Malaysia’s unemployment rate steady at 3.0% in July 2025

Summary

The Department of Statistics Malaysia (DOSM) reported the national unemployment rate at 3.0% in July 2025, equivalent to 521,600 people. The labour force expanded slightly month‑on‑month to 17.47 million, while employment rose to 16.95 million. Employees remain the largest group in employment (75.0%), and own‑account workers increased modestly. Gains were broad‑based across services, manufacturing, construction, agriculture and mining. Underemployment and time‑related underemployment fell, but youth unemployment remains elevated. DOSM expects the labour market to stay stable, supported by domestic fundamentals, investment and policy measures focused on upskilling and the green economy.

Key Points

Unemployment rate held at 3.0% in July 2025 — 521,600 unemployed persons (Labour Force Statistics, DOSM).
Labour force rose 0.2% month‑on‑month to 17.47 million; employment up 0.2% to 16.95 million.
Employees make up 75.0% of employed persons (12.71 million); own‑account workers increased to 3.21 million.
Services led job gains (wholesale & retail, accommodation & F&B, information & communication); manufacturing, construction, agriculture and mining also improved.
Underemployment (working <30 hours) fell 1.0% to 240,500; time‑related underemployment fell 2.1% to 134,800; underemployment rate at 0.8%.
Most unemployed are actively job‑seeking (79.8% or 416,200); 64.3% have been unemployed for <3 months; 5.1% for >1 year.
Youth unemployment remains high: 15–24 years at 10.2% (298,900); 15–30 years at 6.2% (399,000).
People outside the labour force edged up to 7.19 million; main reasons are housework/family (43.7%) and schooling/training (40.8%).

Context and relevance

This is a concise, data‑driven snapshot of Malaysia’s labour market in July 2025. For HR professionals, recruiters and policymakers the numbers confirm steady overall employment growth but flag persistent youth unemployment and pockets of underutilised labour. The cross‑sector gains suggest resilience amid global uncertainty, while DOSM’s outlook highlights priorities — upskilling, innovation and the green economy — that will shape hiring and training strategies.

Why should I read this?

Quick and useful — the headline’s steady, but the detail matters. If you hire, train or plan workforce strategy in Malaysia, this tells you where jobs are actually growing, which groups need help (young people, underemployed) and what the government thinks will drive future demand. Short read, practical takeaways. Punchy: skim the key points, dive in for the stats you’ll quote in meetings.