Malaysia’s unemployment rate fell to 2.9% in Q4 2025, with female workforce participation reaching a record high of 56.6%, driven by government initiatives.
PUTRAJAYA: The Ministry of Human Resources (KESUMA) has attributed a record low unemployment rate and rising female workforce participation to its strategic labour market policies.
Official data shows the unemployment rate fell to 2.9% in the fourth quarter of 2025, while female labour force participation hit a historic high of 56.6%.
“This achievement is in line with the implementation of KESUMA’s strategic initiatives through TalentCorp,” the ministry stated.
It highlighted programmes supporting women’s participation, including return-to-work facilitation and talent mobility schemes.
The ministry also noted improvements in job quality, with skill-related underemployment falling to 35.3%.
It said this reflected efforts to strengthen Technical and Vocational Education and Training (TVET) and industry-focused skills programmes.
Social protection was enhanced through the 24-Hour Lindung Scheme and the Lindung Kerjaya Scheme.
These efforts were bolstered by the enforcement of the RM1,700 Minimum Wage Order, benefiting 4.4 million workers.
The accompanying Progressive Wage Policy has raised the national median wage to nearly RM3,000.
KESUMA said its comprehensive approach delivered a measurable and sustainable impact on the labour market.
