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

Summary

The Department of Statistics Malaysia (DOSM) reports that the national unemployment rate was unchanged at 3.0% in July 2025, equivalent to about 521,600 people. The labour force expanded slightly to 17.47 million and employment rose to 16.95 million, with employees making up three quarters of employed persons. Key sectors — services (notably wholesale & retail, accommodation & F&B, and information & communication), manufacturing, construction, agriculture, and mining & quarrying — all recorded employment gains. Youth unemployment remains elevated: 10.2% for ages 15–24 and 6.2% for ages 15–30.

Key Points

Unemployment rate steady at 3.0% in July 2025 (≈521,600 people).
Labour force increased to 17.47 million; employment rose to 16.95 million (month‑on‑month +0.2%).
Employees account for 75.0% of employed persons (≈12.71 million); own‑account workers grew to 3.21 million.
Services led hiring, with gains also in manufacturing, construction, agriculture and mining & quarrying.
Underemployment eased slightly: people working <30 hours fell to 240,500; underemployment rate at 0.8%.
Youth unemployment remains a concern — 10.2% for 15–24 year‑olds (≈298,900 people).
Most unemployed (79.8%) are actively seeking work; long‑term unemployment (>1 year) is 5.1% of the unemployed.

Context and relevance

This snapshot shows a stable Malaysian labour market amid global uncertainty: modest job creation across multiple sectors, small rises in labour force participation, and slight reductions in underemployment. For HR professionals, policymakers and recruiters, the persistent youth unemployment and the concentration of employment growth in services and manufacturing are the key signals to guide hiring, training and upskilling strategies.

Why should I read this?

Quick and useful — if you want the headline without wading through the full DOSM release: unemployment is stable, jobs are being added across several industries, but youth joblessness is still high. Handy if you’re planning hiring, training or workforce strategy for the next quarter.