Malaysia’s labor market outlook stays positive in 2025, continuing strong performance in Q4 2024: DOSM

The Department of Statistics Malaysia (DOSM) recently published its insights into the labour market situation in the fourth quarter of 2024. The report highlighted that there was an increase in total job positions by 1.3% to reach 9.05 million, with an impressive job-filling rate of 97.9%, translating to 8.86 million positions being occupied.

During this period, the country’s economy experienced significant growth and strengthening, with a recorded figure of 17.34 million individuals in the labor force. The productivity per employment was reported at RM25,647, showcasing the productivity value per employee during this quarter. The year-on-year comparison revealed a 2.5% increase in the labor force, while the growth on a quarter-on-quarter basis stood at 0.4%.

In a separate study focusing on Malaysia’s labor productivity, it was discovered that the economy expanded by 5% during the quarter, equating to a value added of RM430,686 million. Furthermore, the labor productivity per hour worked demonstrated a positive shift, increasing by 1.4% and resulting in a value added per hour worked at RM44.2. This favorable outcome was attributed to a substantial 3.5% uptick in total hours worked, accounting for 9.7 billion hours.

Analyzing the data for the entire year of 2024 revealed that labor productivity per hour worked exhibited significant growth, with a substantial 2.1% increase from the previous year’s figures. Specifically, the value added per hour worked in 2024 was recorded at RM42.8, a notable improvement compared to RM41.9 in the preceding year.

The report further pointed out that the labor productivity per employment saw an increase of 2.2% in the fourth quarter, translating to a value added per employment standing at RM25,647 per person. Additionally, there was a positive year-on-year growth in the total number of persons employed, at 2.7%, with each person contributing RM99,137.

The labor force participation rate in Malaysia climbed to 70.6% during the quarter, driven by a significant increase in the number of employed individuals, totaling 16.79 million people.

In terms of unemployment, DOSM reported that the unemployment rate remained steady at 3.2% in the fourth quarter of 2024, with a slight decrease in the number of unemployed persons to 546,900. Notably, there was a decrease in the number of individuals working less than 30 hours per week by 2.5%, coupled with a 3.6% decline in time-related unemployment.

Looking at labor demand, the total job positions surged by 1.3% to 9.05 million positions, maintaining a job-filling rate of 97.9%. This indicated positive growth compared to the same period in 2023. Moreover, the job vacancy rates remained stable at 2.1%, with a slight uptick in vacancies recorded at 193,600.

As Malaysia navigates into 2025, it is anticipated that the labor market will remain robust and continue to show promising growth trends. Key sectors such as manufacturing, especially in electrical and electronics, along with the services sector, are expected to play pivotal roles in driving job creation and economic progress.