Chief Statistician Uzir Mahidin said the available labour force grew by 2.5% to 17.2 million people, primarily driven by a 2.8% increase in the number of people in employment, which reached 16.6 million in Q2 2024.

“During the same period, the number of unemployed people continued to decrease by 4.1% to 557,800 people, registering an overall unemployment rate of 3.3%, unchanged for three consecutive quarters,” he said in a statement.

Uzir said escalating household spending due to a strong labour market and broader policy support contributed to the improved performance of Malaysia’s economy, which achieved a higher growth rate of 5.9% in Q2 2024 compared with 4.2% in the preceding quarter.

Additionally, he said further expansion in exports and potential investments flowing into the country also played important roles in strengthening the demand for labour.

Uzir said labour force participation increased by 0.5% year-on-year to 70.5%.

He added that the number of persons working fewer than 30 hours per week declined by 1.6% compared with the same quarter in 2023.

“As a result, the number of people in time-related underemployment decreased by 8.9% to 169,800,” he said.

As the economy advanced in Q2 2024, he said, labour productivity measured by value added per employment edged up by 3.1% in the same quarter last year, reaching a value of RM24,151 per person.

Meanwhile, the total hours worked during the second quarter of 2024 improved by 3.4% to 9.61 billion hours.

“Consequently, value added per hour worked increased by 2.4% to RM41.7 per hour,” he added.