PETALING JAYA: The ongoing conflict within the Middle East is not expected to have any immediate repercussions on the local labour market, say economists. “While some sectors may gain, the broader labour market could face slower hiring, wage pressure and increased uncertainty – especially if the conflict drags on and weakens global growth.”Malaysia’s labour market remained firm in January 2026, with the overall unemployment rate standing at 2.9% during the month, as per data from the Statistics Department. One economist said the robust employment and labour market in January was expected, given resilient economic activity then. For now, TA Research said Malaysia’s labour market is expected to remain resilient in the coming months, supported by steady economic expansion, sustained labour demand and continued recovery in key sectors. “Further clarity on the labour market outlook is expected later this month, when Bank Negara Malaysia releases its 2025 annual report, which will include the central bank’s updated assessment and projections for labour market conditions in 2026.”

Source: The Star March 24, 2026 08:05 UTC