The labour market remains resilient as the employment rate of Malaysia proceeded on its positive path in October 2025, indicating the strength of the labour market in the changing economic environment. Department of Statistics Malaysia (DOSM) reported that the number of employed people has improved to 17.06 million, which is a 0.2 percent increment over September. The increase in employment was wide-ranging with the Services sector spearheading the growth, assisted by an increase in Agriculture, Manufacturing, and Construction. Although there was a slight increase in unemployment levels, there was a stable unemployment rate of 3.0% levels. The unchanged economic strength of Malaysia and the ability to create sustainable employment opportunities are highlighted by stable labour participation and more hiring in major industries.
Steady Employment Growth Signals Economic Stability
The labour market kept on improving in October 2025, as Malaysia witnessed a growth of 33.8 thousand in employment. This took total employment to 17.06 million, which reiterated the ability of the economy to adjust itself to global uncertainties. The employment to population ratio was stable in 68.8 which is an indication that jobs are being created in line with population growth. This stability is an indicator of high domestic demand, increased business confidence and growth of emerging service based industries.
Services Sector Drives Workforce Expansion
The biggest job creator of October was the Services sector. It is worthwhile to note that there was also a strong hiring in the Accommodation and Food and Beverage services due to the increasing tourism and consumer spending. Wholesale and Retail Trade also boosted, and was backed by lively domestic trade. Increased Information and Communication operations underscored how the country was going digital, and some companies were increasing their capacity to deal with the increasing technological needs.
The rest of the sectors such as Agriculture, Manufacturing and Construction registered moderate growth in employment- they showed balanced growth in the economy. The only industry that saw a decrease was that of Mining & Quarrying which were exposed to lower production and lower world demand to its commodities.
Stronger Employee Base and Rising Own-Account Workers
A total of 74.8 percent of the total workforce consisted of employees. Their figures went up marginally to 12.76 million, which shows that formal job creation was on a steady upswing. At the same time, own-account workers (who are mostly freelancers, small traders, and self-employed people) also increased by 11.9 thousand, and amounted to 3.25 million. This trend is an indication of the growing gig economy and the freedom of self-employment in Malaysia.
Combined, these changes point to a diversifying and adjusting labour force that is managing the changes in economic realities.
Unemployment Remains Stable Despite Slight Increase
Although the number of unemployed people marginally went up by 0.3 thousand people, the unemployment rate did not change and stood at 3.0%. This consistency is an indication of a robust labour market where potential employees still get opportunities. The numbers of October show that demand of workforce is high in all sectors, despite the influx of new entrants and job transitioners to the workforce.
Labour Force Participation Holds Steady
The total number of labour force in Malaysia grew to 17.58 million, just to mention an increment of 34.2 thousand people. The Labour force participation rate (LFPR) remained steady at 70.9 per cent indicating a steady activity in the economy.
The out of labour force population also increased slightly to 7.22 million. Most of them were people that were doing housework and family duties (43.6%), then came those who were doing school work or training (40.7%). This distribution shows changing patterns of households and increasing educational participation.
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