Kuala lumpur: The country's labour market remains stable, recording an unemployment rate of 2.9 percent, according to the Statistics of the Labour Force, Malaysia, January 2026, released by the Department of Statistics (DOSM) today. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stated that the labour market in January 2026 continued its expansion, reflecting favourable economic growth with steady employment growth and a persistently low unemployment rate.

According to BERNAMA News Agency, the labour force maintained its positive momentum, increasing by 0.1 percent month-on-month to 17.28 million persons, up from 17.27 million in December 2025. The labour force participation rate also edged up by 0.1 percentage point to 70.9 percent, signaling more active participation in the market.

The number of employed individuals saw a marginal rise of 0.04 percent to 16.77 million from 16.76 million in the previous month. Meanwhile, the unemployed recorded a slight uptick of 0.3 percent, reaching 509.6 thousand persons compared to 508.0 thousand in December 2025. The unemployment rate for January remained unchanged at 2.9 percent.

Mohd Uzir anticipates that Malaysia's labour market will continue to be favourable in the coming months, with the unemployment rate expected to stay low, indicating a robust labour force condition. Labour force participation is expected to remain stable, supported by recovery in the Services, tourism, and technology export sectors.

Employment opportunities are projected to rise in the high-tech and services subsectors, driven by automation, AI, digital advancements, and foreign investment. Despite global uncertainties, the country's strong domestic economic fundamentals and stable labour demand and supply are predicted to support the growth of Malaysia's labour market.