Stats Dept: Malaysia’s labour productivity improves in Q3, aided by longer business operation hours

20-Nov-2020 Intellasia | Malay Mail | 6:02 AM Print This Post

Malaysia’s labour productivity improved with a smaller decline of 2.2 per cent in the third quarter of 2020 (Q3 2020) compared to negative 16.0 per cent in Q2 2020, said the Department of Statistics Malaysia (DOSM).

Chief Statistician Datuk Seri Mohd Uzir Mahidin said Malaysia’s labour productivity in Q3 2020 registered a mild decline of 2.2 per cent at RM23,248 per person (Q2 2020: RM19,446 per person).

“During this quarter, gross domestic product (GDP) decreased at a slower rate of 2.7 per cent from the double-digit contraction of 17.1 per cent in Q2 2020.

“Following the reopening of more businesses during the quarter, employment decreased marginally by 0.4 per cent to 15.1 million persons (Q2 2020: 14.9 million persons, 1.3 per cent),” he said in a statement in conjunction with the release of the Labour Productivity report, Third Quarter 2020, today.

The figures in the report were published by economic activity, expressed as value added per employment and value added per hour worked.

Commenting on the labour productivity denoted in the report, Mohd Uzir said longer business operation hours in Q3 2020 resulted in total hours worked to decline at a slower rate of 2.7 per cent, recording 8.5 billion hours against negative 28.2 per cent (6.2 billion hours worked) in the previous quarter.

“Hence, labour productivity by value added per hour worked grew marginally 0.1 per cent with a value of RM41 per hour after registering an increase of 15.5 per cent (RM46 per hour) in Q2 2020,” he said.

By economic sector, labour productivity by value added per employment in manufacturing rebounded to 3.6 per cent from negative 17.3 per cent in Q2 2020.

Agriculture, which was the only sector that recorded a positive growth of labour productivity in Q2 2020 (1.6 per cent), moderated to 0.3 per cent in Q3 2020.

Labour productivity for other sectors remained sluggish with construction posting the highest decline of 10.2 per cent, followed by mining & quarrying (-4.6 per cent) and services (-3.9 per cent).

In terms of labour productivity by value added per hour worked, he said, the manufacturing and agriculture sectors continued to record positive growth in the previous quarter, albeit at slower rates of 6.9 per cent (Q2 2020: 15.2 per cent) and 0.6 per cent (Q2 2020: 16.1 per cent), respectively.

Construction continued to decline for three consecutive quarters, recording the highest fall of 9.0 per cent. In the meantime, labour productivity for mining & quarrying fell 4.5 per cent while services decreased 1.4 per cent.

“As the country continues to contain the Covid-19 pandemic, businesses faced challenges of maintaining the right balance between ensuring continuity of business operations amid slower demand.

“While the businesses adjust their operation strategy, employees also need to adapt to the new normal.

“All of these would have an impact to the overall labour productivity. In this regards, the various stimulus packages provided by the government this year may ease the predicaments of all parties, including businesses and employees, and subsequently safeguard their sustainability,” he said.

https://www.malaymail.com/news/malaysia/2020/11/19/stats-dept-malaysias-labour-productivity-improves-in-q3-aided-by-longer-bus/1924115

 

Category: Malaysia

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