KUALA LUMPUR: Malaysia’s labour productivity, measured as value added per employment, turned around to record a 13.6% growth from a year ago due to the low base then.
Chief Statistician Malaysia, Datuk Seri Dr Mohd Uzir Mahidin said on Wednesday after five consecutive quarters of decline trends, Malaysia’s labour productivity rebounded to 13.6% (1Q 2021: -0.4%) with a value of RM22,117 per person (Q1 2021: RM22,513 per person).
“The strong growth was also attributed by the lower base registered a year ago which was negative 16.1% (RM19,467 per person). However, in comparison with the preceding quarter, the labour productivity declined in 2Q, recording a smaller contraction of 1.8% (1Q, 2021: -4.6%),” he said in a statement.
Mohd Uzir said the total hours worked in 2Q rose by 33.2% (1Q21: -0.8%) to record 8.3 billion hours worked (1Q21: 8.5 billion hours). This had resulted the labour productivity by value added per hour worked falling by 12.8% (1Q21: 0.4%) with a value of RM40.5 per hour (1Q21: RM40.2 per hour).
The decline in labour productivity in 2Q21 was due to a larger increase in total hours worked than growth rate in value added.
In addition, the total hours worked in 2Q21 was the second lowest after 2Q20 (6.2 billion hours worked) due to the constraint of business operation hours following the stringent containment measures imposed.”
In 2Q21, Malaysia’s economy rose 16.1% on-year from negative 0.5% in 1Q21 while employment which recorded a total of 15.2 million persons, improved by 2.2% versus a contraction of 0.04% in 1Q21.
He said labour productivity by value added per employment for all economic sector registered a double-digit growth in 2Q except for agriculture sector.
Labour productivity in construction rebounded turned to 37.6% compared with a contraction of 8.2% in 1Q21.
Mohd Uzir said the manufacturing sector continued to strengthen at 23.2% (1Q21: 5.5%) propelled by strong growth in all sub-sectors except for vegetable and animal oils & fats and food processing sub-sector.
The highest growth in labour productivity in this sector was recorded by the sub-sector of beverages & tobacco products (55.7%), followed by wood products, furniture, paper products & printing (41.8%) and transport equipment, other manufacturing & repair (39.3%).
Labour productivity in the mining & quarrying and services sectors rebounded 14.1% (1Q21: -4.2%) and 11% (1Q21: -2.4%) respectively.
Mohd Uzir said three Services sub-sectors that posted significant growth were transportation & storage (37.3%), finance & insurance (24.6%) and wholesale & retail trade (19.4%).
On the contrary, labour productivity in agriculture sector declined by 3.3% in 2Q21 from a positive growth of 0.9% in 1Q21.
As for labour productivity by value added per hour worked, all economic sectors saw a decline in 2Q21.
The manufacturing sector dropped 4.2% versus positive growth of 8.1% in 1Q21. In the meantime, mining & quarrying and construction sectors continued to decline by 7.1% 1Q21: -2.6%) and 7.8% (Q1 2021: -8.6%) respectively.
Meanwhile, agriculture recorded a contraction of 15.6% and services (-15.9%).
Mohd Uzir Mahidin said the ability of businesses to adopt and keep up with the digitalisation and technological advancement will elevate the efficiency and subsequently business growth in the long run.
“By adopting the automation and coupled with the retrained and upskilled existing workers may optimise productivity and create resilient economic growth,” he said.
Labour productivity valued added per employment
Infographic of the labour productivity 2Q21
