Malaysia’s unemployment rate was 2.9% in February 2026, unchanged for the fourth straight month and matching the lowest level since November 2014. The number of unemployed persons fell by 0.6% from the previous month to 506.8 thousand. At the same time, total employment rose by 0.1% to 16.79 million, keeping the employment-to-population ratio at 68.8%.
Job gains were concentrated in the services sector, led by wholesale and retail trade, followed by accommodation and food & beverage services, as well as information and communication activities. By employment status, employees made up 75.0% of total employment, edging up to 12.59 million, while the number of own-account workers also increased to 3.13 million.
The labor force grew by 0.1% to 17.30 million, with the labor force participation rate holding steady at 70.9%. Meanwhile, the number of persons outside the labor force fell slightly to 7.10 million, mainly reflecting declines among those engaged in housework or family responsibilities and those in schooling or training.
