Selangor and Kuala Lumpur recorded the highest number of job losses in Malaysia in March, even as the country’s overall unemployment rate remained unchanged.
According to the The Star, a research note by Hong Leong Investment Bank (HLIB) revealed that Selangor accounted for 29.3% of total loss of employment (LOE) cases, followed by Kuala Lumpur at 25.6%.
The figures, based on data from the Social Security Organisation, highlight how the nation’s key economic hubs continue to bear the brunt of retrenchments, as reported by the New Straits Times.
Job losses fall, but key sectors still under pressure
Malaysia recorded 5,900 job losses in March, marking a 21.3% decline from 7,500 cases in February.
Despite the drop, layoffs remained concentrated in several major sectors, particularly manufacturing, wholesale and retail trade, as well as information and communication.
HLIB described manufacturing as the “weakest link” in job security, citing its exposure to global trade tensions and external demand shocks.
Labour market shows signs of resilience
At the same time, labour demand showed improvement.
Total job vacancies rose to 107,000 in March, up from 96,500 previously, suggesting underlying resilience in the domestic economy.
Malaysia’s unemployment rate held steady at 2.9% in February, marking the fourth consecutive month at that level. Employment also edged up by 0.1% month-on-month, supported by hiring across most sectors except mining.
On a yearly basis, the number of unemployed persons declined by 4.9%, pointing to gradual improvement in labour market conditions. The labour force continued to expand, while the participation rate remained unchanged at 70.9%.
Why Selangor and KL are the hardest hit
HLIB noted that states with a high concentration of industrial and export-oriented activities tend to record higher layoff numbers.
As Malaysia’s main industrial and commercial centres, Selangor and Kuala Lumpur naturally see the largest share of retrenchments due to their size and employment base.
Beyond the Klang Valley, Penang and Johor remain particularly sensitive to external economic shifts.
Penang’s heavy reliance on the electrical and electronics sector makes it vulnerable to global tech slowdowns. Meanwhile, Johor faces risks tied to trade fluctuations and spillover effects from neighbouring Singapore.
