Malaysia recorded a fresh increase in job losses in April, with more than 7,000 workers retrenched across the country. The rise ended a three-month decline in layoffs and renewed concerns about pressure on the labour market during the second quarter of 2026.

According to Economy Minister Datuk Seri Mohd Akmal Nasrullah Mohd Nasir, a total of 7,057 workers lost their jobs in April. This was a 21 per cent increase from the 5,855 retrenchments reported in March. The latest figures pushed the total number of workers retrenched in Malaysia this year to 31,082.
Layoffs Increase After Earlier Improvement
Malaysia began 2026 with a sharp rise in retrenchments, recording 10,658 job losses in January. The number later eased to 7,512 in February and 5,855 in March, giving hope that the situation was improving.

However, the increase in April interrupted that downward trend. The latest figures suggest that some businesses may still be facing challenges linked to rising operating expenses and uncertainty in the global economy.
Officials have been monitoring the labour market closely as companies continue to deal with higher costs and changing economic conditions.
Government Promises Faster Assistance
Speaking during a media briefing on 25 May, Mohd Akmal said every retrenchment affects more than just employment figures.

He said each job loss represents a family that has lost its source of income. He added that the government would ensure that the Employment Insurance System (SIP) and LINDUNG Kerjaya programmes under the Social Security Organisation (PERKESO) continue providing quick support to affected workers.
The minister also stressed that the situation remains under close observation despite layoffs remaining below January’s peak level.
New Job Opportunities Planned
Prime Minister Datuk Seri Anwar Ibrahim said the government would introduce additional measures within the next two weeks to support affected workers and connect them with new employment opportunities.

He said discussions were held during a National Economic Action Council meeting on how to match incoming investments with local hiring needs. New opportunities are expected in areas such as Perak, Penang, Kulim High Tech in Kedah, Selangor, Negeri Sembilan, Johor, and Sarawak.
Anwar said information technology and artificial intelligence sectors remain key priorities because of strong demand. He added that special training programmes could be introduced to help young people gain skills and move into new industries.
Although retrenchments increased in April, the prime minister said the situation has not yet reached an alarming stage. However, he acknowledged that job losses continue to create financial and emotional pressure for many families.
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