The Department of Statistics Malaysia (DOSM) publishes the unemployment rate every month from the Labour Force Survey. The latest figures cover August 2026 and were released on 9 October 2026.
Unemployment in Malaysia at a glance
- Latest rate: 2.9% in August 2026, down 0.1 percentage point from July.
- Unemployed: 511,600 people, 8,700 fewer than in July and 7,400 fewer than a year earlier.
- Young people: the rate for those aged 15 to 24 was 10.1%, 7.2 percentage points above the overall rate.
- By state: Sabah had the highest rate in the second quarter of 2026, at 5.6%, and Putrajaya the lowest, at 1.3%.
- Next update: September 2026 figures are due on 11 November 2026.
What is the unemployment rate in Malaysia now?
In August 2026 the unemployment rate was 2.9%, with 511,600 people unemployed out of a labour force of 17,386,000. The seasonally adjusted rate was also 2.9%.
| Measure | Aug 2026 | Jul 2026 | Aug 2025 |
|---|---|---|---|
| Unemployment rate | 2.9% | 3.0% | 3.0% |
| Unemployed persons | 511,600 | 520,300 | 519,000 |
| Labour force | 17,386,000 | 17,365,900 | 17,203,500 |
| Employed persons | 16,874,400 | 16,845,600 | 16,684,500 |
| Labour force participation rate | 71.0% | 70.9% | 70.8% |
- Against July 2026: the rate fell from 3.0% and the number unemployed fell by 8,700.
- Against August 2025: the rate was 3.0% a year earlier, with 519,000 unemployed.
- Employment: 16,874,400 people were employed, and the labour force participation rate was 71.0%.
DOSM's headline figures are not seasonally adjusted. Counts are in thousands in DOSM's tables and are shown here rounded to the nearest hundred.
Actively and inactively unemployed
DOSM counts two groups as unemployed.
- Actively unemployed: available for work and looking for a job in the reference week. In August 2026 there were 405,100, or 79.2% of the unemployed.
- Inactively unemployed: not looking because they believe no work is available or that they are not qualified, or waiting for the result of an application. There were 106,500, or 20.8%.
- Duration: 64.2% of the actively unemployed had been looking for less than three months, and 5.0% for more than a year.
The annual series since 1982
DOSM's annual series starts in 1982. The chart marks the highest year and the rates in the three later downturns.
- 1986: the highest annual rate in the series, 7.4%, during the mid-1980s recession. It was 7.3% in 1987 and 7.2% in 1988.
- 1997 and 1998: 2.4% in 1997 is the lowest annual rate. It rose to 3.2% in 1998, during the Asian financial crisis.
- 2009: 3.7% during the global financial crisis.
- 2020 and 2021: 4.5% and 4.6% during COVID-19. The highest month was May 2020, at 5.3%, with 826,100 unemployed.
The August 2026 rate of 2.9% is 4.5 percentage points below the 1986 peak.
| Year | Unemployment rate | Unemployed | Labour force | Participation rate |
|---|---|---|---|---|
| 2025 | 3.0% | 507,200 | 17,088,000 | 70.8% |
| 2024 | 3.2% | 534,100 | 16,903,500 | 70.6% |
| 2023 | 3.4% | 553,400 | 16,366,800 | 70.0% |
| 2022 | 3.9% | 614,500 | 15,769,700 | 69.3% |
| 2021 | 4.6% | 707,600 | 15,532,800 | 68.6% |
| 2020 | 4.5% | 686,600 | 15,406,000 | 68.4% |
| 2019 | 3.3% | 508,200 | 15,581,600 | 68.7% |
| 2018 | 3.3% | 504,300 | 15,280,300 | 68.3% |
| 2017 | 3.4% | 503,300 | 14,980,100 | 68.0% |
| 2016 | 3.4% | 504,100 | 14,667,800 | 67.7% |
The rate has fallen every year since 2021, from 4.6% to 3.0% in 2025. Over the same period the labour force grew from 15,532,800 to 17,088,000.
Unemployment by state
| State | Rate, Q2 2026 | Unemployed, Q2 2026 | Rate, 2025 |
|---|---|---|---|
| Sabah | 5.6% | 106,600 | 7.2% |
| W.P. Labuan | 4.8% | 2,300 | 6.3% |
| Kelantan | 4.1% | 30,700 | 3.5% |
| W.P. Kuala Lumpur | 3.5% | 41,800 | 2.6% |
| Perak | 3.3% | 40,800 | 3.5% |
| Sarawak | 3.3% | 41,500 | 3.2% |
| Perlis | 3.2% | 4,400 | 3.9% |
| Terengganu | 2.9% | 14,600 | 2.8% |
| Pulau Pinang | 2.6% | 25,100 | 1.9% |
| Kedah | 2.5% | 24,700 | 2.5% |
| Negeri Sembilan | 2.4% | 14,100 | 2.8% |
| Johor | 2.3% | 51,300 | 2.3% |
| Selangor | 2.1% | 85,200 | 2.0% |
| Melaka | 2.0% | 10,300 | 1.6% |
| Pahang | 2.0% | 15,400 | 1.8% |
| W.P. Putrajaya | 1.3% | 800 | 1.1% |
| Malaysia | 3.0% | 509,700 | 3.0% |
Sabah's rate was 5.6% in the second quarter of 2026, and 106,600 people there were unemployed, more than in any other state. Its 2025 average was 7.2%.
- Above the national rate: Sabah, Labuan (4.8%), Kelantan (4.1%), Kuala Lumpur (3.5%), Perak and Sarawak (3.3%) and Perlis (3.2%).
- Lowest: Putrajaya (1.3%), Melaka and Pahang (2.0%) and Selangor (2.1%).
- The gap: 4.3 percentage points between Sabah and Putrajaya.
Unemployment by age
| Age | Unemployment rate, Q2 2026 |
|---|---|
| 15 to 24 | 10.0% |
| 25 to 34 | 2.6% |
| 35 to 44 | 0.8% |
| 45 to 54 | 1.1% |
| 55 to 64 | 1.3% |
| Youth | Aug 2026 | Aug 2025 | 2025 average | May 2020 |
|---|---|---|---|---|
| Aged 15 to 24 | 10.1% | 10.2% | 9.6% | 14.2% |
| Aged 15 to 30 | 6.3% | 6.2% | 6.1% | 10.0% |
Young people have the highest rates. In August 2026 the rate was 10.1% for those aged 15 to 24 and 6.3% for those aged 15 to 30.
- Ages 25 to 34: 2.6% in the second quarter of 2026.
- Ages 35 to 44: 0.8%, the lowest of the age groups.
- Youth count: 291,300 people aged 15 to 24 were unemployed in August 2026, more than half of all the unemployed.
- COVID-19 peak: 14.2% for ages 15 to 24 in May 2020.
Unemployment by sex
In 2025 the rate was 2.9% for men and 3.0% for women. There were 315,600 unemployed men and 191,600 unemployed women.
The participation rates differ more than the unemployment rates: 83.3% of men aged 15 to 64 were in the labour force, against 56.6% of women.
Graduate unemployment
DOSM's Graduates Statistics 2024 put the graduate unemployment rate at 3.2%, down from 3.4% in 2023. There were 165,900 unemployed graduates.
- Degree holders: 91,500 unemployed.
- Diploma holders: 74,400 unemployed.
- Next edition: Graduates Statistics 2025 is due on 5 November 2026.
Underemployment
DOSM publishes two measures of people who have a job but would use more of their time or skills.
| Age | Time-related | Skill-related | Skill-related, persons |
|---|---|---|---|
| All ages | 0.7% | 35.2% | 1,948,200 |
| 15 to 24 | 1.9% | 74.3% | 476,300 |
| 25 to 34 | 0.4% | 40.7% | 751,100 |
| 35 to 44 | 0.4% | 25.8% | 464,700 |
| 45 and over | 0.8% | 20.5% | 256,200 |
- Time-related: 0.7% of employed persons worked under 30 hours a week and wanted more work in the second quarter of 2026.
- Skill-related: 35.2% of employed people with tertiary education worked in semi-skilled or low-skilled jobs, 1,948,200 people.
- Young graduates: the skill-related rate was 74.3% for those aged 15 to 24 and 40.7% for those aged 25 to 34.
How DOSM measures unemployment
The Labour Force Survey is a monthly household survey that follows ILO guidelines.
- Who is covered: people aged 15 to 64 in private living quarters. Hostels, hospitals, prisons and construction sites are left out.
- Employed: worked at least one hour in the reference week for pay, profit or family gain.
- Unemployed: did not work in the reference week, and was either looking for work or not looking for one of the reasons above.
- Rate: the unemployed as a share of the labour force, which is the employed plus the unemployed.
- Revisions: DOSM is revising the 2020 to 2025 monthly figures in stages to new population estimates, so older months can change.
Release calendar
- 11 November 2026: Labour Force Statistics, September 2026, and the Labour Force Survey Report for the third quarter of 2026.
- 5 November 2026: Graduates Statistics 2025.
- 11 December 2026: Labour Force Statistics, October 2026.
Questions
What is the unemployment rate in Malaysia?
It was 2.9% in August 2026, according to DOSM's Labour Force Statistics released on 9 October 2026. The seasonally adjusted rate was also 2.9%.
How many people are unemployed in Malaysia?
DOSM counted 511,600 unemployed people in August 2026, out of a labour force of 17,386,000. Of these, 405,100 were looking for work and 106,500 were inactively unemployed.
What was the highest unemployment rate in Malaysia?
The highest annual rate since 1982 was 7.4% in 1986. The highest month in the series from 2010 was May 2020, at 5.3%, during COVID-19.
Which state has the highest unemployment?
Sabah, at 5.6% in the second quarter of 2026, followed by Labuan at 4.8% and Kelantan at 4.1%. Putrajaya had the lowest rate, 1.3%.
What is the youth unemployment rate in Malaysia?
10.1% for people aged 15 to 24 and 6.3% for those aged 15 to 30 in August 2026. The 2025 averages were 9.6% and 6.1%.
When is the next unemployment figure released?
DOSM's calendar lists Labour Force Statistics for September 2026 on 11 November 2026, the same day as the report for the third quarter.
Related guides
Sources
DOSM Labour Force Statistics August 2026, Labour Force Survey Report Q2 2026 and 2025, Graduates Statistics 2024, and OpenDOSM open data
- DOSM, Labour Force Statistics, August 2026 Released 9 October 2026. Headline rate, counts, Table A, youth rates and the unemployed by type.
- DOSM, Labour Force Survey Report, Second Quarter 2026 Released 11 August 2026. Rates by state and age, underemployment.
- DOSM, Labour Force Survey 2025 Released 26 June 2026. Annual rates, youth, sex and underemployment for 2025.
- DOSM, Graduates Statistics 2024 Released 31 October 2025. Graduate unemployment rate.
- OpenDOSM data catalogue: lfs_month, lfs_month_sa, lfs_qtr, lfs_year, lfs_qtr_state, lfs_year_state, lfs_month_youth, lfs_qtr_tru_age, lfs_qtr_sru_age Monthly series from January 2010, annual series from 1982.
- DOSM, Advance Release Calendar, November 2026 Release dates for September 2026 and the third quarter.