PUTRAJAYA: Malaysia's labour market continued to chart steady progress in the first quarter of 2025, with key indicators showing growth in employment and labour force participation, coupled with a decline in the unemployment rate, according to the Statistics Department of Malaysia (DOSM).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the country's labour force grew by 0.8% to 17.23 million persons in the January-March period, from 17.10 million in the fourth quarter of 2024.
"The labour force participation rate (LFPR) rose slightly by 0.1 percentage points to 70.7%, compared to 70.6% in the previous quarter," he said in a statement on Friday (May 9).
In line with this development, the number of employed persons increased by 0.9% to 16.70 million, while the number of unemployed persons declined by 2.3% to 526,300 from 538,700 in the preceding quarter. As a result, the unemployment rate decreased to 3.1% from 3.2% previously.
On underemployment, he said the number of individuals working less than 30 hours per week fell by 5.9% to 242,700 persons, while time-related underemployment or those willing and able to work more hours, dropped by 3.8% to 146,900 persons, maintaining a rate of 0.9%.
However, skill-related underemployment saw a marginal increase of 0.4%, reaching 1.95 million persons, or 35.7% of tertiary-educated individuals employed in semi- or low-skilled jobs.
At the state level, Putrajaya recorded the lowest unemployment rate at 1.8%, followed by Melaka and Pahang (1.9% each) and Selangor (2.2%). Selangor also posted the highest LFPR at 77.9%, trailed by Putrajaya (77.6%) and Kuala Lumpur (75.4%).
Touching on monthly data, Mohd Uzir said the number of unemployed persons in March 2025 decreased to 529,600, compared to 532,800 in February, bringing the monthly unemployment rate to 3.1%.
"An optimistic economic position in March has allowed the country's labour market to continue to develop steadily," he said, adding that Malaysia's labour force in March rose by 0.2% to 17.31 million persons from 17.27 million in February.
He said the country's economic performance during the first quarter shows strong growth, driven by increased investment, labour market stability, and a robust export sector.
"These developments reflect continued confidence in the labour market, underpinned by rising employment and participation rates. The labour market is expected to remain resilient and expand further in the coming months, supported by strong labour demand and strategic policy initiatives," he added. - Bernama
