Malaysia’s Job Losses Rise Again As Over 7,000 Workers Retrenched In April

April layoffs jumped 21% from March, reversing the downward trend seen earlier this year.

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Cover ImageCover image via Manan Vatsyayana/AFP

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Malaysia's job losses climbed again in April, with more than 7,000 workers retrenched nationwide, reversing the easing trend seen earlier this year

Economy Minister Datuk Seri Mohd Akmal Nasrullah Mohd Nasir said 7,057 workers lost their jobs in April, marking a sharp 21% increase compared to the 5,855 retrenchments recorded in March.

The latest figures signal a renewed uptick in layoffs after job losses had steadily declined during the first quarter of 2026.

Malaysia began the year with a sharp spike in retrenchments, recording 10,658 layoffs in January before easing to 7,512 in February and 5,855 in March.

However, April's increase to 7,057 cases has now interrupted that downward trajectory.

The latest figures bring Malaysia's total retrenchments for 2026 so far to 31,082 workers.

The updated monthly trend now stands at:

Source: PERKESO / Ministry of Economy / Sadho Ram / SAYS.com

💡 Hover over the points to see the monthly retrenchment figures.

The latest increase comes after earlier concerns that the second quarter of 2026 could become a pressure point for the labour market amid rising operating costs and global economic uncertainty.

"Every figure represents a family"

Speaking during a media briefing on 25 May, Mohd Akmal said the figures remained a serious concern despite being lower than the peak seen in January.

"Every single figure represents a family that has lost its source of income. The government will ensure that the Employment Insurance System (SIP) or LINDUNG Kerjaya under the Social Security Organisation (PERKESO) functions swiftly to assist them," he said.

He added that the situation still requires close monitoring.

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Image via Utusan Malaysia

Government to announce measures within two weeks

Prime Minister Datuk Seri Anwar Ibrahim said the government would roll out immediate measures within the next two weeks to help affected workers and improve access to alternative employment opportunities.

The matter was discussed during a meeting of the National Economic Action Council (MTEN), particularly on aligning incoming investments with local hiring opportunities.

"There are now new job opportunities, and we must channel them properly so there is synergy with new investments coming into areas such as Perak, Penang, Kulim High Tech in Kedah, Selangor, Negeri Sembilan, Johor and Sarawak," Anwar said earlier this week.

"So within the next week or two, there will be other measures to help restore the situation and provide several new job opportunities, especially for young people," he added.

IT and AI among focus sectors

Anwar said sectors related to information technology (IT) and artificial intelligence (AI) remain among the government's key priorities due to strong market demand.

He said special training programmes may be introduced to help youths transition into new employment sectors if necessary.

"So if there is a need, we will provide special training to enable these youths to enter new fields of employment," he said.

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Image via Bernama

Layoffs not yet at "alarming" stage

Despite the increase, the prime minister stressed that the situation had not yet reached an alarming level.

However, he acknowledged the emotional and financial impact job losses can have on households.

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

The latest figures come amid ongoing concerns over rising energy costs, global supply disruptions, and external economic pressures linked to geopolitical tensions in West Asia.

Earlier this year, the government warned that higher fuel prices and logistics costs could eventually lead to operational cutbacks and retrenchments if the pressures persist.

Meanwhile, read why some employers say workers are leaving too quickly:
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