52,607 Malaysians Lost Their Jobs By Mid-July, With White-Collar Workers Hit Hardest

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Malaysia is on course for its worst year of retrenchments since the pandemic, with new data showing job losses are accelerating beyond last year's levels

According to the latest Loss of Employment (LOE) report by the Social Security Organisation's (PERKESO) Employment Insurance System (EIS), 52,607 workers had applied for Unemployment Benefits (UB) as of 16 July 2026.

That figure already accounts for about 70% of all applications recorded throughout 2025, when 74,841 workers lost their jobs.

If the current pace continues, 2026 could surpass both 2024 and 2025, making it Malaysia's worst year for retrenchments since 2020, when more than 107,024 cases were recorded.

Job losses have surged every single month this year

As the data shows, the worrying trend isn't driven by one-off layoffs.

Instead, every month in the first half of 2026 recorded more retrenchments than the same period last year.

January 2026 saw the biggest jump, with 10,658 applications compared to 6,275 in January 2025, representing a 70% increase.

The trend continued throughout the following months:

Taken together, 47,053 Malaysians filed for unemployment benefits between January and June, up from 34,005 during the same six-month period last year.

That's a 38% increase in just one year.

White-collar workers continue to make up the biggest group losing their jobs

The latest figures also show that retrenchments are continuing to hit white-collar professionals harder than many would expect.

Workers in the Professionals, Managers, Executives, and Technicians (PMET) category accounted for 51% of all retrenchments recorded so far this year.

Breaking it down further:

• Professionals made up the largest group at 13,461 cases (26%)
• Technicians accounted for 7,104 cases (14%)
• Managers followed with 6,165 cases (12%)

Combined, these three occupations alone represented more than half of everyone who lost their jobs in 2026.

At the same time, lower-income Malaysians remain especially vulnerable

While professionals formed the largest occupational group, the data also highlights the pressure facing lower-income households.

Nearly 44% of all retrenched workers earned below RM3,000 a month, equivalent to 20,878 people.

The single biggest salary bracket affected was workers earning between RM2,000 and RM2,999, accounting for 11,298 cases, or nearly one in four applicants.

Kuala Lumpur and Selangor account for almost 60% of all job losses

Malaysia's economic heartland continues to bear the brunt of the layoffs.

Almost six in every 10 unemployment benefit applications came from just two locations: 15,893 cases (30%) in Kuala Lumpur and 15,228 cases (29%) in Selangor.

Johor followed a distant third with 4,035 cases (8%), while Penang recorded 3,530 cases (7%).

Services and manufacturing remain the hardest-hit industries

The services sector accounted for the overwhelming majority of retrenchments, recording 36,040 cases, or 69% of all applications.

Manufacturing followed with 10,260 cases (20%), while construction recorded 5,403 cases (10%).

Separately, manufacturing was also the single largest industry division affected, making up 20% of all layoffs, followed by wholesale and retail trade at 18%.

Overall, the latest figures point to a labour market that remains under pressure

Although PERKESO's report noted that unemployment benefit applications fell 4% in the second quarter compared with the first quarter, the broader picture remains concerning.

With 52,607 retrenchments already recorded by mid-July and every month in the first half of the year exceeding last year's levels, Malaysia is currently on track to record its highest annual job losses since the COVID-19 pandemic.

The latest figures also suggest the impact is being felt across the Malaysian labour market, with both highly skilled professionals and lower-income workers continuing to lose their jobs in significant numbers.