Overview

Malaysia's Labour Productivity

Malaysia’s labour productivity as expressed in terms of value added per hour worked improved 3.8 per cent, year-on-year as the country’s Gross Domestic Product (GDP) further expanded at 14.2 per cent as compared to 8.9 per cent in the last quarter, while total hours worked went up 10.0 per cent (Q2 2022: 7.5%). Total  hours  worked  in  the  third  quarter  of  2022  was  9.0 billion (Q2 2022: 8.9 billion hours worked). Labour productivity as measured by value added per employment rose 10.1 per cent (Q2 2022: 5.5%), as total employment increased 3.6 per cent (Q2 2022: 3.2%). Total employment in the third quarter of 2022 was 15.8 million (Q2 2022: 15.7 million persons). In terms of level, labour productivity by value added per hour worked was  RM42.5 (Q2 2022: RM41.0 per hour), while value added per employment was RM24,241 (Q2 2022: RM23,322 per person).

Agriculture

Labour productivity per hour worked in Agriculture sector fell 0.9 per cent, year-on-year, however improved compared to the previous quarter (Q2 2022: -3.4%). Value added in this sector improved 1.2 per cent against a contraction of 2.4 per cent in the previous quarter. Meanwhile, labour productivity by value added per employment for this sector improved 1.8 per cent in the third quarter of 2022, as employment continued to fall marginal by 0.6 per cent. In the third quarter 2022, level of value added per hour worked for this sector was RM27.2 (Q2 2022: RM23.4 per hour), while value added per employment was RM14,756 (Q2 2022: RM12,542 per person).

Mining and quarrying

In Mining and quarrying sector, labour productivity expressed as value added per hour worked rebounded to 4.2 per cent (Q2 2022: -5.1%), year-on-year as value added for this sector expanded to 9.2 per cent and total hours worked increased 4.8 per cent. Similarly, labour productivity by value added per employment rebounded to 8.8 per cent (Q2 2022: -2.2%) as employment increased marginal at 0.4 per cent. In terms of labour productivity level, the value added per hour worked and value added per employment were RM508.3 (Q2 2022: RM527.9 per hour) and RM305,891 (Q2 2022: RM310,885 per person), respectively.

Manufacturing

In  the  third  quarter  2022,  labour  productivity  in  terms  of  value  added  per  hour  worked  improved  at  1.4  per  cent  (Q2 2022: -1.9%), year-on-year as value added continued to strengthen at 13.2 per cent and total hours worked increased 11.6 per cent (Q2 2022: 11.3%). Four sub-sectors that posted the highest increases in productivity per hour worked were Beverages and tobacco products (45.1%), Transport equipment, other manufacturing and repair (20.2%), Electrical, electronic and optical products (5.7%), and Textiles, wearing apparel and leather products (1.5%). Labour productivity by value added per employment improved at 8.2 per cent (Q2 2022: 4.0%) as employment rose 4.5 per cent (Q2 2022: 4.9%). Four sub-sectors that posted double-digit increases were Beverages and tobacco products (49.0%), Transport equipment, other manufacturing and repair (27.1%), Wood products, furniture, paper products and printing (13.2%), and Electrical, electronic and optical products (11.5%). In terms of level, labour productivity measured as value added per hour worked was RM58.1 (Q2 2022: RM56.2 per hour), while value added per employment was RM33,935 (Q2 2022: RM32,964 per person).

Construction

Year-on-year, value added per hour  worked  for  Construction  sector  fell  2.1  per  cent,  however  better  than  a  quarter  ago  (Q2 2022: -5.2%). Value added for this sector expanded to 15.3 per cent (Q2 2022: 2.4%). Meanwhile, labour productivity measured as value added per employment surged 14.9 per cent (Q2 2022: 2.9%) as employment increased marginal, 0.3 per cent. Value added per hour worked was RM16.6 (Q2 2022: RM15.9 per hour), while value added per employment for this sector was RM9,881 (Q2 2022: RM9,351 per person).

Services

During the quarter, labour productivity expressed as ratio of value added per hour worked increased 6.0 per cent (Q2 2022: 4.0%), year-on-year as value added for this sector soared 16.7 per  cent  and  total  hours  worked  went  up  by  10.1  per  cent.  Four sub-sectors that posted double-digit growth were Food & beverages and accommodation (40.3%), followed by Real estate and business services (23.7%), Transportation & storage (20.2%), and Wholesale & retail trade (10.8%). In the meantime, labour productivity per employment for Services sector surged 11.4 per  cent  (Q2 2022: 7.5%)  as  employment  increased 4.8 per cent (Q2 2022: 4.2%). Four sub-sectors that posted double-digit growth were Food & beverages and accommodation (43.7%), followed by Real estate and business services (29.0%), Transportation & storage (27.1%), and Wholesale & retail trade (18.0%). In the third quarter 2022, level of value added per hour worked for Services sector was RM40.0 (Q2 2022: RM38.7 per hour), while value added per employment was RM22,758 (Q2 2022: RM22,016 per person).

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

Released by:

DEPARTMENT OF STATISTICS, MALAYSIA

17 November 2022

Contact person:

Baharudin Mohamad
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : baharudin[at]dosm.gov.my

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Baharudin Mohamad

Public Relation Officer

Email: baharudin[at]dosm.gov.my

Phone: 03 8885 7942

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