National labour market still robust in Q1 2025, with 17.23 million workforce – DOSM

PUTRAJAYA: The national labour market remained robust in the first quarter of 2025 (Q1 2025) with a 7.23 million labour force and a stable 3.1 per cent unemployment rate, according to the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the positive performance was supported by continued improvements in employment and a decline in unemployment.

The labour force grew by 458,700 persons to 17.23 million persons compared to 16.77 million persons in Q1 2024, driven by a 3.0 per cent year-on-year (y-o-y) increase in employed persons to 16.70 million.

“The labour force participation rate rose to 70.7 per cent (Q1 2024: 70.5 per cent), while the number of unemployed persons declined to 526,300, with the unemployment rate remaining stable at 3.1 per cent,” he said in a statement today.

In addressing the underemployment situation, he noted that sustained employment growth in Q1 2025 led to a notable decline in underemployment indicators.

“The number of persons working less than 30 hours per week decreased by 11.1 per cent y-o-y to 242,700 persons.

“Time-related underemployment also registered a decline of 9.2 per cent, totalling 146,900 persons, with the rate of 1.5 per cent,” he said.

He also said Malaysia’s labour market in Q1 2025 was adapting to the growing challenges of Industry 4.0.

“To meet the rising need for digital expertise, the government has committed to an initiative of RM20 million to train 5,000 Malaysians in key tech sectors and strengthen Technical and Vocational Education and Training (TVET) programmes with internationally recognised certifications,” he added.