Malaysia Labour Force Hits 17.37 Million in July 2026 as Unemployment Stays at 3.0%

Malaysia’s labour force increased to 17.37 million in July 2026, while the unemployment rate remained at 3.0%, according to the latest figures from the Department of Statistics Malaysia (DOSM).

DOSM’s Labour Force Statistics, July 2026, released on 11 September 2026, showed that the labour force rose by 21,000 people, or 0.1%, to 17.37 million, compared with 17.34 million in June 2026.

The labour force participation rate (LFPR) remained unchanged at 70.9%.

For HR professionals and employers, the latest figures provide a current view of Malaysia’s labour market and workforce composition.

Image source: LABOUR FORCE STATISTICS, JULY 2026

Employment Increased to 16.85 Million

The number of employed persons also increased in July 2026.

DOSM reported that the number of employed persons grew by 18,500 people, or 0.1%, to 16.85 million, from 16.83 million in June 2026.

The employment-to-population ratio remained unchanged at 68.8%. DOSM noted that this ratio reflects the economy’s capacity to generate jobs.

For employers, the increase in employment provides an important reference when reviewing workforce requirements and recruitment plans.

Unemployment Rate Stays at 3.0%

The unemployment rate remained at 3.0% in July 2026, unchanged from the previous month.

At the same time, the number of unemployed persons increased by 2,500, or 0.5%, to 520,300. DOSM reported 517,800 unemployed persons in June 2026.

The unemployment rate therefore remained stable even though the number of unemployed persons increased slightly.

Services Remains the Main Driver of Employment

The Services sector continued to be the primary driver of total employment in July 2026.

According to DOSM, growth in the Services sector was largely contributed by:

Arts, entertainment and recreation
Accommodation and food & beverage service activities
Financial and insurance/takaful activities

Employment also expanded in Agriculture, Mining & quarrying, Manufacturing and Construction.

For HR teams, the data shows that employment growth was recorded across all the major sectors covered in the latest DOSM release.

Employees Continue to Make Up the Largest Share

Employees remained the largest category among employed persons in July 2026.

DOSM reported that employees accounted for 74.9% of total employed persons.

The number of employees increased by 7,600 people, or 0.1%, to 12.62 million, compared with 12.61 million in June 2026.

The number of own-account workers also increased by 8,700 people, or 0.3%, to 3.16 million, compared with 3.15 million in June 2026.

These figures give employers a clearer picture of the current structure of Malaysia’s workforce.

What the July 2026 Labour Force Data Means for HR

The latest DOSM figures show continued increases in both the labour force and employment in July 2026, while the unemployment rate remained at 3.0%.

For HR professionals, this data can be useful when reviewing hiring plans, workforce requirements and recruitment needs.

The increase in employment across Services, Agriculture, Mining & quarrying, Manufacturing and Construction also gives employers a broader view of where workforce activity is taking place.

When a company needs to add headcount, a clear hiring process starts with defining the position, responsibilities, required skills and hiring budget.

Employers can also review whether their salary ranges are in line with current market conditions when preparing a hiring plan.

Malaysia Labour Market in July 2026: Key Figures

Indicator	July 2026
Labour force	17.37 million
Labour force participation rate	70.9%
Employed persons	16.85 million
Employment-to-population ratio	68.8%
Unemployed persons	520,300
Unemployment rate	3.0%
Employees	12.62 million
Employees' share of employed persons	74.9%
Own-account workers	3.16 million

Source: Department of Statistics Malaysia (DOSM), Labour Force Statistics, July 2026.

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