Kuala Lumpur, Feb 10: Malaysia's unemployment rate dropped to 3.3% in 2024, a 0.1 percentage point improvement from 3.4% in 2023, according to the Department of Statistics Malaysia (DOSM).

In a statement released Monday, DOSM attributed the positive labor market performance to robust economic growth, which fueled sustained labor demand across various sectors, particularly in the private sector.

The country's labor force participation rate (LFPR) rose to 70.4% in 2024, up from 70% in the previous year.

In the fourth quarter of 2024, the unemployment rate remained stable at 3.2%, with the number of unemployed individuals declining by 0.2% to 546,900. The labor force during the quarter grew by 0.4% to 17.34 million, while the LFPR increased to 70.6%.

Employment also saw positive growth, with the number of employed persons rising by 0.5% quarter on quarter to 16.79 million.

December 2024 marked a nine-year low in unemployment at 3.1%, with 544,300 people unemployed. The labor force continued its upward trend, rising by 0.1% month on month to 17.32 million, accompanied by an LFPR increase to 70.6%.

Looking ahead to 2025, DOSM expects employment to continue rising, with unemployment remaining low. The manufacturing sector, particularly in electronics, along with services, is projected to drive further job creation.