Overview

MALAYSIA’S LABOUR PRODUCTIVITY

In the third quarter of 2024, labour productivity per hour worked increased 2.6 per cent (Q2 2024: 2.5%) with value added per hour worked at RM43.3 per hour (Q2 2024: RM41.7 per hour), as the economy grew 5.3 per cent (Q2 2024:  5.9%),  meanwhile  total  hours  worked  rose  2.7  per  cent  (Q2  2024:  3.4%)  to  register  9.7  billion  hours  (Q2  2024: 9.6 billion hours). Labour productivity per employment grew 2.4 per cent (Q2 2024: 3.1%) to record  value  added  per  employment  at  RM25,077  per  person  (Q2  2024:  RM24,154  per  person),  while  total  employment  increased  2.9 per cent (Q2 2024: 2.8%) to register 16.7 million persons (Q2 2024: 16.6 million persons) in during this quarter.

AGRICULTURE

Labour productivity per hour worked for Agriculture sector increased 4.1 per cent, showed a smaller increase as compared to the previous quarter (Q2 2024: 6.0%). The value added for this sector demonstrated an increase of 3.9 per cent after registering 7.3 per cent in the preceding quarter, while total hours worked declined  at  negative  0.2  per  cent  (Q2  2024:  1.3%)  with  average  hours  worked  decreased  at  a  negative  1.3 per cent, to record 41.7 hours per week (Q2 2024: 0.3%; 42.0 hours per week). Meanwhile, in the third quarter of 2024, labour productivity by value added per employment for this sector increased 2.9 per cent (Q2 2024: 6.2%), with total employment rose 1.0 per cent  to  record  1,907  thousand  persons  (Q2 2024: 1.1%; 1,897 thousand persons). In the third quarter 2024, value added per hour worked for this sector was RM28.2 per hour (Q2 2024: RM24.4 per hour), while value added per employment was RM15,275 per person (Q2 2024: RM13,292 per person).

MINING & QUARRYING

For  Mining  and  quarrying  sector,  labour  productivity  measured  as  value  added  per  hour  worked  posted  a  decline  at a negative 5.7 per cent (Q2 2024: 3.7%) as value  added  for  this  sector  decreased  at  negative  3.9 per cent (Q2 2024: 2.7%) during this quarter. Meanwhile,  the  total  hours  worked  experienced  a  growth  of  1.9 per cent (Q2 2024: -1.0%), with the average hours worked exhibited an increase of 1.6 per cent, registering 47.9 hours per week (Q2 2024: -1.5%, 46.8 hours per week). Labour productivity by value added per employment for this sector also declined at a negative 4.0 per cent (Q2 2024: 2.5%) as employment increased 0.1 per cent (Q2 2024: 0.2%), reaching 76.4 thousand persons (Q2 2024: 76.5 thousand persons) in the third quarter of 2024. In terms of level, labour productivity expressed as value added per hour worked and value added per employment for this sector were RM475.5 per hour (Q2 2024: RM514.9 per hour) and RM291,136 per person (Q2 2024: RM311,331 per person), respectively, during this quarter.

MANUFACTURING

In the third quarter 2024, the Manufacturing sector posted an increase in labour productivity per hour worked at 3.4 per cent (Q2 2024: 2.9%)  with  the  growth  of  value  added  at  5.6  per  cent  (Q2  2024:  4.7%).  Meanwhile,  total  hours  worked  increased  2.1  per  cent  (Q2  2024:  1.7%),  with  average  hours  worked  increased  0.8  per  cent  to  post  46.1  hours  per week (Q2 2024: -0.2%; 45.8 hours per week). The growth in labour productivity per hour worked for Manufacturing sector was attributed to an increment in four of its sub-sectors, namely Wood products, furniture, paper products and printing (9.3%); Non-metallic mineral products, basic metal and fabricated metal products (7.7%); Electrical, electronic and optical products (5.5%); and  Vegetable and animal oils & fats and food processing (4.3%), while the other four sub-sectors recorded negative growth, namely Beverages and tobacco products (-2.3%); Transport equipment, other manufacturing and repair (-2.3%); Petroleum, chemical, rubber and plastic product (-1.1%); and Textiles, wearing apparel and leather products (-0.02%). Meanwhile, labour productivity by value added per employment rose 4.1 per cent (Q2 2024: 3.1%) for this sector, with total employment increased 1.4 per cent to record 2,853 thousand persons (Q2 2024: 1.6%; 2,825 thousand persons) in the third quarter of 2024. The expansion in labour productivity per employment for the Manufacturing sector was contributed by positive growth across all of its sub-sectors, including Beverages and tobacco products (7.4%); Non-metallic mineral products, basic metal and fabricated metal products (6.5%); Wood products, furniture, paper products and printing (5.8%); Electrical, electronic and optical products (5.7%); Vegetable and animal oils & fats and food processing (5.5%); Textiles, wearing apparel and leather products (3.2%); Petroleum, chemical, rubber and plastic products (2.0%), except for Transport equipment, other manufacturing and repair (-0.2%). Value  added  per  hour  worked  for  this  sector  was  RM57.2 per hour (Q2 2024: RM55.6 per hour), while value added per employment was RM34,150 per person (Q2 2024: RM33,054 per person) in the third quarter 2024.

CONSTRUCTION
In the third quarter of 2024, labour productivity per hour worked for Construction sector continued to increase at 20.1 per cent (Q2 2024: 19.1%), with value added expanded  19.9  per  cent  (Q2  2024:  17.3%).  In the meantime, total hours worked for this sector declined at a negative 0.2 per cent (Q2 2024: -1.5%), with average hours worked decreased at a negative 0.8 per cent to post  45.9  hours  per  week  (Q2 2024: -2.3%;  45.2 hours per week). Meanwhile, labour productivity as measured by value added per employment continued to increase at 18.9 per cent (Q2 2024: 16.3%)  for  this  sector,  with  a  rise  in  employment  at  0.9 per cent (Q2 2024: 0.8%) to register 1,410 thousand persons (Q2 2024: 1,408 thousand persons) during this quarter. In the third quarter 2024, value added per hour worked for this sector was RM20.9 per hour (Q2 2024: RM19.6 per hour), while value added per employment was RM12,423 per person (Q2 2024: RM11,466 per person).

SERVICES

During this quarter, labour productivity expressed as value added per hour worked for Services sector increased 1.4 per cent (Q2 2024: 0.9%), as value added grew 5.2 per cent (Q2 2024: 5.9%),  while  total  hours  worked  increased  3.8 per cent (Q2 2024: 4.9%), with average hours worked declined at a negative 0.2 per cent to post 44.7 hours per week (Q2 2024: 1.4%; 44.9 hours per week). The growth in labour productivity per hour worked for the Services sector was contributed by the subsector of Real estate and business services (7.6%), Transportation and storage (7.6%), Other services (2.4%); and Food & beverages and accommodation (1.1%), while the other four sub-sectors recorded negative growth, namely Finance and insurance (-1.6%); Utilities (-1.2%); Information and communication (-0.5%); and Wholesale and retail trade (-0.3%). In the meantime, labour productivity per employment for Services sector rose 1.2 per cent (Q2 2024: 2.2%) in this quarter, with an increase in total employment of 3.9 per cent (Q2 2024: 3.7%), reaching 10,468 thousand persons (Q2 2024: 10,385 thousand persons). The positive growth in the labour productivity per employment for the Services sector was due to increment in most of its sub-sectors, namely Real estate and business services (6.4%); Transportation and storage (5.5%); Other services (3.1%); Finance and insurance (1.5%); Information and communication (0.6%); Wholesale and retail trade (0.4%), except for Utilities (-2.7%);  and  Food  &  beverages  and  accommodation  (-0.8%).  In terms of level, labour productivity measured as value added per hour worked in third quarter of 2024 for this  sector  was  RM40.9  per  hour  (Q2  2024:  RM39.4  per  hour), while  value  added  per  employment  was  RM23,647  per person (Q2 2024: RM22,875 per person).

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