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Most people would assume that lower-skilled workers are the first to lose their jobs when companies start cutting costs
But new research suggests the opposite has been happening in Malaysia, The Edge reported.
According to Maybank Investment Bank, high-skilled workers, including managers, professionals, technicians and associate professionals, have consistently accounted for the largest share of retrenchments in recent years.
The research house found they accounted for more than half of all retrenched workers between 2021 and 2025, and remained the biggest group affected during the first five months of 2026.
Many of these workers may have left through voluntary separation schemes (VSS) or early retirement programmes
The finding appears counterintuitive, but Maybank Investment believes there is a possible explanation.
Rather than being disproportionately targeted for layoffs, many high-skilled employees may have chosen to leave through schemes such as:
- Voluntary Separation Scheme (VSS)
- Mutual Separation Scheme (MSS)
- Early retirement packages
These programmes are more commonly offered to experienced employees in senior or specialised positions, which could explain why high-skilled workers feature so prominently in retrenchment statistics.
Under the Department of Statistics Malaysia's occupation classification, high-skilled workers include:
- Managers
- Professionals
- Technicians
- Associate professionals
Meanwhile, semi-skilled workers include clerical staff, sales and service workers, skilled agricultural workers, craft workers, and machine operators.
Low-skilled workers are classified under "elementary occupations".
People waiting to cross the road ahead in Wilayah Persekutuan.
Image via Syaiful Redzuan/Anadolu Agency/AFPNearly 39,000 workers lost their jobs in just five months
According to Social Security Organisation (PERKESO) data cited by Maybank Investment, nearly 39,000 workers were retrenched between January and May 2026, representing a 36% increase compared with the same period last year.
Manufacturing and services recorded the highest number of retrenchments, with companies citing business downsizing and closures as the main reasons.
Despite the layoffs, Malaysia is still considered to be at full employment
Despite the increase in retrenchments, Maybank Investment said Malaysia's overall labour market remains healthy.
The research house said the economy is still benefiting from post-pandemic recovery and sustained economic growth, allowing many retrenched workers to find new employment.
Between January and May, there were around 1.5 successful job placements for every worker retrenched, suggesting that displaced workers are continuing to re-enter the workforce.
The growing informal economy, including freelancing, gig work and micro businesses, has also helped absorb workers who lost their previous jobs.
