Overview

In  the  second  quarter  of  2020,  Malaysia’s  labour  productivity  as  measured  by  value  added  per  hour  worked  increased 15.6 per cent after registering 2.1 per cent in the preceding quarter. The double digit growth in labour productivity by value added per hour worked in this quarter was due to larger declined in hours worked as compared to sluggish performance in gross value added. During this quarter, Malaysia’s Gross Domestic Product contracted 17.1 per cent (Q1 2020: 0.7%) with hours worked decreased further to 28.2 per cent (Q1 2020: -1.4%). Labour productivity expressed in terms of value added per employment dropped 16.0 per cent in this quarter from negative 0.8 per cent in Q1 2020 as employment declined 1.3 per cent (Q1 2020: 1.6%). In terms of labour productivity level, value added per hour worked  was  RM46  per  hour  in  Q2  2020  (Q1 2020: RM40 per hour) while value added per employment was RM19,455 per person (Q1 2020: RM22,577 per person). 

Labour  productivity  by  hours  worked  for  Agriculture  sector  went  up  to  16.1  per  cent in  Q2 2020  as  compared  negative 7.1 per cent in Q1 2020. The growth of value added during this quarter was 1.0 per cent (Q1 2020: -8.7%) while hours worked decreased 13.0 per cent (Q1 2020: -1.8%). In this quarter, labour productivity by value added per employment increased 1.5 per cent (Q1 2020: -8.9%) while employment with a smaller decline of 0.5 per cent (Q1 2020: 0.1%). Value added per hour worked for Agriculture sector was RM29 per hour in Q2 2020 (Q1 2020: RM23 per hour) while value added per employment was RM13,243 per person (Q1 2020: RM11,948 per person).

Mining and Quarrying sector recorded a growth of 6.9 per cent (Q1 2020: 3.8%) of labour productivity by hours worked. The value added for this sector declined further to negative 20.0 per cent (Q1 2020: -2.0%) while hours worked dropped at a faster rate of negative 25.1 per cent (Q1 2020: -5.6%). Measuring labour productivity by value added per employment for this sector, decreased 17.1 per cent (Q1 2020: -0.4%) as employment dropped 3.5 per cent (Q1 2020: -1.7%). Value added per hour worked in Q2 2020 for Mining and Quarrying sector was RM602 per hour (Q1 2020: RM565 per hour) while value added per employment was RM280,302 per person (Q1 2020: RM339,032 per person). 

The growth of labour productivity, value added per hour worked for Manufacturing sector stepped  up  15.2  per  cent  (Q1 2020: 2.2%). The value added of this sector plunged 18.3 per cent after registering 1.5 per cent in the preceding quarter while hours worked dropped 29.1 per cent (Q1 2020: -0.7%). The highest growth of labour productivity by hours worked in Manufacturing sector was recorded by Vegetable and animal oils & fats and food processing (36.1%). This was followed by Transport equipment, other manufacturing & repair and Electrical, electronic & optical products  which  posted  a  growth  of  35.7 per cent and 35.2 per cent respectively. Meanwhile, labour productivity expressed as the ratio of value added to employment fell 17.3 per cent (Q1 2020: -0.2%) as employment declined 1.3 per cent (Q1 2020: 1.6%). Level of labour productivity which measured as value added per hour worked was RM60 per hour in Q2 2020 (Q1 2020: RM51 per hour) while value added per employment was RM25,739 per person (Q1 2020: RM29,788 per person).

Labour  productivity  by  hours  worked  for  Construction  sector  declined  3.2  per  cent  in  Q2  2020  (Q1 2020: -1.6%). The growth of value added in this sector plummeted 44.5 per cent (Q1 2020: -7.9%)  while  hours  worked  decreased  further  to  42.7 per cent (Q1 2020: -6.4%). In the meantime, labour productivity measured as value added per employment dropped 40.8 per cent from negative 5.3 per cent in the preceding quarter. In addition, employment recorded a negative growth for seven consecutive quarters with a rate of negative 6.3 per cent (Q1 2020: -2.7%). Value added per hour worked for this sector was RM18 per hour (Q1 2020: RM19 per hour) while value added per employment was RM6,536 per person (Q1 2020: RM10,776 per person).

Services  sector  posted  a  growth  of  labour  productivity  in  terms  of  value  added  per  hour  worked  at  17.2  per  cent (Q1 2020: 3.7%). Value added of this sector shrank 16.2 per cent (Q1 2020: 3.1%) while hours worked dropped  28.5  per  cent  (Q1 2020: -0.6%). During this quarter, the highest growth of labour productivity by hours worked in Services sector was recorded by Information & communication (51.5%). This was followed by Utilities (22.2%) and Finance & insurance (21.8%). Measuring labour productivity per employment for this sector, decreased 15.6 per cent (Q1 2020: 0.5%) while employment declined 0.6 per cent (Q1 2020: 2.5%). In terms of labour productivity level, value added per hour worked for this sector  in  Q2 2020 was RM44 per hour (Q1 2020: RM38 per hour) while value added per employment  was  RM18,427  per  person  (Q1 2020: RM21,655 per person).

Released By:

DATO' SRI DR. MOHD UZIR MAHIDIN
CHIEF STATISTICIAN MALAYSIA
DEPARTMENT OF STATISTICS, MALAYSIA
 DrUzir_Mahidin    Dr_Uzir

19 August 2020

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