Malaysia’s unemployment rate edged down to 2.9% in August 2026 from 3.0% over the previous four months, easing from its highest level since October 2025. The number of unemployed persons fell to 511.6 thousand from 520.3 thousand a month earlier, while total employment was broadly unchanged at 16.87 million, pointing to persistent softness in the labor market.
At the same time, the youth unemployment rate for those aged 15 to 24 decreased to 10.1%, with 291.3 thousand individuals unemployed. The labor force was almost flat at 17.39 million, and the labor force participation rate inched up to 71.0% from 70.9%. The number of people outside the labor force held steady at 7.11 million.
