PUTRAJAYA: Malaysia's labour market remained stable in March 2026, with the unemployment rate unchanged at 2.9%, supported by continued expansion in employment and labour force participation, according to the Statistics Malaysia Department.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the positive economic outlook during the month enabled the country’s labour market to sustain its steady growth momentum.
"The labour force increased by 0.1% to 17.31 million persons in March 2026 from 17.30 million in February, while the labour force participation rate (LFPR) remained at 70.9%,” he said in a statement on Tuesday (May 12).
Mohd Uzir said the number of employed persons also edged up by 0.1 per cent to 16.80 million persons compared with 16.79 million recorded in the previous month.
The department's Statistics of the Labour Force, Malaysia, March and First Quarter 2026 also show that the number of unemployed persons rose slightly by 0.4% to 509,000 persons from 506,800 in February, leaving the unemployment rate unchanged at 2.9%.
The chief statistician said employees continued to make up the largest share of total employment at 75%, increasing marginally to 12.60 million persons in March from 12.59 million previously.
"On the same note, the number of own-account workers recorded a 0.3% rise to 3.14 million persons compared with 3.13 million in February," he added.
Mohd Uzir said the services sector remained the main contributor to employment growth, particularly in accommodation and food and beverage services, information and communication activities, as well as transportation and storage activities.
"The manufacturing, construction and agriculture sectors also recorded increases in employment, while the mining and quarrying sector saw a slight decline," he added.
On unemployment, Mohd Uzir said actively unemployed persons, defined as those available for work and actively seeking jobs, accounted for 79.7% of total unemployed persons. This category increased by 0.3% to 405,800 persons in March from 404,700 in February.
At the state level, Mohd Uzir said the Federal Territory of Putrajaya recorded the lowest unemployment rate at 1.3%, followed by Pahang at 1.9%, while Selangor and Melaka each posted 2%.
He said Putrajaya also registered the highest LFPR at 79.2%, followed by Selangor at 78% and the Federal Territory of Kuala Lumpur at 76%.
Looking ahead, Mohd Uzir said Malaysia’s labour market is expected to remain stable, supported by strong domestic fundamentals and ongoing structural transformation.
"However, growth is likely to be more moderate and increasingly shaped by external developments, particularly the trajectory of the global energy crisis and geopolitical conditions.
"As such, both businesses and the workforce will need to remain agile in navigating a more dynamic and uncertain economic environment," he said. - Bernama
