Malaysia’s unemployment rate remained at 3.0% in July 2026, unchanged for the fourth consecutive month and matching its highest level since October 2025. The number of unemployed persons edged up to 520.3 thousand from 517.8 thousand in June, while total employment was broadly stable at 16.85 million, underscoring ongoing softness in the labor market.
The services sector continued to be the main driver of employment, especially in arts, entertainment and recreation, accommodation and food & beverage services, as well as financial and insurance activities.
Youth unemployment for those aged 15 to 24 years held steady at 10.2%, corresponding to 292.5 thousand unemployed youths. The overall labor force was little changed at 17.37 million, with the labor force participation rate stable at 70.9%. The number of people outside the labor force also remained unchanged at 7.11 million.
