Malaysia’s unemployment rate rose slightly to 3.0% in Q2 2026, up from 2.9% in Q1, as the number of unemployed people increased to 509,700. By state and territory, Putrajaya recorded the lowest state-level unemployment rate in the second quarter at 1.3%, followed by Melaka and Pahang at 2.0% each, and Selangor at 2.1%. Putrajaya also recorded the highest labour force participation rate (LFPR) in the country at 79.4%, above the national rate of 70.9%. The figures show that Putrajaya had both the lowest unemployment rate and the highest share of working-age people who were either employed or actively seeking work during the quarter. Among people aged 15 to 24, the unemployment rate stood at 10.2%, with 292,200 unemployed young people recorded.