Unemployment Rate Holds at 2.9% in Jan-26

Malaysia’s labour market remained robust in Jan-26, with the unemployment rate unchanged at 2.9%. The jobless rate continued to be below 3.0% for the third straight month and still the lowest level in a decade

Labour demand was lower in Feb-26, with job vacancies falling by -28K to 96.5K (Jan-26: +125.0K), marking the lowest reading since Dec-23.

Unemployment Rate

By sector, services sector vacancies decreased by -21K to 58.6K (Jan-26: 79.6K), primarily attributable to contraction recorded in professional, scientific and technical activities, as well as administrative and support activities

Looking into 2026, we continue to expect that the unemployment rate will average around 3.0% (2025: 3.0%), on the back of the steady employment growth and sustained opportunities, especially in the domestic-oriented services sector, which continues to benefit from resilient household spending

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