Overview

Malaysia's Labour Productivity

Malaysia’s labour productivity as expressed in terms of value added per hour worked improved 1.3 per cent, year-on-year. The growth of labour productivity is in tandem with the expansion of the country’s Gross Domestic Product (GDP) at 8.9 per cent as compared to 5.0 per cent in the last quarter, while total hours worked went up 7.5 per cent (Q1 2022: 4.6%). 

Labour productivity as measured by value added per employment rose 5.5 per cent (Q1 2022: 2.7%), as employment increased 3.2 per cent (Q1 2022: 2.2%). Labour productivity by value added per hour worked was RM41.0 (Q1 2022: RM40.3 per hour) while value added per employment was RM23,322 (Q1 2022: RM23,124 per person).

Total hours worked increased to 8.9 billion as compared to 8.3 billion hours worked in the same quarter a year ago. Meanwhile, total employment also increased to 15.7 million persons as compared to 15.6 million persons in the previous quarter. 

Malaysia’s Labour Productivity by five (5) economic activities

For labour productivity per hour worked by economic activity, all sectors recorded negative growth except for Services sector which posted a growth of 4.0 per cent (Q1 2022: 1.2%). Construction sector fell 5.2 per cent, while three (3) other sectors remained in a declining trend that were Mining and quarrying (-5.1%), Agriculture (-3.5%) and Manufacturing (-1.9%).

Meanwhile,  labour  productivity  per  employment  for  Services  and  Manufacturing  sectors  increased  7.5  per  cent  and  4.0 per cent respectively, and Construction sector grew 2.9 per cent. While Mining and quarrying sector  continued to post a negative growth of 2.2 per cent and Agriculture sector fell by 1.7 per cent.

All  sectors  recorded  increases  in  total  hours  worked,  Manufacturing (11.3%),  Construction  (8.0%),  Services  (7.7%),  Mining and quarrying (4.8%), and Agriculture (1.1%). The rise in number of employment occurred mainly in Manufacturing sector (4.9%: +127.4 thousand persons), Services (4.2%; +386.8 thousand persons), and Mining and quarrying (1.8%; +1.3 thousand persons).

The full publication of the Labour Productivity Second Quarter 2022 can be downloaded through eStatistik eStatistik portal.

Released By:

DEPARTMENT OF STATISTICS, MALAYSIA

18 August 2022

Contact person:

Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
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Fax : +603-8888 9248
Email : yusrizal.razak[at]dosm.gov.my

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