Overview
Labour Force
Malaysia's labour force continued to strengthen in 2025, increasing by 1.1 per cent or equivalent to 184.6 thousand persons recording 17.09 million persons as compared to 16.90 million persons in the previous year. Therefore, labour force participation rate (LFPR) went up by 0.2 percentage points to 70.8 per cent, as against 70.6 per cent in 2024, marking the highest level ever recorded.
Employed Person
In 2025, the number of employed persons continued to grow, increasing by 1.3 per cent (+211.5 thousand persons) to reach 16.58 million persons (2024: 16.37 million persons). Consequently, the employment-to-population ratio, an indicator of the ability of an economy to create employment, rose by 0.3 percentage points to 68.7 per cent, compared to 68.4 per cent in the previous year.
Unemployment
In 2025, the unemployment rate continued to trend downward, declining by 0.2 percentage points to 3.0 per cent from 3.2 per cent in 2024. The rate was also lower than the prepandemic rate of 3.3 per cent recorded in 2019, which reached its lowest level in a decade. Reflecting this improvement, the number of unemployed persons decreased by 5.0 per cent to 507.2 thousand persons (2024: 534.1 thousand persons).
Outside Labour Force
The number of persons in the outside labour force slightly increased by 0.2 per cent in 2025, rising by 11.1 thousand persons to record 7.03 million persons (2024: 7.02 million persons). Females accounted for the majority of persons outside the labour force, constituting 69.5 per cent of the total, while males represented the remaining 30.5 per cent. The number of females in this category rose up by 0.7 per cent to 4.89 million persons compared to 4.86 million persons in 2024. Conversely, the number of males in the outside labour force decreased by 1.0 per cent, recording 2.14 million persons, compared with 2.16 million persons in the previous year.
Selected Indicators by State
Labour force participation strengthened across all states in 2025, with each state recording a higher LFPR compared with the previous year. Among the states, W.P. Putrajaya registered the highest LFPR at 79.0 per cent, followed by Selangor (78.4%), W.P. Kuala Lumpur (75.8%), Pulau Pinang (72.2%) and Johor (72.0%).
The unemployment rate declined in ten states during the year. W.P. Putrajaya recorded the lowest unemployment rate at 1.1 per cent, followed by Melaka (1.6%), and Pahang (1.8%). Conversely, five states recorded unemployment rates above the national level of 3.0 per cent, namely Sabah (7.2%), W.P. Labuan (6.3%), Perlis (3.9%), as well as Kelantan and Perak, both at 3.5 per cent.
The full publication of the Labour Force Survey, Malaysia 2025 can be downloaded through eStatistik Portal.
Released by:
DEPARTMENT OF STATISTICS MALAYSIA
26 JUNE 2026
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