Overview

• The labour force continued its upward trajectory in July 2026, rising by 0.1 per cent (+21.0 thousand persons) to 17.37 million persons (June 2026: 17.34 million persons). The labour force participation rate (LFPR) remained unchanged at 70.9 per cent.

• Malaysia’s labour market in July 2026 sustained its resilience, as the number of employed persons grew modestly by 0.1 per cent (+18.5 thousand persons) to 16.85 million persons, compared to 16.83 million in June 2026. The employment-to-population ratio, reflecting the economy’s capacity to generate jobs, held steady at 68.8 per cent, unchanged from the previous month.

• The Services sector continued to serve as the primary driver of total employment during the month. Growth in this sector was largely contributed by Arts, entertainment and recreation, Accommodation and food & beverage service activities as well as Financial and insurance/ takaful activities. Likewise, employment expanded across all other sectors namely Agriculture, Mining & quarrying, Manufacturing and Construction.

• The employees’ category remained the largest share of the employed persons, accounting for 74.9 per cent in July 2026. The number of employees’ edged up by 0.1 per cent (+7.6 thousand persons) to 12.62 million persons (June 2026: 12.61 million persons). Similarly, the number of own-account workers increased marginally of 0.3 per cent (+8.7 thousand persons) to 3.16 million persons (June 2026: 3.15 million persons).

• The number of unemployed in July 2026 went up by 2.5 thousand persons (+0.5%) to 520.3 thousand persons (June 2025: 517.8 thousand persons). The unemployment rate was unchanged at 3.0 per cent, as in the previous month.

• The number of persons outside the labour force in July 2026 recorded a marginal increase of 0.01 per cent (+0.7 thousand persons) to 7.11 million persons (June 2026: 7.11 million persons). The largest component of the outside labour force was housework/family responsibilities, accounting for 43.3 per cent, followed by the schooling/training category which constituted 40.2 per cent.

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