Malaysia Hiring May Slow in 2H 2026 as Unemployment Holds at 3%
Updated
Updated · The Edge Malaysia · Jul 13
Malaysia Hiring May Slow in 2H 2026 as Unemployment Holds at 3%
2 articles · Updated · The Edge Malaysia · Jul 13
Summary
Higher material and operating costs may start weighing on Malaysia’s hiring in the second half of 2026, with analysts warning that labour demand could soften even as the market stays broadly resilient.
Apex Securities cited rising strain in June data: loss-of-employment cases climbed to 8,100 from 7,766, while job placements dropped to 10,591 from 14,366, though placements still partly cushioned job losses.
May labour figures showed mixed momentum — unemployment held at 3%, employment edged up 0.1% to 16.82 million, but vacancies fell to 114,500 from 122,000 and employment slipped 0.2% year on year.
Hong Leong Investment Bank said geopolitical tensions and the energy crisis could cap labour demand, although steady growth and government support should keep the job market stable.
Both research houses still expect Malaysia’s labour market to remain broadly steady through 2026, with Apex keeping its 3% unemployment forecast and HLIB seeing Bank Negara hold rates at 2.75%.