Malaysia’s labour market expands in Q1 2025

Malaysia’s labour demand saw a steady increase in Q1 2025, rising 1.4% year-on-year to reach 9.06 million jobs, up from 8.94 million a year earlier. The data, released by the Department of Statistics Malaysia (DOSM), highlighted the ongoing recovery of the country’s labour market amid strengthening domestic economic activity.

According to Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin, the growth reflects Malaysia’s improving economic fundamentals, which are expected to remain resilient thanks to robust domestic demand.

Of the total jobs recorded in Q1 2025, 97.9% were filled, with 8.87 million positions occupied – a 1.4% increase compared to the same quarter last year. The remaining 2.1% of 194,100 roles were vacant, representing a 1.2% year-on-year increase in job vacancies.

The services sector remained the largest contributor to employment, accounting for 52.8% of filled jobs (4.69 million). This was followed by manufacturing at 26.9% (2.38 million) and construction at 14.1% (1.25 million). All sectors reported year-on-year growth, with services leading at 1.8%, followed by manufacturing (1.5%) and construction (0.5%).

Within the manufacturing sector, the primary driver of job vacancies, the electrical, electronic, and optical products sub-sector alone accounted for 33,900 vacancies. This was followed by the petroleum, chemical, rubber and plastic products sub-sector with 20,200 openings.

Agriculture and construction also reported notable demand with 31,800 and 25,400 vacancies, respectively.

Across all sectors, semi-skilled roles remained the most in demand, comprising 62.5% of filled jobs (5.55 million). Skilled roles followed with 2.23 million jobs, while low-skilled roles accounted for 1.09 million.

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The trend extended to vacancies as well: semi-skilled jobs represented 56.3% of total vacancies (109,200), while skilled and low-skilled roles made up 24.4% (47,400) and 19.3% (37,500), respectively.

Dr Mohd Uzir noted that the sustained growth in skilled and semi-skilled job creation is likely to encourage more individuals to pursue higher education and specialised training. “This is essential in developing a future-ready workforce built on expertise and innovation,” he said.

A total of 33,200 new jobs were created in Q1 2025, marking a 3.4% increase from 32,100 jobs in the same period last year. The majority of these roles emerged in the skilled and semi-skilled categories, highlighting a shift toward more value-added employment opportunities.

The manufacturing sector remained a key engine of employment growth, registering a 1.1% year-on-year increase in employment. This aligns with the objectives of Malaysia’s New Industrial Master Plan 2030 (NIMP 2030), which aims to boost employment while enhancing the capabilities of the national workforce, reported News Straits Times.

As Malaysia’s labour market continues to evolve, HR leaders will have the opportunity to explore strategies for workforce development, talent attraction, and productivity enhancement at HRM Asia’s CHRO Series Malaysia, taking place on 15-17 July 2025 at Sofitel Kuala Lumpur Damansara. To find out more, click here.