Overview

Malaysia’s labour productivity in the third quarter of 2021 as measured by value added per hour worked recorded marginal declined of 0.6 per cent (Q2 2021: -12.9%). During this quarter, the Malaysia’s economy contracted by 4.5 per cent from 16.1 per cent in previous quarter while hours worked decreased 3.9 per cent (Q2 2021: 33.3%). In Q3 2021, labour productivity expressed in terms of value added per employment fell by 5.6 percent as against to 13.7 per cent in Q2 2021 while employment increased modestly by 1.2 per cent (Q2 2021: 2.2%). Labour productivity as measured by value added per hour worked during this quarter was RM41 per hour (Q2 2021: RM40 per hour) while value added per employment was RM21,985 per person (Q2 2021: RM22,128 per person).

In Agriculture sector, labour productivity per hour worked in Q3 2021 decreased 3.4 per cent (Q2 2021: -15.6%). The value added of this sector declined further 1.9 per cent after recorded negative 1.5 per cent in Q2 2021 while total hours worked went up by 1.5 per cent (Q1 2021: 16.7%).  Labour  productivity  by  value  added  per  employment recorded a negative growth of 2.6 per cent (Q2 2021: -3.3%). In addition, employment increased by 0.6 per cent as against 1.8 per cent in the previous quarter. In Q3 2021, value added per hour worked for this sector was RM28 per hour (Q2 2021: RM24 per hour) while value added per employment was RM14,537 per person (Q2 2021: RM12,793 per person).

Labour productivity by value added per hour worked for Mining and Quarrying sector rebounded 4.1 per cent in this quarter as against negative growth of 7.1 per cent in Q2 2021. Value added dropped 3.6 per cent in the third  quarter  of  2021  (Q2 2021: 13.9%) while hours worked experienced a fall of 7.3 per cent after recorded positive growth of 22.6 per cent in Q2 2021. Labour productivity per employment slumped 1.3 per cent as against 14.1 per cent in the second quarter of 2021 while employment remained its negative trend for seven consecutive quarters at 2.3 per cent (Q2 2021: -0.2%). Level of labour productivity which measured as value added per hour worked was RM480 per hour in Q3 2021 (Q2 2021: RM564 per hour) while value added per employment was RM276,330 per person (Q2 2021: RM322,554 per person).

Labour   productivity   per   hour   worked   for   Manufacturing   sector   turned   around   to   2.3   per  cent  in  Q3  2021  (Q2 2021: -4.2%). Value added of this sector decreased slightly by 0.8 per cent in this quarter (Q2 2021: 26.6%) while hours worked reduced 3.0 per cent (Q2 2021: 32.3%). Sub-sector of Beverages & tobacco products and Transport equipment, other manufacturing and repair recorded a double-digit decline of 37.5 per cent and 23.5 per cent respectively. The labour productivity per employment dropped 3.5 per cent (Q2 2021: 23.2%)  while  employment  remain  its  positive  growth  at  2.9 per cent as compared to 2.8 per cent in Q2 2021. Sub-sectors which recorded significant decrease were Beverages & tobacco products (-41.2%) and Transport equipment, other manufacturing and repair (-30.7%). In terms of labour productivity level, the value added per hour worked and value added per employment were RM57 per hour (Q2 2021: RM57 per hour) and RM31,356 per person (Q2 2021: RM31,700 per person) respectively.

In Q3 2021, labour productivity by value added per hour worked for Construction sector continued on the declining trend with a decrease of 5.7 per cent (Q2 2021: -7.8%). Value added in this sector decreased 20.6 per cent in this quarter (Q2 2021: 40.3%) while hours worked dropped 15.7 per cent as against positive 52.2 per cent in Q2 2021. In the meantime, labour productivity in terms of value added per employment for this sector dropped 18.8 per cent in Q3 2021 (Q2 2021: 37.6%) as employment declined 2.1 per cent as opposed to positive growth of 1.9 per cent in Q2 2021. Level of labour productivity which measured as value added per hour worked was  RM17  per  hour  (Q2 2021: RM17 per hour)  while  value  added  per  employment  was  RM8,597  per person (Q2 2021: RM9,057 per person).

Labour productivity in terms of value added per hour worked for Services sector improved with a marginal declined of 1.8 per cent in this quarter after recorded negative 15.9 per cent in Q2 2021. In Q3 2021, the value added of this sector dropped  by  4.9  per  cent  (Q2 2021: 13.5%)  while  hours  worked  decreased   3.2 per  cent  (Q2 2021: 34.9%).  During  this  quarter,  four  sub-sectors posted a negative growth for labour productivity per hour worked with the largest decrease registered by  Food  & beverages and  Accommodation  (-20.1%) followed by  Real estate &   business  services  (-10.2%),  Wholesale  &  retail trade  (-8.0%) and Transportation and storage (-7.0%). Meanwhile, labour productivity expressed as the ratio of value added per employment dropped 6.2 per cent (Q2 2021: 11.1%) while employment increased 1.4 per cent (Q2 2021: 2.1%). Sub-sectors which recorded significant fall were Food & beverages and accommodation  (-19.1%),  followed  by  Real  estate  &  business  services  (-14.5%) and Wholesale & retail trade (-13.2%).  Value added per hour worked in Q3 2021 for Services sector was RM38 per hour (Q2 2021: RM37 per hour) while value added per employment was RM20,426 per person (Q2 2021: RM20,481 per person).

The detailed information and technical notes are published in the publication of Labour Productivity Third Quarter 2021. This report is accessible and downloadable free of charge through the eStatistik application in DOSM web page, www.dosm.gov.my.

Released By:

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

18 November 2021

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