Malaysia recorded 52,607 job losses by mid-July 2026, with new data showing white-collar workers among the hardest hit groups. The latest figures from the Social Security Organization (PERKESO) showed that retrenchments are increasing faster than last year.
According to PERKESO’s Employment Insurance System (EIS) report, 52,607 workers applied for unemployment benefits as of July 16, 2026. The number already represents about 70 per cent of all job losses recorded throughout 2025, when 74,841 workers lost their jobs.
If the current trend continues, 2026 could become Malaysia’s worst year for retrenchments since the COVID-19 pandemic. The country recorded more than 107,024 job loss cases in 2020.
Job losses continue rising
The increase has continued every month in the first half of 2026. Each month recorded more retrenchments compared with the same period last year.
January saw the biggest rise, with 10,658 workers applying for unemployment benefits, compared with 6,275 cases in January 2025. This marked a 70 per cent increase.
In January-June 2026, the number of Malaysians who applied for unemployment benefits was 47,053. This was higher than the 34,005 applications recorded during the same period in 2025, representing a 38 percent increase.
Professionals Among Most Affected
White-collar workers continued to make up the largest group affected by job losses. Workers under the Professionals, Managers, Executives, and Technicians (PMET) category accounted for 51 percent of all retrenchments recorded this year.
Professionals recorded the highest number of cases at 13,461, followed by technicians with 7,104 cases and managers with 6,165 cases. Together, these three groups made up more than half of all reported job losses.
Lower-income workers also faced difficulties, with nearly 44 percent of retrenched workers earning below RM3,000 monthly. About 20,878 people from this income group lost their jobs.
Cities And Industries Hit Hardest
Kuala Lumpur and Selangor recorded the highest number of job losses, accounting for almost 60 percent of all unemployment benefit applications. Kuala Lumpur reported 15,893 cases, while Selangor recorded 15,228 cases.
The services sector experienced the most job losses, with 36,040 cases or 69 per cent of total applications. Manufacturing followed with 10,260 cases, while construction recorded 5,403 cases.
Although unemployment benefit applications dropped slightly in the second quarter, PERKESO’s latest figures show that Malaysia’s labour market remains under pressure, with both skilled professionals and lower-income workers affected.
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