Overview

In the first quarter of 2022, Malaysia’s labour productivity as measured by value added per hour worked grew at a marginal rate of 0.3 per cent (Q4 2021: 1.3%). During this quarter, value added expanded to 5.0 per cent (Q4 2021: 3.6%) while hours worked increased 4.6 per cent (Q4 2021: 2.3%). Meanwhile, labour productivity expressed in terms of value added per employment rose 2.7 per cent (Q4 2021: 1.7%) as employment increased 2.2 per cent (Q4 2021: 1.8%). Labour productivity as measured by value added per hour worked during this quarter was RM40.3 per hour (Q4 2021: RM42.3 per hour) while value added per employment was RM23,129 (Q4 2021: RM24,047).

In Agriculture sector, labour productivity per hour worked during the quarter declined marginally at 0.2 per cent as against positive growth of 1.7 per cent last quarter. The value added of this sector grew 0.2 per cent (Q4 2021: 2.8%) while hours worked increased slightly by 0.4 per cent (Q4 2021: 1.1%). Labour productivity by value added per employment recorded a slower growth of 1.0 per cent (Q4 2021: 2.9%). In addition, employment remained in the declining trend at 0.8 per cent as compared to negative 0.1 per cent in the previous quarter. In Q1 2022, value added per hour worked for this sector was RM22.9 per hour (Q4 2021: RM25.3 per hour) while value added per employment was RM12,192 (Q4 2021: RM13,463).

Labour productivity by value added per hour worked for Mining and quarrying sector fell 4.8 per cent in the quarter as against negative growth of  9.1  per  cent  in  Q4  2021.  Value  added  dropped  1.1  per  cent  in  the  first  quarter  of  2022 (Q4 2021: -0.6%) while hours worked increased 3.9 per cent (Q4 2021: 9.3%). Labour productivity per employment decreased 3.6 per cent as against negative 10.5 per cent while employment increased at 2.6 per cent (Q4 2021: 11.0%). Level of labour productivity which is measured as value added per hour worked was RM530.9 per hour in Q1 2022 (Q4 2021: RM532.4 per hour) while value added per employment was RM317,500 (Q4 2021: RM314,462).

Labour productivity per hour worked for Manufacturing declined slightly by 0.1 per cent in Q1 2022 (Q4 2021: 4.6%). Value added of this sector grew 6.6 per cent in this quarter (Q4 2021: 9.1%) while hours worked increased 6.8 per cent (Q4 2021: 4.3%).  The  highest  growth of  labour  productivity  were  registered  by  Electrical,  electronic &  optical  products  (8.0%),  Non-metallic mineral products, basic metal & fabricated metal products (3.3%) and  Wood  products,  furniture,  paper  products  & printing (0.4%). Meanwhile, labour productivity expressed as ratio of value added per employment went up 2.8 per  cent  (Q4 2021: 5.3%) while employment remains its positive growth at 3.7  per cent  as  compared  to  3.6  per  cent  in  Q4  2021.  In terms of labour productivity level, the value added per hour worked and value added per employment were  RM54.9  per  hour  (Q4 2021: RM58.3 per hour) and RM32,270 (Q4 2021: RM34,308), respectively.

In Q1 2022, labour productivity by value added per hour worked for Construction posted a decrease of 8.2 per cent  as opposed to double digit negative growth of 11.0 per cent in last quarter.  Value  added  in  this  sector  decreased  6.2  per  cent  (Q4 2021: -12.2%) while hours worked rebounded to 2.3 per cent as against negative 1.4 per cent in Q4 2021. During the quarter, labour productivity in terms of value added per employment for this sector remained subdued at  5.5  per  cent  in  Q1  2022  (Q4 2021: -11.2%) as employment decreased marginally 0.6 per cent as against negative 1.2 per cent in last quarter. Level of labour productivity which is measured as value added per hour worked was RM15.6 per hour (Q4 2021: RM15.5 per hour) while value added per employment was RM9,351 (Q4 2021: RM9,080).

Labour productivity in terms of value added per hour worked for Services sector improved 1.2 per cent (Q4 2021: 0.8%). In Q1 2022, value added of this sector expanded strongly at 6.5 per cent (Q4 2021: 3.2%) while hours worked went up 5.2 per cent (Q4 2021: 2.5%). During the quarter, four sub-sectors posted positive growths for labour productivity per hour worked with the largest increase was registered by Transportation & storage (21.7%), Food & beverages and accommodation (14.6%), followed by Real estate & business services (6.2%) and Other services (2.6%). Meanwhile, labour productivity expressed as the ratio of value added per employment stepped up to 3.6 per cent (Q4 2021: 1.1%) while employment  increased  2.8  per  cent  (Q4 2021: 2.1%). Value added per hour worked in Q1 2022 for Services sector was RM38.2 per hour (Q4 2021: RM39.9 per hour) while value added per employment was RM21,918 (Q4 2021: RM22,621).

The detailed information and technical notes are published in the publication of Labour Productivity First Quarter 2022. This report is accessible and downloadable free of charge through the eStatistik application in DOSM Portal, www.dosm.gov.my.

Released By:

THE OFFICE OF CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA

19 May 2022

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