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Malaysia’s Unemployment Rate Drops to 2.9% in November 2025, Marking 11-Year Low


Kuala lumpur: Malaysia’s unemployment rate in November 2025 dropped to its lowest level in 11 years, reaching 2.9 per cent, with 518,400 people unemployed, according to the Statistics of the Labour Force Malaysia for November 2025 released by the Department of Statistics Malaysia (DOSM) today. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stated that the last time the unemployment rate fell below three per cent was in November 2014.



According to BERNAMA News Agency, the sharp improvement reflects the continued strengthening of the labour market, supported by stable economic conditions and steady demand for labour across key sectors. “The labour force expanded by 0.2 per cent to reach 17.61 million persons in November 2025 compared to 17.58 million in October 2025, while labour force participation rate during the month was unchanged at 70.9 per cent,” Mohd Uzir said in a statement.



Mohd Uzir noted that Malaysia’s labour market is expected to remain stable and continue to grow in the coming months, supported by emerging job opportunities in strategic sectors, ongoing reskilling and upskilling initiatives, and more balanced employment growth between urban and rural areas. “Therefore, Malaysia’s labour market is forecast to remain competitive, inclusive and resilient in addressing global challenges, while leveraging opportunities from digital transformation and the green agenda,” he added.



He also highlighted that the number of employed persons continued to rise, growing 0.2 per cent to 17.09 million compared to 17.06 million previously, while unemployed persons decreased slightly to 518,400 from 518,900 in the previous month. Employees accounted for 74.8 per cent of total employment, increasing to 12.78 million persons against 12.76 million in October 2025, while own-account workers rose to 3.26 million compared to 3.25 million the previous month.



Employment growth remained broad-based, led by steady gains in the services sector, particularly in human health and social work, wholesale and retail trade, accommodation, as well as food and beverage services. Growth was also recorded in the agriculture, manufacturing, construction, mining and quarrying sectors.



Mohd Uzir added that the number of people working less than 30 hours per week rose to 237,000 persons in November 2025, compared to 233,200 in October 2025, while time-related underemployment increased to 129,900 persons from 126,400 previously. “As a result, the time-related underemployment rate rose to 0.8 per cent in November 2025 compared to 0.7 per cent in October 2025,” he noted.