Malaysia’s unemployment rate fell to 2.9 per cent in November 2025, marking the lowest level in 11 years, according to the Statistics Department. The number of unemployed people declined slightly to 518,400, reflecting continued strength in the country’s labour market.
The last time the unemployment rate dropped below three per cent was in November 2014, said Mohd Uzir Mahidin, Malaysia’s chief statistician. “The total number of employed persons increased by 0.2 per cent to 17.09 million from 17.06 million in October 2025,” he said in a statement, cited by local media.
The number of unemployed also fell marginally by 0.1 per cent, from 518,900 in October to 518,400 in November. Mohd Uzir attributed the improvement to favourable economic conditions that continue to support steady growth in employment.
Employment gains were noted across both salaried and self-employed segments. The number of categorised employees rose by 0.1 per cent to 12.78 million, while “own-account” workers, or self-employed individuals, increased by 0.3 per cent to 3.26 million.
Of the unemployed population, 79.8 per cent were actively seeking work, a slight decrease from 413,800 in October to 413,500. Among them, 64.4 per cent had been unemployed for less than three months, whereas 5.0 per cent had been without work for more than a year. Meanwhile, the inactively unemployed — those who believed no jobs were available — fell by 0.2 per cent to 104,900 from 105,100 in October.
Looking ahead, Mohd Uzir forecasted continued stability and positive growth in the labour market. Key sectors driving employment growth included human health and social work, wholesale and retail trade, and accommodation and food services. Expansions were also observed in agriculture, manufacturing, construction, and mining and quarrying.
He highlighted that emerging job opportunities in strategic sectors, along with ongoing reskilling and upskilling initiatives, are expected to strengthen the labour market further. “Therefore, Malaysia’s labour market is forecast to remain competitive, inclusive and resilient in addressing global challenges,” Mohd Uzir added.
The strengthening of the labour market coincides with a more robust performance of Malaysia’s currency. On Jan 9, the ringgit appreciated against the Singapore dollar to about RM3.16 (US$0.77), compared with RM3.29 on the same date last year, according to Bernama.
In December 2025, the ringgit reached its strongest level against the US dollar in over four years. On Dec 12, it rose 0.5 per cent against the greenback to 4.0860, its highest since May 2021. With an overall gain of more than 9 per cent against the US dollar in 2025, Malaysia’s currency was Asia’s best-performing currency for the year.
Economists have linked the ringgit’s strength to Malaysia’s resilient economic fundamentals, foreign inflows, and sustained growth in key sectors, which in turn support a dynamic labour market. The combination of low unemployment and a strengthening currency reflects Malaysia’s economic recovery and competitiveness amid ongoing global challenges.
As Malaysia enters 2026, the labour market and currency trends signal a positive outlook, with policymakers aiming to maintain inclusivity, promote reskilling initiatives, and leverage emerging opportunities in strategic industries to further support employment and economic stability.
