Overview

In  the  third  quarter of 2019,  Malaysia’s  labour  productivity,  as  measured  by  value  added  per hour  worked  rose  2.6 per cent after registering 2.4 per cent in the preceding quarter. During this quarter, Malaysia’s Gross Domestic Product (GDP) posted a growth of 4.4 per cent (Q2 2019: 4.9%) while hours worked increased 1.7 per cent against 2.4 per cent in Q2 2019. In the meantime,  labour  productivity  expressed  as  the  ratio of value added to employment recorded a growth of 2.3 per cent  (Q2 2019: 2.8%) while employment sustained at 2.1 per cent (Q2 2019: 2.1%).

Agriculture  sector  registered   a growth   of   labour   productivity   by   hours   worked   at  1.8  per  cent  (Q2 2019: 2.2%). The value added of this sector rose 3.7 per cent (Q2 2019: 4.2%) while hours worked remained at 1.9 per cent (Q2 2019: 1.9%). Meanwhile,  labour productivity  by  employment  posted  a  growth of  2.0  per  cent  (Q2 2019: 2.1%) as employment increased 1.7 per cent (Q2 2019: 2.0%).

Labour  productivity  by  hours  worked  for  Mining and Quarrying sector  continued  to  decline  with a growth  of  negative 3.4 per cent as against negative 0.7 per cent in the preceding quarter. The  value  added  of  this  sector  contracted  4.3 per cent (Q2 2019: 2.9%) while hours worked decreased 1.0 per cent (Q2 2019: 3.5%). Measuring  labour  productivity  by  value  added per employment,  this sector recorded a negative growth of 5.4 per cent (Q2 2019: 1.4%) while employment increased 1.1 per cent (Q2 2019: 1.4%).

Manufacturing   sector   posted  a  growth  of  labour   productivity   by  hours   worked  at  2.9  per  cent   (Q2 2019: 2.5%).  During  this  quarter,  value  added  of  this  sector  grew  3.6  per  cent  after  registering 4.3 per cent in Q2 2019 while hours worked increased at a slower rate of 0.8 per cent (Q2 2019: 1.8%). The highest growth of labour productivity were registered by Transport equipment, other manufacturing & repair (5.6%), followed by Wood products, furniture, paper products & printing (5.2%) and Beverages & tobacco products  (4.2%).   In  addition,  Petroleum,  chemical,  rubber  &  plastics  products  which  contributed  29.5 per cent of  Manufacturing’s value added expanded 4.1 per cent (Q2 2019: 2.0%). In the meantime, labour productivity by employment  grew  modestly  to 1.6  per  cent  (Q2 2019: 2.4%) as employment increased 2.0 per cent (Q2 2019: 1.8%).

The   growth   of   labour   productivity   by  hours  worked  for  Construction  sector  was  1.6  per  cent  (Q2 2019: 3.3%). The   value   added   of  this   sector  registered  a  marginal  declined  of  1.5  per  cent  (Q2 2019: 0.5%) while hours worked continued to record a negative growth for six consecutive quarters by registering a negative growth of 3.1 per cent (Q2 2019: -2.7%). In terms of labour productivity by employment, this sector recorded a growth of 2.1 per cent (Q2 2019: 3.2%) as employment in this sector declined further to 3.5 per cent (Q2 2019: -2.6%).

Labour  productivity  by  hours  worked  for  Services  sector  posted a growth of 2.9 per cent in Q3 2019 (Q2 2019: 2.5%). Value added of this sector expanded by 5.9 per cent (Q2 2019: 6.1%) while hours worked increased 2.8 per cent (Q2 2019: 3.6%). During this quarter, the highest growth was recorded by Real estate & business services (5.8%). This was followed by Transportation & storage (3.9%), Utilities (3.3%) and Wholesale & retail trade (3.3%). Meanwhile, labour productivity expressed as the  ratio  of  value  added  to  employment  grew  2.7  per  cent  (Q2 2019: 3.0%)  as  employment  increased 3.1 per cent  (Q2 2019: 3.0%).

Released By:

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

21 November 2019

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