Malaysia’s job market poised for stability in 2025
- Josephine Tan
- Topics: Home Page - News, Malaysia, News
Malaysia’s labour market is projected to maintain its stability throughout 2025, fuelled by strong domestic demand, government job creation initiatives, and a resurgence in tourism, according to a recent analysis by Hong Leong Investment Bank (HLIB Research).
HLIB Research highlighted the ongoing realization of approved investments as a key driver of job growth, further boosting household spending. Data from the Ministry of Investment, Trade and Industry (MITI) revealed that 98.4% of investment projects approved between 2021 and March 2024 are either completed, in progress, or in the planning stages, creating a foundation for future employment opportunities across various sectors.
Recent labour market data from November further reinforces this positive trend. Unemployment figures demonstrated a faster decline both month-on-month and year-on-year, holding the unemployment rate at a post-pandemic low of 3.2%.
A closer look at unemployment duration revealed a positive shift: the proportion of individuals unemployed for less than three months has increased, while longer-term unemployment (three to less than six months and six to less than 12 months) remained stable. Notably, the share of those unemployed for more than a year has decreased, suggesting a more efficient absorption of jobseekers into the workforce.
The number of actively job-seeing individuals also declined to 436,200.
Employment continued to expand steadily, supported by gains in all major sectors, including services, manufacturing, construction, agriculture, and mining. Within the services sector, job growth was particularly evident in wholesale and retail trade, transportation and storage, and information and communication.
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HLIB Research noted that employment status trends also reflected the broader market’s stability, with the number of employees rising steadily and account workers gaining slight momentum, reported New Straits Times.
