Malaysia retrenched 38,953 workers between January and May 2026 due to corporate restructuring and operational adjustments in response to economic conditions [1, 2]. The manufacturing, wholesale and retail trade, motor vehicle repair, and administrative and support service sectors saw the most job cuts [1, 2].
Men accounted for the majority of those retrenched, with figures ranging from 60.4% to 64% of cases or about 23,536 workers. Women made up 39.6% of the job losses at 15,417 [1, 2]. Most affected workers were aged between 25 and 39 years [1, 2].
The total labour force in Malaysia reached 17.33 million in April 2026, with a low unemployment rate of 3.0% and a labour force participation rate of 70.9%. Participation among men stood at 82.9%, compared to 57.3% for women [1, 2].
Human Resources Minister Datuk Seri R. Ramanan said the ministry takes the rise in job losses seriously and has intensified intervention efforts to assist retrenched workers. "Various intervention measures have been intensified to help affected workers secure new employment, upgrade their skills and strengthen the resilience of the national labour market in the face of global geopolitical challenges," he said [1].
His counterpart, Datuk Seri Ramanan Ramakrishnan, noted that despite the sudden surge in retrenchments, the Malaysian labour market has shown defensive strength amid global and geopolitical headwinds [2].
The government’s responses include upskilling, reskilling, and employment matching platforms targeting those displaced from jobs [1, 2]. These efforts aim to stabilize employment during economic adjustments.
The next official labour market data release is expected following the April 2026 statistics, providing further updates on employment trends in Malaysia.
