PETALING JAYA: The unemployment rate in Malaysia has reduced to 3.1% in December 2024, which is the lowest in nearly a decade, according to the Department of Statistics Malaysia (DOSM).
Based on current data, the nation’s unemployment rate is at its lowest since May 2015, showing a decline in December last year to 544,300 individuals from 546,700 in November.
Malaysia’s labour force this year is anticipated to be “comparatively favourable”, as quoted and the employment is said to rise, said DoSM chief Datuk Seri Dr. Mohd Uzir Mahidin in a statement today.
“Key sectors such as manufacturing, particularly electrical and electronics and services will propel job creation,“ said the statement.
DoSM added that the number of employed individuals in December 2024 reached 16.78 million, an increase of 0.2% compared to November 2024.
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Regarding the Malaysian economic sector, employed individuals in the service sector steadily increased, mainly in wholesale and retail trade such as art and entertainment and recreation, accommodation and food and beverage services.
Meanwhile, the manufacturing and construction industry also registered positive growth in employment however the mining and quarrying sector employment decreased.
Selangor and Kedah recorded the lowest unemployment rate at 1.7% for the fourth quarter of 2024 while Melaka followed suit at 1.8% then Johor and Penang at 2.2%.
However, the labour force participation rate (LFPR) of nine states nationwide indicated an increase with Selangor at 76.4% followed by the Federal Territory of Kuala Lumpur at 74.9% and Penang (73.2%).
In December 2024, 432,800 unemployed individuals, actively unemployed or looking for work were recorded and 62.7% in the category were out of a job for less than three months whereas 5.8% have been unemployed for over a year and the percentage of those believing there were no available jobs rose by 0.8% to 111,500 individuals.
As for the age demographics, unemployed people aged 15 to 24 years decreased to 10.3% at 299,700 while thoise unemployed aged 15 to 40 years declined to 6.1% at 410,800.
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Overall, the nation’s LFPR in 2024 rose by 0.4 percentage points to 70.4% compared to 70% in 2023 while the unemployment rate dropped to 3.3% in 2024 while the unemployment rate decreased to 3.3% this year compared to 3.4% in 2023.
“Malaysia’s economy is seen to remain on a positive trajectory in 2024, driven by strong economic performance despite ongoing uncertainties in the external environment.
“In line with this performance, the country’s labour market position continued to show a healthier growth momentum throughout the year, steered by encouraging economic growth,” the statement added.
