Malaysia’s unemployment rate declined to its lowest level in 10 years, driven by a growing number of employed individuals and an expanding labour force, according to official data released on Wednesday.

In April, the unemployment rate stood at 3.0%, the lowest since April 2015, according to the Department of Statistics Malaysia (DOSM). Economists typically view a 3% unemployment rate as an indication of full employment in the economy.

“The country’s labour force is anticipated to remain optimistic and expand in the coming months of 2025, bolstered by strong economic policies and stable domestic demand,” DOSM stated.

Despite ongoing global geopolitical tensions, Malaysia’s labour force is expected to stay resilient, supported by steady unemployment levels, a growing services sector and technology industry, along with rising investments in digitalisation and automation, according to the department.

In April, the number of unemployed individuals declined to 525,900 from 529,600 in March. At the same time, the labour force grew by 0.2% to 17.34 million, The Edge Malaysia reports.

Furthermore, the labour force participation rate, the share of employed individuals within the working-age population, increased by 0.1 percentage point to 70.8%.

The employee category, which makes up the bulk of Malaysia’s workforce, grew by 0.2% to 12.63 million individuals. Meanwhile, the number of own-account workers, those running their own businesses or farms, or working independently without hired employees, increased by 0.6% to 3.16 million.

In addition, by sector, the majority of employed individuals continued to be in the services industry. The Department of Statistics Malaysia (DOSM) highlighted an “increasing trend, particularly in wholesale and retail trade; accommodation and food and beverage services; and transportation and storage activities.”

Employment also rose in the manufacturing, construction, agriculture, and mining and quarrying sectors.

As for age groups, the youth unemployment rate, covering individuals aged 15 to 24 who are newly entering the workforce after completing their education, remained steady at 10.3%, representing approximately 298,300 people.