Overview

• Malaysia's labour market continued to demonstrate resilience, with number of employed persons increased modestly by 0.01 per cent (+2.3 thousand persons) to 16.83 million persons, compared to previous month (May 2026: 16.82 million persons). The employment-to-population ratio, which indicates the ability of an economy to create employment, remained unchanged at 68.8 per cent, as in the prior month.

• From a sectoral perspective, the Services sector remained the primary contributor to total employment during the month, particularly in Transportation & storage, Accommodation and food & beverage service activities, and Wholesale & retail trade activities. Employment in the Manufacturing and Construction sectors also recorded growth, while the Agriculture and Mining & quarrying sectors decreased.

• The employees’ continued to make up the largest proportion of the total employed persons, accounting for 75.0 per cent during the month. The number of employees’ increased by 0.02 per cent (+2.5 thousand persons) to 12.61 million persons (May 2026: 12.61 million persons). On the same note, the number of own-account workers posted a slight increase by 0.04 per cent (+1.2 thousand persons) to 3.15 million persons (May 2026: 3.15 million persons).

• The number of unemployed persons in June 2026 continued to record increases by 0.9 per cent (+4.4 thousand persons) to 517.8 thousand persons (May 2026: 513.4 thousand persons). The unemployment rate for June stood at 3.0 per cent, the same as the previous month. 

• The labour force continued its upward in June 2026, expanding by 0.04 per cent (+6.7 thousand persons) to 17.34 million persons (May 2026: 17.34 million persons). The labour force participation rate (LFPR) remained at 70.9 per cent, unchanged from May 2026.

• The number of persons outside the labour force in June 2026 increased by 0.1 per cent (+6.4 thousand persons) to 7.11 million persons (May 2026: 7.10 million persons). Housework/family responsibilities was the main reason for being outside the labour force, accounting for 43.3 per cent, followed by the schooling/training category which constituted 40.3 per cent.

The full publication of the Labour Force Report, June 2026 can be downloaded through eStatistik Portal 

Released by: 

DEPARTMENT OF STATISTICS MALAYSIA

11th August 2026

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Baharudin Mohamad
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