Kathmandu. In the second quarter of 2026, Malaysia’s unemployment rate rose by a little to 3 percent. According to a report released by the Malaysian Bureau of Statistics, the unemployment rate increased marginally from 2. 9 percent in the previous quarter. According to the data, the number of unemployed people increased by 0.6 percent to 509,700 percent compared to the previous quarter. 

The Department noted that the increase in the number of unemployed people has been due to the continuous expansion of in the labor force. 

Malaysia’s total labour force increased by 17.23 to 0.3 million from 17.28 million. Similarly, the number of people employed increased by to 0.2 and 16.77 million. 

The labour force participation rate remained stable at 70.9.9 per cent compared to the previous quarter, according to the department’s statement.Forecasting in the coming months, the department expects Malaysia’s labour market to remain strong. The market is expected to be positive due to stable domestic economic situation, continuity of investment activities and demand for labour. 

However, the report noted that ongoing uncertainty in the global energy market, geopolitical development s and the situation in foreign trade could add challenges to the business costs and recruitment process.If such external pressures persist, it could affect the decision-making process of employers, the department said.