Home Malaysia Malaysia’s Labour Productivity Growth Fell 5.6% in Q3 2021

Malaysia’s Labour Productivity Growth Fell 5.6% in Q3 2021

The total hours worked in Q3 2021 dropped by 3.9 per cent to record 8.2 billion hours.

by Gopal Nair
Malaysia Labour Productivity Fell

Malaysia’s labour productivity as measured by value added per employment fell 5.6 per cent in Q3 2021 while quarter-on quarter improved with a smaller decline.

In Q3 2021, Malaysia’s economy recorded a contraction, declining by 4.5 per cent attributed by the downturn in all major economic sectors. During the quarter, employment increased modestly by 1.2 per cent year-on-year (Q2 2021: 2.2%) recorded a total of 15.3 million persons (Q2 2021: 15.2 million persons). Hence, labour productivity expressed as value added per employment dropped 5.6 per cent in Q3 2021 registering productivity value of RM21,985 per person (Q2 2021: RM22,128
per person). Nevertheless, in comparison with the previous quarter, the growth of labour productivity improved with a smaller decline of 0.6 per cent (Q2 2021: -1.7%)”.

In Q3 2020, the whole nation was in the phase of Recovery Movement Control Order where almost all economic sectors including social and educational sectors were operating. As a consequence, the total hours worked in Q3 2021 dropped by 3.9 per cent to record 8.2 billion hours (Q3 2020: 8.5 billion hours) and had resulted in labour productivity per hour worked to register a mild decline of 0.6 per cent (Q2 2021: -12.9%) with a value of RM40.9 per hour (Q2 2021: RM40.5 per hour).

From the economic sector point of view, all sectors experienced negative performance of labour productivity by value added per employment in this quarter. The Construction sector posted a largest dropped in labour productivity by 18.8 per cent (Q2 2021: 37.6%). In the meantime, the Services sector recorded a decline of 6.2 per cent (Q2 2021: 11.1%) with the largest decrease recorded by Food & Beverages and accommodation (-19.1%); followed by Real Estate & Business Services (-14.5%);
Wholesale & Retail Trade (-13.2%); and Transportation & Storage (-11.1%).

Similarly with the labour productivity performance in Manufacturing sector which declined 3.5 per cent as opposed to positive growth of 23.2 per cent in the previous quarter. Four Manufacturing sub-sectors that recorded a double digit decline namely Beverages & tobacco products (-41.2%); Transport equipment, other manufacturing & repair (-30.7%); Non-metallic mineral products, basic metal and fabricated metal products (-14.3%); and Wood products, furniture, paper products and printing (-12.7%). Labour productivity for Agriculture sector remained sluggish at negative 2.6 per cent (Q2 2021: -3.3%) while Mining & quarrying sector dropped 1.3 per cent from 14.1 per cent in the preceding quarter.

As for labour productivity by value added per hour worked, two sectors turned around in this quarter namely Mining & quarrying (4.1%) and Manufacturing (2.3%) sectors. On the contrary, the remaining sectors continued to decrease albeit at a smaller decline. Labour productivity in Construction and Agriculture sectors dropped by 5.7 per cent (Q2 2021: -7.8%) and 3.4 per cent (Q2 2021: -15.6%) respectively while Services sector posted negative 1.8 per cent as against negative 15.9 per cent in the preceding quarter.

You may also like

Leave a Comment