16.78mn persons (November 2024: 16.75mn persons).  
• The employment-to-population ratio, which indicates the ability of an economy to create employment, was unchanged at 68.3% as in the previous month. 
• In terms of economic sector, the number of employed persons in the services sector steadily increased, largely in wholesale & retail trade; art, entertainment & recreation; and accommodation and food & beverage services activities.  
  • On the same note, the manufacturing, construction and agriculture sectors also registered positive employment growth, while employment in mining & quarrying sector decreased during the month. 
• Most of the employed persons were categorised as employees’, making up 74.9% of the total employments in December 2024. This group rose by 0.1% (+14,500 persons) to 12.56mn persons (November 2024: 12.54mn persons).  
  • Likewise, the number of own-account workers also showed an upward trend, increasing by 0.4% (+11,400 persons) to 3.12mn persons (November 2024: 3.11mn persons). 

Labour force 

• The number of labour force in December 2024 remained on an upward trend, with a rise of 0.1% (+25,900 persons) to 17.32mn persons (November 2024: 17.29mn persons).  
• Accordingly, a higher labour force participation rate (LFPR) was recorded during the month at 70.6% compared to 70.5% in the previous month. 
• According to sex, the LFPR for men was at 83.4%, whereas for women, it was at 59.9%. 

Outside labour force 

• As for the inactivity group, the number of persons outside the labour force showed a slight decline of 0.04% to 7.22mn persons in December 2024 (November 2024: 7.23mn persons). 
• Housework/ family responsibilities were the main reason for being outside the labour force (43.1%), and schooling/ training reasons ranked second with 42.3%. 

Summarising the overall performance for the fourth quarter of 2024, the Chief Statistician highlighted that Malaysia’s labour market performed well throughout the year, with unemployment remaining low while employment saw a steady expansion.  

"The positive country’s labour market in 2024 was partly contributed by a sustained labour demand across various sectors, particularly in the private sector, which saw an increase in job opportunities.  

"The anticipation for Malaysia's labour force in 2025 is comparatively favourable, whereby employment was observed to rise consistently, while unemployment is expected to remain low," he added.  

READ MORE: Unemployment rate in Malaysia remained at 3.2% in November 2024: DOSM 

Lead image / Labour Force Statistics Dec '24

Infographics / DOSM