Malaysia's Jobless Rate Holds at 2.9% as Unemployed Count Rises to 513,200

Malaysia's unemployment rate stood at 2.9 per cent in September 2026, unchanged from the rate in the preceding month, while the number of unemployed rose slightly to 513,200 from 511,600 in August. Employment grew too, with employed persons up 0.1 per cent (+15.1 thousand) to 16.89 million. On a separate quarterly measure covering July to September, unemployed persons numbered 513.7 thousand. For Metaintro readers in Malaysia, this guide splits the monthly and quarterly numbers, shows which states, sectors and skill levels have the most openings, and explains the PERKESO job-loss support that changed from 1 October.

What Did the Department of Statistics Malaysia Report for September?

The Department of Statistics Malaysia (DOSM) published its September figures on 11 November 2026, with the next monthly release due on 11 December 2026. The labour force grew 0.1 per cent (+16.7 thousand) to 17.40 million in September, and the labour force participation rate remained unchanged at 71.0 per cent.

The monthly unemployed count increased by 1.6 thousand (+0.3%) over the month. That small rise came in a month when more people joined the workforce, and the employment-to-population ratio remained unchanged at 68.9 per cent.

The employees category accounted for 74.9 per cent of all employed persons in September, rising by 0.1 per cent to 12.65 million from 12.63 million in August 2026, and own-account workers rose marginally by 0.1 per cent (+4.7 thousand) to 3.17 million.

Outside the workforce, the count edged down by 0.03 per cent to 7.10 million from 7.11 million in August 2026. Housework or family responsibilities made up 43.7 per cent of that group and schooling or training made up 40.4 per cent.

How Do the Third-Quarter Figures Differ From the Monthly Ones?

The quarterly survey covers July to September as one period, so its numbers do not match the September month. In the third quarter of 2026, the labour force grew 0.3 per cent, adding 58.0 thousand to reach 17.33 million, with the participation rate at 71.0 per cent. Employed persons in the quarter increased by 53.9 thousand (+0.3%) to 16.82 million.

The quarterly jobless rate held steady at 3.0 per cent, unchanged from the previous quarter, while the quarterly unemployed count increased by 0.8 per cent from 509.7 thousand in the second quarter.

In the quarter, the male participation rate increased to 83.4 per cent from 83.3 per cent, while the female participation rate remained unchanged at 57.0 per cent. For the quarter, employees accounted for 76.1 per cent of total employed persons. The quarterly employee count rose 0.2 per cent to 12.81 million, and own-account workers increased 0.5 per cent to 2.96 million from 2.94 million.

The number of employed persons continued its upward trend in the third quarter of 2026, according to the DOSM third-quarter release.

How Long Are People Staying Unemployed?

In the third quarter, 79.7 per cent of the unemployed, or 409,300 people, were actively unemployed, ready to work and actively seeking jobs, and the remaining 20.3 per cent were inactively unemployed.

Of the actively unemployed in the quarter, 67.3 per cent had been jobless for less than three months, while 3.1 per cent were long-term unemployed, having been out of work for more than a year.

Which States Have the Lowest Unemployment?

In the third quarter, nine states and one region recorded unemployment rates below the national rate. Putrajaya recorded the lowest unemployment rate at 1.3 per cent in the third quarter of 2026, followed by Melaka and Selangor at 2.0 per cent each and Pahang at 2.1 per cent.

Three states and two regions recorded participation rates above the national rate of 71.0 per cent in the quarter. Wilayah Persekutuan Putrajaya registered the highest participation rate at 79.5 per cent, followed by Selangor (78.2%), then Kuala Lumpur (76.3%), Pulau Pinang (71.7%) and Johor (71.5%). Pulau Pinang is also where a Chinese chip materials maker plans more than a thousand hires.

Where Are Employers Hiring, by Sector?

A second DOSM release, the Employment Statistics for the third quarter of 2026, was published on 12 November 2026 and comes from a survey of registered private sector businesses. It counted 9.31 million jobs during this quarter, of which 9.11 million jobs were filled and 196.7 thousand were vacant with a rate of 2.1 per cent.

Job vacancies were predominantly in the Manufacturing sector with a share of 59.0 per cent, or 116.1 thousand vacancies. Agriculture held 15.6 per cent (30.7 thousand) of vacancies, Construction 13.3 per cent (26.2 thousand) and Services 11.9 per cent (23.2 thousand).

By total jobs, the Services sector remained the largest contributor of jobs, at 52.4 per cent (4.88 million), while Manufacturing was the second largest contributor, with 27.6 per cent (2.56 million). Construction made up 13.7 per cent (1.28 million) of jobs and Agriculture 5.5 per cent (508.8 thousand).

Of the 31.3 thousand jobs created in the quarter, Services made up 44.7 per cent (14.0 thousand), followed by Manufacturing at 39.9 per cent (12.5 thousand). Jobs created edged down by 3.2 per cent on a yearly basis, while filled jobs expanded by 1.6 per cent from the third quarter of 2025.

Which Skill Levels Have the Most Openings?

The semi-skilled group stood firm as the largest contributor to the total jobs with 5.77 million and had 109.2 thousand vacancies, with jobs created in the group up 0.3 per cent year-on-year to 20.8 thousand.

The skilled category recorded a 2.5 per cent year-on-year increase to record 2.36 million jobs, with 49.5 thousand vacancies, though new skilled jobs declined from 8.2 thousand to 7.9 thousand over the year.

Low-skilled jobs edged up by 2.4 per cent to 1.17 million, and that group had 38.1 thousand jobs left vacant, representing a vacancy rate of 3.2 per cent, but only 2.5 thousand new jobs created, a year-on-year decline of 24.5 per cent.

Semi-skilled and low-skilled job seekers weighing these openings can set them against Malaysia's coming wage floor and the higher rate proposed for graduates and semi-skilled workers.

Is the Job Market Better or Worse Than a Year Ago?

On the quarterly measure, the labour force edged up by 197.4 thousand (+1.2%) year-on-year, employment rose by 1.2 per cent (+197.3 thousand) against 16.62 million in the third quarter of 2025, and the unemployment rate remained at 3.0 per cent compared with the third quarter of 2025.

Be careful with older headlines. The newest release gives the third quarter of 2025 as 513.6 thousand unemployed, while the figure published a year ago was 519,900 for the third quarter of 2025. Compare years only with the numbers inside the newest DOSM release.

What Do This Year's Job-Loss Figures Show?

Even with a low jobless rate, Malaysia recorded 68,177 job losses between January and Sept 16, an increase of 15,196 workers or about 29 per cent from the same period last year, with manufacturing and wholesale and retail trade among the sectors under pressure.

Economy Minister Akmal Nasrullah Mohd Nasir said the increase warranted close monitoring, although overall labour-market indicators remained resilient. From January to Sept 11, 143,653 workers had been successfully placed in new jobs through the Employment Insurance System and the MYFutureJobs portal, he said.

PERKESO deputy chief executive (Operations) Azirruan Arifin said 117,733 jobseekers had secured employment across various sectors between January and Aug 14 through its employment support services. The two counts cover different dates, so they should not be added together.

DOSM said efforts to strengthen the labour market must continue in tandem with technological developments and economic transformation.

These include expanding AI and automation training, helping to redeploy workers affected by technological change, and strengthening early monitoring of at-risk sectors to ensure the local workforce remains skilled, productive and competitive, according to the Bernama report on the DOSM statement.

What Help Can You Get From PERKESO After Losing a Job?

The Social Security Organisation (PERKESO) runs the Employment Insurance System, which offers financial assistance, career guidance and support in securing new employment. Its services include career counselling, job searches and matching, registration and placement through MYFutureJobs, open interviews, career fairs and resume preparation guidance.

Several payments rose for contributors who lose their job from 1 October 2026 through a job loss PERKESO covers, such as retrenchment or a company closing down. Resigning voluntarily or reaching the end of a fixed-term contract does not count, although some resignations do, such as one over sexual harassment at work. Amendments to the Employment Insurance System Act 2017 (Act 800) took effect on 1 October and cover more than seven million contributors, and the new rates apply to job loss from 1 October 2026 only. Contributors can receive total assistance and protection of up to RM25,000 (about $6,143) each from Oct 1, under changes announced by Human Resources Minister R. Ramanan.

Here is what changed for job losses from 1 October 2026.

• The Early Re-employment Allowance rises from 25% to 50% of your unpaid Job Search Allowance.
• The training fee cap rises from up to RM4,000 to up to RM7,000 (about $983 to about $1,720).
• The training allowance moves from RM10 to RM20 a day to RM30 a day (about $2.46 to $4.91, now about $7.37 a day).
• A new Mobility Assistance Allowance of RM1,000 one-off (about $246) is for contributors who are receiving EIS benefits and then find work more than 100km from where they live.

The monthly Job Search Allowance itself is unchanged and is paid for three to six months, depending on how many months of contributions you've paid, and it starts at 80% of your assumed monthly wage and falls to 30% by month five. The extra money is only paid once you find work, sign up for training or move for a job, and workers retrenched in September are still on the old rates. You must apply within 60 days of losing your job, through the LINDUNG KERJAYA portal or a PERKESO counter, and register with MYFutureJobs.

Two details matter when you claim. The allowance is worked out from an assumed monthly wage, and contributions stop at a wage of RM6,000 a month (about $1,474), so higher earners are paid on that cap. To claim the early return payment, you need your offer letter and proof that you've reported for duty, such as a punch card record.

What This Means for Job Seekers in Malaysia, and What Should You Do Next?

The flat monthly rate hides two different markets. Manufacturing holds most of the private sector vacancies, yet manufacturing is also among the sectors that came under pressure as job losses rose this year. The same industry is both cutting and hiring, so a factory layoff does not have to mean leaving the sector.

The bigger lesson is speed. Most active job seekers in the third quarter had been out of work for only a short time, and under the new PERKESO rules going back to work early now pays double as a lump sum from your unpaid Job Search Allowance.

• Claim inside the window. After a covered job loss, apply inside the claim window and register with MYFutureJobs.
• Check you are covered. An EIS or SIP deduction on your payslip means you are covered.
• Use the training money. The higher fee cap applies when your Employment Services Officer refers you to a skills course.
• Look where unemployment is lowest. Putrajaya, Melaka, Selangor and Pahang had the lowest jobless rates by state and region in the quarter, and the mobility allowance applies if the new job is more than 100km from where you live.
• Rework your resume for factory roles. Put the technical and shop-floor skills for your manufacturing resume at the top, matched to the vacancy.

Lacey Kaelani, Metaintro's CEO, puts it this way: A steady jobless rate is not the same as an easy search. Go where the vacancies are, claim every ringgit of support you are owed, and treat the first three months after a job loss as the window that matters most.

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People Also Asked

Q: What is Malaysia's latest monthly unemployment rate?

A: The rate stood at 2.9 per cent in September 2026, the same as August, with 513,200 people unemployed.

Q: Which state or territory in Malaysia has the lowest unemployment rate?

A: In the third quarter of 2026, Putrajaya recorded the lowest unemployment rate at 1.3 per cent, ahead of Melaka and Selangor.

Q: Which sector has the most job vacancies in Malaysia?

A: Manufacturing, which held 116.1 thousand of the vacancies in the third quarter of 2026 among registered private sector businesses.

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