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More people entered employment across key sectors despite ongoing global uncertainties.
According to the Department of Statistics Malaysia (DOSM), the unemployment rate in July 2025 stood unchanged at 3.0%, equivalent to 521,600 unemployed persons. These figures were published in the Labour Force Statistics, Malaysia, July 2025 release.
Labour force and employment trends
The labour force continued to expand, rising 0.2% month-on-month to reach 17.47mn persons as compared to 17.43mn persons in June. At the same time, the labour force participation rate was recorded at 70.8% in June.
Employment was also on the rise, with the number of employed persons increasing 0.2% to 16.95mn in comparison to 16.92mn in June. The number of unemployed persons, meanwhile, grew slightly by 0.6% to 521,600, an increase from 517.7 thousand persons in June keeping the unemployment rate unchanged at 3.0%.
Employees made up the bulk of employment, accounting for 75.0% of the total employed persons or 12.71mn persons. This reflected a small increase of 0.1% compared to 12.69mn in June.
The number of own-account workers, such as self-employed individuals, rose by 0.4% to 3.21mn in July, up from 3.20mn in the previous month.
Sectoral performance
The services sector continued its positive momentum, particularly in wholesale & retail trade, accommodation and food & beverage services, and information & communication.
Employment also picked up in the manufacturing, construction, agriculture, as well as mining & quarrying sectors, signalling broad-based gains across industries.
Underemployment indicators
The number of people working fewer than 30 hours a week fell by 1.0% to 240,500 in July, down from 243,100 in June.
Within this group, time-related underemployment, referring to those working under 30 hours but available for more, decreased by 2.1% to 134,800 people. The underemployment rate remained at 0.8%.
Insights on unemployment
Most unemployed individuals were actively seeking work. In July, 79.8% of the unemployed were actively searching for a job, totalling 416,200 people. This marked a 0.4% increase from 414,400 in June.
Among them, 64.3% had been unemployed for less than three months, while 5.1% were in long-term unemployment lasting more than a year.
The number of inactively unemployed, defined as those who believed no jobs were available, rose by 1.1% to 105,500 compared to 104,300 in June.
Youth unemployment
Youth unemployment remained high. For those aged 15 to 24 years, the unemployment rate was 10.2%, affecting 298,900 people compared to 297,500 in June.
For the wider group aged 15 to 30 years, the unemployment rate stood at 6.2%, with 399,000 unemployed youths compared to 396,800 in June.
Outside the labour force
The number of people outside the labour force increased slightly by 0.2% to 7.19mn in July, an increase from 7.18mn in June.
Housework and family responsibilities made up the largest share at 43.7%, followed by schooling and training at 40.8%.
Future outlook
Dato’ Sri Dr Mohd Uzir Mahidin, Chief Statistician Malaysia said: “The labour market sustained its positive trajectory, underpinned by continued improvements in domestic economics despite global economic uncertainty.”
Looking forward, DOSM expects Malaysia’s labour market to remain stable and resilient, supported by strong domestic fundamentals, strategic investments, and government policies. Focus areas such as upskilling, innovation, and the green economy are expected to help sustain employment growth and global competitiveness.
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Lead image / DOSM Facebook
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