Malaysia’s jobless rate fell to its lowest in nearly a decade at the end of 2024 as the number of people employed outpaced the expansion in the labour force, official data on Monday (February 10) showed.
The unemployment rate in December was down to 3.1%, the lowest since May 2015, according to a statement from the Department of Statistics Malaysia. Economists generally consider a 3% unemployment rate as the economy has full employment.
During the month, 544,300 individuals were unemployed versus 546,700 people in November.
“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,” said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.
Key sectors such as manufacturing, particularly electrical and electronics, and services will propel job creation, he said.
The labour force in December expanded by 0.1% to 17.32 million persons, with the labour force participation rate increasing up 0.1 percentage point to 70.6%.
The employee category, comprising the large majority of the workforce, saw a 0.1% increase to 12.56 million persons. Own-account workers — people who operate their farm or business or engage in full-time trade without hiring paid employees — also gained 0.4% to 3.12 million persons.
By sectors, employment in the services sector continued to increase, mainly in wholesale and retail trade; art, entertainment and recreation; and accommodation and food-and-beverage services. The manufacturing, construction and agriculture sectors also reported employment growth.
However, employment in the mining and quarrying sector decreased during the month.
In terms of age groups, unemployment for people between 15 and 24 years old — those just entering the labour market following education — inched 0.1 percentage point lower to 10.3% or slightly under 300,000 youths. – The Edge Malaysia
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