KUALA LUMPUR – Malaysia’s labour force participation rate (LFPR) rose to 70.4% in 2024, up from 70% the previous year, according to Labour Force Statistics, Malaysia, December and fourth quarter 2024.
Chief Statistician of the Department of Statistics Malaysia (DOSM) Datuk Seri Dr Mohd Uzir Mahidin stated that during the same period, the unemployment rate declined to 3.3% in 2024, compared to 3.4% in the previous year.
“The Malaysian economy is seen to remain on a positive growth trajectory in 2024, driven by strong economic performance despite ongoing external uncertainties.
“In line with this performance, the country’s labour market position continues to show good growth momentum throughout the year, driven by encouraging economic growth,” he said, as quoted by Bernama.
Mohd Uzir noted that the Malaysian labour market performed well over the past year, with unemployment remaining low while employment saw a steady increase.
He attributed the positive labour market performance to continued labour demand across various sectors, particularly in the private sector, which experienced a rise in job opportunities.
“The outlook for the Malaysian labour force this year is encouraging, with employment expected to continue increasing consistently, while unemployment is projected to remain low.
“Key sectors such as manufacturing, especially electrical and electronics, as well as the services sector, will drive job creation,” he said.
On the labour market’s performance in the fourth quarter of 2024, he highlighted that the workforce showed an upward trend, increasing by 0.4% to 17.34 million people compared to 17.26 million in the previous quarter.
Similarly, the number of employed individuals rose by 0.5% to 16.79 million, up from 16.72 million in the third quarter of 2024.
The number of unemployed fell by 0.2% to 546,900, down from 547,900 in the previous quarter, with the unemployment rate remaining at 3.2%.
Regarding unemployment rates and LFPR by state, Mohd Uzir reported that Selangor and Kedah recorded the lowest unemployment rates at 1.7% in the fourth quarter of 2024, followed by Melaka (1.8%), as well as Johor and Penang at 2.2% each.
Nine states saw an increase in the LFPR, reflecting greater labour market participation, with Selangor recording the highest LFPR at 76.4%, followed by Kuala Lumpur (74.9%) and Penang (73.2%).
Lowest unemployment rate in 116 months
Meanwhile, he noted that in December 2024, the workforce remained on an upward trend, increasing by 0.1% to 17.32 million compared to 17.29 million in November 2024.
The unemployment rate for that month reached its lowest level in 116 months at 3.1%, with 544,300 unemployed individuals recorded, compared to 3.2% in November 2024. The last time an unemployment rate of 3.1% was recorded was in May 2015.
“By the end of 2024, the Malaysian economy showed resilience and strong growth.
“Therefore, the labour market also performed well, with the unemployment rate continuing to decline in December 2024. Employment recorded stable development, and the number of unemployed continued to decrease,” he said.
On the employment situation in December 2024, Mohd Uzir said the category of workers, which accounted for 74.9% of the total working population, increased by 0.1% to 12.56 million compared to 12.54 million in the previous month.
Similarly, the self-employed population saw an upward trend, rising by 0.4% to 3.12 million from 3.11 million in November 2024.
“In terms of the economic sector, the number of people employed in the service sector increased steadily, particularly in wholesale and retail trade activities; arts, entertainment and recreation; and accommodation and food and beverage services.
“At the same time, the manufacturing, construction and agriculture sectors also recorded positive employment growth, while employment in the mining and quarrying sectors declined during the month,” he said. – February 10, 2025