Malaysia Job Losses Rise 21% in April as PM Anwar Pledges Swift Action for Affected Workers

KUALA LUMPUR, May, 2026 — Prime Minister Datuk Seri Anwar Ibrahim has pledged swift government action after Malaysia recorded a sharp rise in job losses in April, with 7,057 workers reported to have lost their employment during the month.

The figure represented a 21 per cent increase from the 5,855 job loss cases recorded in March, raising fresh concern over the country’s labour market situation despite Malaysia’s broader employment indicators remaining relatively stable. The latest figure was disclosed following labour market data discussed at the National Economic Action Council meeting.

Anwar said the matter had been reviewed by the National Economic Action Council, with the government now preparing immediate measures to improve the situation and provide alternative employment opportunities for affected workers, especially young people entering or re-entering the job market.

According to the prime minister, the government is expected to introduce further measures within the next one to two weeks. These efforts will focus on restoring employment opportunities, improving job placement channels, and ensuring that new investments entering the country are more directly connected to jobs for Malaysians.

“There are now new job opportunities and we must channel them properly so there is synergy with new investments,” Anwar said, referring to major industrial and economic areas such as Perak, Penang, Kulim High Tech Park in Kedah, Selangor, Negeri Sembilan, Johor and Sarawak.

The prime minister, who also serves as Finance Minister, said the government wants to ensure that investments flowing into Malaysia do not only benefit companies and industries, but also create meaningful employment for local workers. This includes matching workers who have lost their jobs with sectors that are still expanding and in need of manpower.

The April job loss figure also comes after a fluctuating trend in the first quarter of the year. Earlier data showed that Malaysia recorded 10,658 job losses in January and 7,512 cases in February, before easing to 5,855 in March and rising again to 7,057 in April.

Economy Minister Datuk Seri Mohd Akmal Nasrullah Mohd Nasir said the increase must be monitored closely because every reported case represents a worker and a household that may have lost a source of income. He also said the government would ensure that the Employment Insurance System and career protection support under Socso function quickly to assist those who need help.

Anwar said the government is also paying close attention to sectors with strong market demand, particularly information technology and artificial intelligence. These areas are increasingly seen as important sources of future employment as businesses shift towards digitalisation, automation and high-value industries.

He added that special training programmes may be provided where necessary to help young Malaysians enter new fields of employment. This suggests that the government’s response may not only focus on immediate job placement, but also on reskilling and upskilling workers for industries with stronger long-term growth potential.

Although the rise in job losses has drawn public concern, Anwar said the situation has not reached an alarming level. However, he stressed that the government is treating the matter seriously because job losses have a direct impact on families and household stability.

“Every job loss within a family is certainly worrying, so we are trying to address it as best as possible,” he said.

The latest available labour force data from the Department of Statistics Malaysia showed that Malaysia’s unemployment rate remained at 2.9 per cent in March 2026. In the same month, the labour force stood at 17.31 million people, while employment rose to 16.80 million.

However, the rise in reported job losses in April suggests that certain groups of workers may still be facing pressure, particularly in sectors affected by business restructuring, cost pressures or shifts in market demand. Job loss data and unemployment data measure different parts of the labour market, meaning a rise in retrenchments does not automatically translate into a higher unemployment rate, especially if affected workers are quickly reabsorbed into new jobs.

The government’s next steps will therefore be closely watched, particularly in terms of how quickly displaced workers can be connected to new vacancies, whether training programmes can meet industry needs, and how effectively new investments can create quality employment for Malaysians.

Anwar made the remarks after presenting sacrificial cows to the Penanti state constituency community at Padang Mengkuang Titi in conjunction with the upcoming Aidiladha celebration. He also contributed 260 sacrificial cows to the Permatang Pauh parliamentary constituency.

The issue of job losses is expected to remain a key economic concern in the coming weeks, especially as the government balances investment growth, labour market stability and the need to protect workers from sudden income disruption.