Malaysia's Labour Productivity

Malaysia’s  labour  productivity  measured  as  value  added  per  hour  worked  improved  1.9 per cent  (Q3 2022: 3.8%), year-on-year, as the country’s economy expanded 7.0 per cent for this quarter (Q3 2022 : 14.2%), while total hours worked went up 5.0 per cent (Q3 2022: 10.0%). In terms of level, labour productivity by value added per  hour  worked  was  RM43.1  (Q3 2022: RM42.5 per hour). Total hours worked in the fourth quarter of 2022 was 9.2 billion (Q3 2022: 9.0 billion hours). Labour productivity as expressed by value added per employment rose 3.6 per cent (Q3 2022: 10.2%), year on year, as total employment increased 3.2 per cent (Q3 2022: 3.6%). In terms of level, value added per employment was RM24,915 (Q3 2022: RM24,242 per person). Total employment in the fourth quarter of 2022 was 15.9 million (Q3 2022: 15.8 million persons). Overall for 2022, labour productivity as expressed by value added per hour worked rebounded 1.8 per cent with a level of RM41.7 per hour as compared to 2021 (-2.6%, RM41.0 per hour). Meanwhile, labour productivity measured as value added per employment rose 5.4 per cent to record value a level of RM95,628 per person as compared to 2021 (1.8%, RM90,697 per person).

Agriculture

Labour productivity per hour worked in Agriculture sector fell 0.6 per cent, year-on-year, however improved as compared to the previous quarter (Q3 2022: -0.8%). Value added for this sector posted an increase of 1.1 per cent (Q3 2022: 1.2%). Meanwhile, labour productivity by value added per employment for this sector increased 1.6 per cent in the fourth quarter of 2022 (Q3 2022: 1.9%), while employment fell marginal 0.5 per cent. In the fourth quarter 2022, level of value added per hour worked for this sector was RM25.2 (Q3 2022: RM27.3 per hour), while value added per employment was RM13,679 (Q3 2022: RM14,766 per person). Labour productivity measured as value added per hour worked in 2022 decreased 1.2 per cent with a level of RM24.7 per hour as compared to 2021 (-4.6%, RM25.0 per hour). Meanwhile, labour productivity in terms of value added per employment rose marginal 0.7 per cent to record a level of RM53,173 as compared to 2021 (-0.6%, RM52,786 per person).

Mining and quarrying

For Mining and quarrying sector, labour productivity measured as value added per hour worked  increased  4.7  per  cent  (Q3 2022: 4.2%), year-on-year, as value added for this sector expanded 6.8 per cent and hours worked increased 2.0 per cent. Labour productivity by added value per employment also recorded an increase of 6.5 per cent (Q3 2022: 8.8%) as employment increased marginal at 0.3 per cent. In terms of labour productivity level, the value added per hour worked and value added per employment were RM557.3 (Q3 2022: RM508.3 per hour) and RM334,940 (Q3 2022: RM305,891 per person), respectively. In 2022, labour productivity expressed as the ratio of value added to hours worked for Mining and quarrying sector marginally decreased 0.4 per cent with a level of RM531.1 per hour as compared to 2021 (-3.8%, RM533.3 per hour). Meanwhile, labour productivity as measured by value added per employment recovered to 2.2 per cent to record a level of RM1,269,266 as compared to 2021 (-1.4%, RM1,242,406 per person).

Manufacturing

In the fourth quarter of 2022, labour productivity in terms of value added per hour worked for Manufacturing sector marginally improved at 0.4 per cent (Q3 2022: 1.4%), year-on-year, with value added growth at 3.9 per cent and hours worked 3.6 per cent. Three sub-sectors that recorded an increase in productivity per hour worked were Electrical, electronic and optical products (3.7%); Non-metallic mineral products, basic metal and fabricated metal products (1.3%); and Textiles, wearing apparel and leather products (1.1%). Labour productivity by value added per employment improved at 1.6 per cent (Q3 2022: 8.2%), while employment rose 2.3 per cent (Q3 2022: 4.5%). Four sub-sectors that posted double-digit increases were Electrical, electronic and optical products (5.0%); Textiles, wearing apparel and leather products (2.8%); Non-metallic mineral products, basic metal and fabricated metal products (0.8%); and Vegetable and animal oils and fats and food processing (0.5%). In terms of level, labour productivity as measured by value added per hour worked was RM58.5 (Q3 2022: RM58.1 per hour), while value added per employment was RM34,854 (Q3 2022: RM33,935 per person). The growth of labour productivity expressed as value added per hour worked in 2022 for Manufacturing sector marginally decreased 0.1 per cent with a level of RM57.0 per hour as compared to 2021 (3.1%, RM57.0 per hour). Meanwhile, labour productivity in terms of value added per employment rose 4.1 per cent to record a level of RM134,046 as compared to 2021 (6.8%, RM128,807 per person).

Construction

Year-on-year, value added per hour worked for Construction sector recovered 8.0 per cent (Q3 2022: -2.1%). Value added for this sector expanded 10.1 per cent and total employment increased 1.9 per cent. Meanwhile, labour productivity as measured by value added per employment sustained a double digit growth of  10.0 per cent (Q3 2022: 14.9%), with marginal increase in employment at 0.02 per cent. Value added per hour worked for this sector was RM16.8 (Q3 2022: RM16.6 per hour), while value added per employment was RM9,992 (Q3 2022: RM9,881 per person). In 2022, labour productivity expressed as value added per hour worked fell 2.0 per cent with a level of RM16.2 per hour as compared to 2021 (-8.3%, RM16.5 per hour). Meanwhile, labour productivity measured as value added of employment improved 5.2 per cent to record a value of RM38,575 as compared to 2021 (-4.3%, RM36,669 per person).

Services

During the quarter, labour productivity expressed as ratio of value added per hour worked  for  Services  sector  increased  2.3 per cent (Q3 2022: 6.0%), year-on-year, as value added expanded 8.9 per cent  and  hours  worked  increased  6.4  per  cent.  Two sub-sectors that posted double digit growth were Food & beverages and accommodation (19.0%); and Real Estate and business services (16.7%), followed by positive growth in subsector of Transportation and storage (9.0%); Finance and insurance (6.5%); Wholesale and retail trade (1.7%); and Other services (0.2%). Meanwhile, labour productivity per employment for Services sector increased 4.0 per cent (Q3 2022: 11.4%), with an increase in total employment of 4.7 per cent. Three sub-sectors that posted double digit growth were Real estate and business services (21.7%); Food & beverages and accommodation (16.4%); and Transportation and storage (11.9%), followed by positive growth in the subsectors of Wholesale and retail trade (4.8%); Other services (1.8%); Information and communication (0.7%); and Finance and insurance (0.1%). In terms of level, labour productivity measured as value added per hour worked in fourth quarter 2022 was RM40.8 (Q3 2022: RM40.0 per hour), while value added per employment was RM23,519 (Q3 2022: RM22,758 per person). For the overall of 2022, labour productivity as measured by value added per hour worked for Services sector increased 3.3 per cent to a level of RM39.4 per hour as compared to 2021 (-4.2%, RM38.2 per hour). Meanwhile, labour productivity expressed as value added per employment rose 6.5 per cent to record a level of RM90,236 as compared to 2021 (0.5%, RM84,716 per person).

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

Released by:

DEPARTMENT OF STATISTICS MALAYSIA
16 February 2023

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