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Over 38,000 workers lost their jobs within the first five months of 2026, with young adults bearing the brunt of the layoffs in Malaysia
Recent statistics from the Employment Insurance System (EIS) under the Social Security Organisation (PERKESO) revealed that workers aged 25 to 39 accounted for the majority of retrenchment cases.
The layoffs impacted 23,536 men and 15,417 women, highlighting the scale of the workforce disruption.
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Image via NSTP/MOHAMAD SHAHRIL BADRI SAALIHuman Resources Minister Datuk Seri R Ramanan explained that the job cuts were primarily triggered by widespread corporate restructuring and operational adjustments as companies sought to navigate a volatile economic climate
The corporate downsizing heavily impacted several core economic pillars: Manufacturing, wholesale and retail trade, and administrative support services.
"The Human Resources Ministry (KESUMA) views seriously the increase in loss of employment (LOE) cases recorded across several economic sectors during the first five months of 2026," Ramanan said, according to the New Straits Times
Human Resources Minister Datuk Seri R Ramanan.
Image via New Straits Times / BernamaTo cushion the blow, the ministry is boosting early interventions, upskilling programmes, and career profiling to transition affected millennials into high-demand tech and industrial roles
Displaced workers are urged to leverage official national digital platforms, including MYFutureJobs Galaxy and the Labour Market Exchange (LMX), to navigate their next career pivots.
Despite micro-level corporate anxieties, Ramanan noted that Malaysia's macro labour market remains resilient, with the unemployment rate holding steady at 3% and a workforce of 17.33 million individuals.
