KUALA LUMPUR - Malaysia’s labour market remained resilient in the first quarter of 2026, supported by stable economic conditions and continued expansion in employment activity.

According to the latest labour market review released by the Department of Statistics Malaysia, the labour force participation rate (LPFR) rose to 70.9 per cent during the quarter, as reported by New Straits Times.

The figure means around 71 out of every 100 working-age Malaysians were actively participating in the labour market.

Malaysia’s unemployment rate also improved, easing to 2.9 per cent compared with the same period last year.

The report showed the country’s labour force expanded by 0.9 per cent year-on-year to 17.23 million people, up from 17.09 million recorded in the first quarter of 2025.

At the same time, the number of unemployed persons declined by 3.1 per cent to 506,500 from 522,500 previously.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said Malaysia’s economy continued demonstrating resilience despite ongoing global uncertainties.

He said strong domestic demand and diversified economic activities had helped support the labour market.

The report also indicated improvements in several underemployment indicators during the quarter.

The number of individuals working fewer than 30 hours weekly declined by 4.1 per cent year-on-year to 231,600 people.

Time-related underemployment fell more sharply by 15 per cent to 123,300 persons while skills-related underemployment declined by 0.9 per cent to 1.93 million persons.

The corresponding rate eased to 35.2 per cent from 35.7 per cent a year earlier.

On labour demand, the Statistics Department reported that the total number of jobs rose by 1.8 per cent year-on-year to 9.23 million in the first quarter, with filled jobs also increasing by 1.8 per cent to 9.03 million positions, while job vacancies edged up by 0.4 per cent to 194,800 vacancies.

The vacancy rate stood at 2.1 per cent during the quarter, reflecting sustained labour demand alongside economic growth.

Malaysia’s labour productivity also recorded further improvement, with value added per employment rising 4.3 per cent year-on-year to RM26,171 per person and value added per hour worked increasing 4.8 per cent to RM45.50 per hour.

Total hours worked meanwhile rose marginally by 0.5 per cent to 9.63 billion hours.

Mohd Uzir said the labour market continues to remain supported by stable economic fundamentals despite challenges stemming from geopolitical tensions, supply chain disruptions and rising living costs linked to higher global food and energy prices.