Malaysia Labour Market Holds Strong, Boosting Confidence in Consumer Spending

KUALA LUMPUR – Malaysia’s labour market remained resilient in July, with the unemployment rate steady at a decade-low of 3.0%, supported by sustained hiring in services and manufacturing sectors.

Despite global uncertainties, employment growth held firm at +0.2% month-on-month, driven by gains in wholesale and retail trade, accommodation, F&B, and information & communication. Manufacturing, construction, agriculture, and mining sectors also recorded positive hiring momentum.

Labour Market

“The labour market remained resilient in July despite rising external headwinds,” the report noted. The number of unemployed edged up slightly to 521,600 (June: 518,700), while active jobseekers also rose modestly to 416,200.

The labour force expanded to 17.47 million, with the participation rate unchanged at 70.8%. Analysts said stable labour conditions, coupled with the minimum wage policy, “bode well for consumer spending,” with private consumption forecast to grow +5.1% year-on-year in 2025.

Looking ahead, economists remain “cautiously optimistic” and maintained their 2025 GDP growth projection at +4.2% (2024: +5.1%), highlighting that steady wages in manufacturing continue to point to sector resilience. – Apex

Business News

Staff Writer

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