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Malaysia's unemployment rate holds at 2.9% in September; third-quarter rate steady at 3.0%

Published Data as of MalaysiaMacro & households
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Key points

Implications for lenders

With unemployment at 2.9% and employment still rising, income-based underwriting assumptions for salaried borrowers need not change much. Because the number of unemployed rose to 513,200, lenders may still monitor early arrears in sectors with job losses and keep checks on irregular-income borrowers.

Implications

ExecutivesSteady employment supports demand for consumer and payroll-linked credit, but the small rise in the number of unemployed is worth tracking in coming months.
InvestorsA stable labour market lowers near-term household credit risk in Malaysia relative to the Philippines.
OperatorsLenders can keep income-stability assumptions in scorecards broadly unchanged, while watching sector-level job losses in manufacturing and trade.

Facts

Monthly: the Department of Statistics Malaysia (DOSM) said on 11 November 2026 that the unemployment rate was 2.9% in September, unchanged from August; 3.0% in September 2025. 1 The number of unemployed persons was 513,200, up from 511,600 in August. 2 Employment was 16.89 million, up 0.1% from 16.87 million in August. 3

Quarterly: in the third quarter the unemployment rate was 3.0%, unchanged from Q2 2026. 4 Unemployed persons averaged 513,700, up 0.8% from 509,700 in Q2 2026. 5 Of the actively unemployed, 67.3% had been jobless for less than three months; long-term unemployed (over a year) 3.1%. 6 The female participation rate was 57.0%, unchanged from Q2 2026; overall rate 71.0%. 7 By state, Putrajaya had the lowest rate, followed by Melaka and Selangor.

Analysis

Time series: the monthly rate has stayed between 2.9% and 3.0% since March (chart), and the September reading matches August's 2.9%. 8 Household borrowing is growing at a similar steady pace: household loans grew 5.3% year on year in September. 9 With growth at 5.3% in the third quarter on the advance estimate, 10 the labour data show little sign so far of pressure on household repayment capacity.

Cross-country: Philippine unemployment rose to 5.4% in September, up from 5.3% in August 2026 and 3.8% in September 2025. 11 Malaysia's labour market is tighter and more stable, which supports income-based underwriting there; in the Philippines, rising joblessness and high inflation weigh more on borrowers' cash flow.

Unemployment rate (%)
01232.92026-0332026-0432026-0532026-0632026-072.92026-082.92026-09
Unemployment rate (%)
2026-032.9
2026-043
2026-053
2026-063
2026-073
2026-082.9
2026-092.9

Unemployed persons as % of the labour force, monthly Labour Force Statistics (DOSM) · Source: DOSM monthly Labour Force Statistics (as reported by BERNAMA, The Star, Malay Mail) (2026-03, 2026-04, 2026-05, 2026-06, 2026-07, 2026-08, 2026-09)

Counterpoints and uncertainties

A rate held at the same rounded figure can hide changes: the number of unemployed rose in September. Headline rates do not capture underemployment or income loss among informal and own-account workers, who repay from irregular cash flows. Monthly and quarterly figures are not directly comparable, since quarterly figures are averages from the quarterly survey.

Key figures

  1. Unemployment rate (DOSM): 2.9% (unchanged from August; 3.0% in September 2025)
    The September 2025 comparison is from Trading Economics' summary of DOSM data.
    . Unemployed persons as % of the labour force, monthly Labour Force Statistics (DOSM). Malaysia. Basis date: 30 Sep 2026. Source: BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  2. Unemployed persons (DOSM): 513,200 (up from 511,600 in August). Number of unemployed persons, monthly Labour Force Statistics (DOSM). Malaysia. Basis date: 30 Sep 2026. Source: BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  3. Employed persons (DOSM): 16.89 million (up 0.1% from 16.87 million in August). Number of employed persons, monthly Labour Force Statistics (DOSM). Malaysia. Basis date: 30 Sep 2026. Source: BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  4. Unemployment rate, quarterly (DOSM): 3.0% (unchanged from Q2 2026). Unemployed persons as % of the labour force, quarterly Labour Force Survey (DOSM). Malaysia. Basis date: 30 Sep 2026. Source: BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  5. Unemployed persons, quarterly (DOSM): 513,700 (up 0.8% from 509,700 in Q2 2026). Number of unemployed persons, quarterly Labour Force Survey (DOSM). Malaysia. Basis date: 30 Sep 2026. Source: BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  6. Share of actively unemployed jobless under three months (DOSM): 67.3% (long-term unemployed (over a year) 3.1%). Actively unemployed persons out of work for less than three months, % of actively unemployed, Q3 2026 (DOSM). Malaysia. Basis date: 30 Sep 2026. Source: BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  7. Female labour force participation rate (DOSM): 57.0% (unchanged from Q2 2026; overall rate 71.0%). Women in the labour force as % of working-age women, quarterly Labour Force Survey (DOSM). Malaysia. Basis date: 30 Sep 2026. Source: BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  8. Unemployment rate (DOSM): 2.9% (down from 3.0% in July). Unemployed persons as a share of the labour force. Malaysia, Labour Force Survey (DOSM). Basis date: 31 Aug 2026. Source: BERNAMA: Malaysia's Unemployment Rate Dips To 2.9 Per Cent In August - DOSM (2026-10-09)
  9. Household loan growth (BNM): 5.3% (up from 5.2% in August). Year-on-year growth of outstanding household loans, banking system. Malaysia, banking system. Basis date: 30 Sep 2026. Source: Bank Negara Malaysia: Monthly Highlights & Statistics, September 2026 (released 2026-10-30)
  10. Real GDP growth, Q3 2026 (advance estimate): 5.3% (down from 6.0% in Q2 2026)
    Advance estimate compiled from partial data; DOSM publishes the preliminary Q3 2026 GDP on 18 November 2026 and figures may differ.
    . Year-on-year real GDP growth, DOSM advance estimate. Malaysia, national. Basis date: 30 Sep 2026. Source: DOSM: Advance GDP Estimates, Third Quarter 2026 (16 October 2026)
  11. Unemployment rate (PSA): 5.4% (up from 5.3% in August 2026 and 3.8% in September 2025). Unemployed persons as % of the labour force, Labor Force Survey. Philippines, persons aged 15 and over. Basis date: 30 Sep 2026. Source: GMA News: PH unemployment climbs to 5.4% in September 2026 (2026-11-06)

Sources

  1. BERNAMA: DOSM Labour Force Statistics, September and Q3 2026 (2026-11-11)
  2. The Star: Unemployment rate Q3 2026: Putrajaya records lowest, followed by Melaka, Selangor (2026-11-11)
  3. Trading Economics: Malaysia jobless rate holds steady at 2.9% (2026-11-11)
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A Japanese version of this article is available: 日本語版

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