Malaysia’s unemployment rate fell to a new 11-year low of 2.9% in November 2025, with the number of unemployed standing at 518,400, based on the Statistics of the Labour Force Malaysia for November 2025 released by the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin noted that this was the first time the unemployment rate had dropped below 3% since November 2014.

He attributed the significant decline to ongoing improvements in the labour market, driven by stable economic conditions and sustained labour demand across major sectors.

“The labour force expanded by 0.2% to reach 17.61 million persons in November 2025 compared to 17.58 million in October 2025, while labour force participation rate during the month was unchanged at 70.9%,” he said in a statement.

Mohd Uzir said Malaysia’s labour market is projected to stay stable and record continued positive growth in the months ahead, bolstered by new employment opportunities in strategic sectors, sustained reskilling and upskilling efforts, and more even employment expansion between urban and rural regions, The Malaysian Reserve reports.

“Therefore, Malaysia’s labour market is forecast to remain competitive, inclusive and resilient in addressing global challenges, while leveraging opportunities from digital transformation and the green agenda,” he went on to add.

Mohd Uzir said employment continued to expand, with the number of employed persons rising by 0.2% to 17.09 million from 17.06 million previously, while the number of unemployed edged down to 518,400 from 518,900 a month earlier.

He added that employees made up 74.8% of total employment, increasing to 12.78 million from 12.76 million in October 2025, while own-account workers also grew slightly to 3.26 million compared with 3.25 million in the previous month.

Furthermore, he said job creation continued to be widespread, driven mainly by consistent growth in the services sector, especially in human health and social work, wholesale and retail trade, accommodation, and food and beverage (F&B) services, while positive employment growth was also seen in agriculture, manufacturing, construction, as well as the mining and quarrying sectors.

In addition, Mohd Uzir said the number of individuals working fewer than 30 hours a week increased to 237,000 in November 2025 from 233,200 in October, while time-related underemployment also rose to 129,900 from 126,400 in the previous month.

“As a result, the time-related underemployment rate rose to 0.8% in November 2025 compared to 0.7% in October 2025,” he concluded.