The Malaysian unemployment rate held steady in January, reflecting an improving labour market, according to a survey by the Department of Statistics Malaysia (DOSM).

The most recent Labour Force Survey, released on Tuesday, showed the unemployment rate at 3.1%, affecting 533,800 individuals.

Chief Statistician Datuk Sri Dr. Mohd Uzir Mahidin stated that Malaysia's labour market showed an upward trend in January, indicating continued economic improvement despite challenges in trade and inflation, The Edge Malaysia reports.

The survey also revealed a 0.3% month-on-month growth in the labour force, reaching 17.22 million people.

The chief statistician noted that this positive trend was fuelled by an increase in employment, while the number of unemployed individuals continued to decrease. The labour force participation rate remained steady at 70.6%, the same as the previous month.

In addition, employment growth was seen across key economic sectors, with the services sector showing significant growth, particularly in accommodation and food services, wholesale and retail trade, and human health and social work activities.

Positive employment trends were also observed in manufacturing, construction, agriculture, and mining and quarrying.

Youth unemployment showed a slight decline for individuals aged 15 to 24, while remaining stable for those aged 15 to 30.

Indeed, the survey highlighted that the youth unemployment rate for those aged 15 to 24 dropped by 0.1 percentage point to 10.3%, equating to 299,300 individuals.

Meanwhile, for youths aged 15 to 30, the unemployment rate remained steady at 6.3%, with 402,400 individuals unemployed.

Furthermore, the number of individuals outside the labour force slightly decreased by 0.3%, with housework/family responsibilities and schooling/training remaining the main reasons for non-participation.

The survey revealed that 43.6% of non-participation was due to housework or family responsibilities, while 41.8% was attributed to schooling or training.

The DOSM's statement highlighted that Malaysia's strong economic position had a positive effect on the country's labour market.

The statement noted that this positive situation is driven by robust domestic demand, government initiatives, a rise in tourism activities, and ongoing investments in infrastructure projects and key sectors.

With the country's economic performance improving and major sectors experiencing strong growth, Malaysia's labour market is expected to maintain stable growth, with increasing employment and a decline in unemployment.