Cambodia’s Labour Participation Climbs to 71.6% in 2025. Where Are the Biggest Opportunities?

Cambodia’s labour force participation rate increased to 71.6 percent in 2025, up from 69.3 percent in 2019, while unemployment stood at 3.6 percent, according to the Cambodia Labour Force Survey 2025 officially released by the Ministry of Planning on Sept. 2, 2026.

Cambodia’s Labour Participation Climbs to 71.6% in 2025

The findings provide a detailed picture of Cambodia’s changing labour market, including employment patterns, sector distribution, wages, informal employment and workforce participation. The results were officially launched in Phnom Penh on Sept. 2 at a ceremony presided over by Minister of Planning H.E. Bin Trachhey, with government officials, the International Labour Organisation (ILO), development partners and other national and international stakeholders in attendance.

“Cambodia’s labour market is becoming more active, but the data also points to important challenges around women’s participation, informal employment, wages and the quality of jobs. Turning these findings into targeted policy and investment decisions will be critical to building a more inclusive and sustainable economy.”

More Cambodians Are Joining the Labour Force

Cambodia had approximately 13.1 million people of working age in 2025, including 6.8 million women and 6.3 million men. About 7.8 million lived in rural areas, while 5.3 million lived in urban areas.

Overall, 71.6 percent of the working age population participated in the labour force. Participation was significantly higher among men, at 77.7 percent, compared with 65.9 percent among women. The figures highlight both the scale of Cambodia’s available workforce and the continuing difference between male and female participation.

Cambodia’s Labour Participation Climbs to 71.6% in 2025

The share of people outside the labour force also declined. In 2025, 28.4 percent of the working age population, or approximately 3.7 million people, were outside the labour force, compared with 30.7 percent in 2019. The decline indicates that a larger proportion of Cambodia’s working age population is engaging with the labour market.

Services Lead Employment as Cambodia’s Economy Evolves

The employment to working age population ratio reached 69.0 percent in 2025, equivalent to approximately 9.1 million employed people.

Services accounted for the largest share of employment, with 43.0 percent of employed people working in the sector. Industry followed at 29.4 percent, while agriculture accounted for 27.6 percent. The distribution illustrates the important role services and industry now play alongside agriculture in providing employment opportunities.

For businesses and investors, the employment structure offers an important indication of the sectors absorbing Cambodia’s workforce. At the same time, the continued presence of agriculture as a major source of employment underscores its ongoing importance to the national economy and rural livelihoods.

Unemployment Remains a Key Labour Market Indicator

Approximately 3.6 percent of the population aged 15 and above was unemployed in 2025, equivalent to about 342,067 people.

Of those unemployed, 146,504 were men and 195,564 were women. The figures show that unemployment affects women more heavily than men in absolute terms, despite women representing a smaller share of the working age population.

The unemployment figures provide another important measure for policymakers, employers and investors assessing Cambodia’s labour market. Alongside the participation rate, they help show both the availability of workers and the extent to which people seeking employment are able to find jobs.

Informal Employment Still Dominates the Workforce

One of the survey’s most significant findings is the continued dominance of informal employment. Some 75.1 percent of employed people worked in the informal sector, compared with 24.9 percent in formal employment.

The figures underline the scale of informal work within Cambodia’s economy and the importance of policies aimed at expanding access to formal employment opportunities. For businesses, the structure of employment also has implications for workforce development, productivity, job security and the broader transition toward a more formal economy.

The continued prevalence of informal employment makes labour market development an important consideration as Cambodia seeks to strengthen the resilience and sustainability of its economy.

Average Monthly Wage Reaches 1.2 Million Riel

The survey reported an average monthly wage of 1,201,436 Riel from workers’ main jobs, using an exchange rate of approximately 4,000 Riel to US$1.

Male workers earned an average of 1,263,533 Riel per month, while female workers earned an average of 1,121,316 Riel. The figures indicate a difference in average earnings between male and female workers.

For employers, investors and policymakers, wage data provides useful insight into labour costs and household earning capacity. It also offers an important basis for assessing workforce competitiveness and the economic conditions facing Cambodian workers.

Dependency Ratio Continues to Decline

Cambodia’s total dependency ratio stood at 49.5 percent in 2025, down from 50.6 percent in 2019.

The dependency ratio among children under 15 also declined, falling from 40.4 percent in 2019 to 37.9 percent in 2025. These changes reflect a gradual shift in the relationship between the working age population and those who depend on it.

For long term economic planning, demographic indicators such as these are closely connected to workforce availability, social policy and economic development. The changing dependency structure therefore provides another useful dimension to understanding Cambodia’s evolving labour market.

Government Urges Greater Use of Labour Market Data

The Ministry of Planning said the Cambodia Labour Force Survey 2025 provides official, reliable and quality statistical data on the country’s labour market situation and trends. The findings are intended to support evidence based policymaking, planning, monitoring and evaluation of socio economic development.

At the launch ceremony in Phnom Penh, Minister of Planning H.E. Bin Trachhey stressed the importance of using the findings to develop targeted policies, plans and interventions supporting inclusive, resilient and sustainable development. He linked this effort to Cambodia’s vision of becoming a high income country by 2050.

The Minister called on relevant ministries and institutions, sub national administrations, the private sector, educational institutions, researchers and development partners to make greater use of the survey findings in policymaking, decision making and investment.

“Let data become evidence, and evidence become action,” he said, stressing the need to ensure that policies and investments respond effectively to changes in the labour market.

The ceremony also brought together the International Labour Organisation (ILO), including Ms. Xiaoyan Qian, Director of ILO Country Office for Thailand, Cambodia, and Lao PDR, as well as development partners and other national and international stakeholders.

What the Numbers Mean for Cambodia’s Next Stage of Growth?

The 2025 labour force figures present a mixed but important picture of Cambodia’s economic development. More people are participating in the labour market, the share outside the labour force has declined, and services have become the largest employment sector.

At the same time, the high level of informal employment, differences in labour force participation between men and women and the gap in average wages highlight areas that require continued attention. Addressing these issues will be important for improving job quality, strengthening productivity and ensuring that economic growth creates broader opportunities.

For Cambodia’s business community and investors, the survey provides more than a snapshot of employment. It offers a clearer view of the people, sectors and economic conditions shaping the country’s workforce. The challenge now is turning those statistics into practical policies, stronger skills development and investment decisions that support sustainable and inclusive growth.

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