Kuala lumpur: The unemployment rate in Malaysia remained constant at 3.0 per cent in June 2026, with the number of unemployed individuals reaching 517,800, as detailed in the Labour Force Statistics for June 2026 and the Second Quarter of 2026 released today.
According to BERNAMA News Agency, the Department of Statistics Malaysia (DOSM) noted a slight increase in the number of employed persons, which rose by 0.01 per cent to 16.83 million in June 2026 compared to 16.82 million in May 2026. Meanwhile, the number of unemployed persons increased from 513,400 to 517,800, marking a 0.9 per cent rise month-on-month.
The labour force witnessed a marginal increase of 0.04 per cent, amounting to 17.34 million persons in June 2026, consistent with May 2026 figures. The labour force participation rate (LFPR) remained steady at 70.9 per cent, unchanged from the previous month.
The employees' category, making up 75.0 per cent of the total employed population, saw a slight increase of 0.02 per cent, reaching 12.61 million persons in June 2026. Similarly, the number of own-account workers rose marginally by 0.04 per cent, registering 3.15 million persons.
The services sector continued to be the main driver of employment in June 2026, notably in areas such as transportation and storage, accommodation and food and beverage service activities, alongside wholesale and retail trade.
In terms of youth unemployment, the rate for individuals aged 15 to 24 years stood at 10.2 per cent, with 292,200 unemployed youths (up from 291,600 in May 2026). The unemployment rate for those aged 15 to 30 years remained stable at 6.3 per cent, accounting for 400,800 unemployed youths.
At the state level, Putrajaya recorded the lowest unemployment rate at 1.3 per cent in the second quarter of 2026. Melaka and Pahang followed with rates of 2.0 per cent, while Selangor reported an unemployment rate of 2.1 per cent.
Five states exceeded the national LFPR, with Putrajaya leading at 79.4 per cent, followed by Selangor at 77.9 per cent and Kuala Lumpur at 76.0 per cent.
The DOSM anticipates a positive outlook for Malaysia's economic and labour market from July 2026 onwards, driven by stable domestic economic conditions, ongoing investment activity, and a resilient labour market. However, prolonged uncertainties in global energy markets, geopolitical developments, and external trade conditions may impact business costs and hiring decisions if these issues persist.