Job market remains resilient in October 2025 helping consumption

PETALING JAYA: Joblessness among young people in Malaysia remains “persistently elevated”, according to MBSB Research.

In a Jan 2 report, the research house said the country’s youth unemployment rate among those aged 15 to 24 held steady at 10.1% in October 2025.

At 10.1%, the research house also underscores challenges for graduates and new entrants in securing employment and transitioning into the labour market.

Regardless, it said Malaysia’s labour market remained resilient in October 2025, with the unemployment rate held steady at 3% year-on-year (y-o-y) for the sixth consecutive month, remaining at the lowest level in a decade.

“Looking ahead, labour market resilience is expected to support domestic consumption, a key driver of growth into 2026,” stated MBSB Research.

“Domestic-orientated sectors are expected to benefit from Visit Malaysia 2026, as increased tourist arrivals will stimulate local business activities.”

The resilient labour market performance in October 2025 stemmed from steady employment growth of 3.1% y-o-y, which has outpaced labour force expansion by 2.8% y-o-y since August 2021. Both indicators maintained their pace from the previous month.

The number of unemployed people was unchanged at 519,000, although on an annual basis it declined further at a slower pace of 4.9% y-o-y.