Malaysia's unemployment drops to 3.2% in 2024, labour market strongest since pandemic

The Sun

6 hours ago

PUTRAJAYA: Malaysia's labour market has achieved its strongest performance since the pandemic, with unemployment falling to 3.2 per cent in 2024, according to the Department of Statistics Malaysia (DOSM).
The latest data shows key improvements in employment, youth joblessness, and workforce participation, with stability expected to continue into 2025.
The unemployment rate dipped below the pre-pandemic level of 3.3 per cent recorded in 2019, with the number of unemployed persons dropping to 534,100.
Youth unemployment, a persistent concern, declined to 10.3 per cent, with 284,700 young jobseekers still without work.
The labour force expanded by 3.3 per cent to 16.90 million, while the labour force participation rate (LFPR) hit a record high of 70.6 per cent.
Employment also grew by 3.5 per cent to 16.37 million, reflecting stronger job creation.
'Accordingly, the employment-to-population ratio, which indicates the ability of an economy to create employment, also increased by 0.7 percentage points to 68.4 per cent from 67.7 per cent in 2023,' DOSM said.
Sector-wise, services remained dominant at 65.6 per cent of total employment, followed by manufacturing (16.3 per cent) and agriculture (9.0 per cent).
Underemployment improved, with fewer workers facing insufficient hours, dropping to 212,500 from 226,300 in 2023.
Regionally, Putrajaya recorded the lowest unemployment rate (1.1 per cent) and highest LFPR (78.7 per cent).
Female workforce participation exceeded the national average in five states, led by Putrajaya (79.4 per cent).
Despite progress, 7.02 million Malaysians remain outside the labour force, primarily due to household responsibilities (43.1 per cent) or education (41.3 per cent).
DOSM expects continued resilience in 2025, supported by economic growth and ASEAN-driven initiatives.