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Labour Productivity of Third Quarter 2020

Release Date : Thursday 19, November 2020 1200

Labour  Productivity  for  Malaysia  as  measured  by  value added per  hour worked  grew  marginally by  0.1 per cent  (Q2 2020: 15.5%). During this quarter, the Gross Domestic Product decreased at a slower rate of 2.7 per cent (Q2 2020: -17.1%). Similarly,  total  hours  worked  in  this  quarter  posted negative  2.7 per cent  from  negative  28.2 per cent  in  the  second  quarter. In Q3 2020, labour productivity expressed in terms of value added per employment recorded a smaller negative of 2.2 per cent as compared to negative 16.0 per cent in Q2 2020 while employment declined 0.4 per cent (Q2 2020: -1.3%). Labour productivity by value added per hour worked in Q3 2020 amounted to RM41 per hour (Q2 2020: RM46 per hour) while value added per employment was RM23,248 per person (Q2 2020: RM19,446 per person).

Labour productivity per hour worked for Agriculture sector grew marginally  0.6 per cent  in  Q3 2020  after  registering  16.1 per cent in  Q2 2020.  The  value added  in this quarter decreased 0.7 per cent  (Q2 2020: 1.0%) while hours worked improved to a negative 1.2 per cent (Q2 2020: -13.0%). The third quarter’s labour productivity by value added per employment for this sector was 0.3 per cent  after  recorded  a  growth of 1.6 per cent in Q2 2020.  Moreover, employment posted a small decline of 0.9 per cent (Q2 2020: -0.5%).  Labour  productivity  by  value  added  per hour worked for Agriculture sector  was  RM28  per  hour  (Q2 2020: RM29 per hour) while value added per employment was RM14,849 per person (Q2 2020: RM13,244 per person).

Mining  and  quarrying  sector  recorded  a  decline  of  4.5  per  cent  in  labour  productivity  by  hours  worked  as  compared to 6.9 per cent in the  previous  quarter. The value added for  this  sector  continued  its declining  trend of  6.8 per cent  (Q2 2020: -20.0%)  while  hours  worked  recorded  a negative  of  2.4 per cent (Q2 2020: -25.1%).  On the other hand,  employment dropped by 2.3 per cent (Q2 2020: -3.5%). Labour productivity by value added per employment for this sector decreased  4.6 per cent  (Q2 2020: -17.1%) which was an improvement. Labour productivity which measured as value added per hour worked expressed in terms of level, was RM459 per hour (Q2 2020: RM602 per hour) while value added per employment was RM278,831 per person (Q2 2020: RM280,302 per person).

Labour productivity as measured by value added per hour worked for Manufacturing sector rose 6.9 per cent (Q2 2020: 15.2%). In the meantime, the value added for this sector rebounded 3.3 per cent after recorded negative 18.3 per cent in previous quarter while hours worked dropped 3.4 per cent (Q2 2020: -29.1%). The highest growth of labour productivity by hours worked in Manufacturing sector registered by Electrical, electronic and optical products (11.6%). This was followed by Transport equipment, other manufacturing and repair (11.4%) and Vegetable and animal oils & fats and food processing (10.9%).  The  growth of  labour  productivity  for  value  added   per  employment  increased  at  a  faster  rate  of  3.6  per  cent   (Q2 2020: -17.3%). Employment for this sector decreased 0.3 per cent (Q2 2020: -1.3%). Value added per hour worked for Manufacturing sector was RM56 per hour in Q3 2020 (Q2 2020: RM60 per hour) while value added per employment was RM32,485 per person (Q2 2020: RM25,739 per person).

Labour productivity by  hours  worked  in  construction  sector  declined  further  to  negative  9.0 per cent  in  Q3 2020  (Q2 2020: -3.2%). The growth of value added for this sector contracted 12.4 per cent (Q2 2020: -44.5%) while hours worked improved to negative 3.8 per cent (Q2 2020: -42.7%). Labour productivity measured as value added per employment by this sector decreased 10.2 per cent from negative 40.8 per cent in the preceding quarter. In addition, employment declined by 2.4 per cent (Q2 2020: -6.3%). In terms of labour productivity level, value added per hour worked for this sector, remained at RM18 per hour (Q2 2020: RM18 per hour) while value added per employment was RM10,583 per person (Q2 2020: RM6,536 per person).

Labour productivity by hours worked for Services sector plunged 1.4 per cent in this quarter (Q2 2020: 17.1%). Value added of this sector remained subdued at negative 4.0 per cent (Q2 2020: -16.2%) while hours worked  declined  2.7  per  cent  (Q2 2020: -28.5%). During this quarter, Finance and insurance registered the highest growth of labour productivity by hours worked with a growth of 7.6 per cent. This was followed by Information and Communication (1.8%) and Wholesale and retail trade (0.3%). Meanwhile, labour productivity expressed as the ratio of value added to employment decreased 3.9 per cent (Q2 2020: -15.7%) while employment declined marginally 0.1 per cent (Q2 2020: -0.6%). Value added per hour worked for this sector in Q3 2020 was RM38 per hour (Q2 2020: RM44 per hour) while value added per employment was RM21,749 per person (Q2 2020: RM18,413 per person). 

 

 

 

 

Released By:

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

19 November 2020

 

Contact person:

Mohd Yusrizal Ab Razak
Public Relation Officer
Strategic Communication and International Division
Department of Statistics, Malaysia
Tel : +603-8885 7942
Fax : +603-8888 9248
Email : yusrizal.razak[at]dosm.gov.my

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