PETALING JAYA: The labour market is likely to stay steady for the rest of the year, with continued job creation and a low unemployment rate.
In July, the unemployment rate remained at 3% for the fourth straight month, supported by sustained hiring in the services sector.
However, unemployment numbers, rebounded by 0.6% month-on-month (m-o-m) for the first time in 13 months.
Meanwhile, employment growth slowed to 0.2% m-o-m, but the year-to-date average remained at 0.3%, above the 2024 average of 0.1%. With the final outcome settling at a 19% tariff, clarity has improved, and the drag on business sentiment should gradually ease.
“Looking ahead, stable labour market conditions, supportive fiscal and monetary policies, and robust investment activity, as well as increased tourism spending, are expected to provide resilience to household spending.“
For perspective, Malaysia’s lowest unemployment rate on record was 2.4% in 1997, prior to the Asian Financial Crisis.
