KUALA LUMPUR – Malaysia’s labour productivity improved with a smaller decline of 2.2% in the third quarter of 2020 (Q3 2020) compared to negative 16.0% in Q2 2020, said the Department of Statistics Malaysia (DOSM).
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said Malaysia’s labour productivity in Q3 2020 registered a mild decline of 2.2% 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% from the double-digit contraction of 17.1% in Q2 2020.
"Following the reopening of more businesses during the quarter, employment decreased marginally by 0.4% to 15.1 million persons (Q2 2020: 14.9 million persons, -1.3%)," 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%, recording 8.5 billion hours against negative 28.2% (6.2 billion hours worked) in the previous quarter.
"Hence, labour productivity by value-added per hour worked grew marginally 0.1% with a value of RM41 per hour after registering an increase of 15.5% (RM46 per hour) in Q2 2020,” he said.
By economic sector, labour productivity by value-added per employment in manufacturing rebounded to 3.6% from negative 17.3% in Q2 2020.
Agriculture, which was the only sector that recorded a positive growth of labour productivity in Q2 2020 (1.6%), moderated to 0.3% 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% (Q2 2020: 15.2 per cent) and 0.6% (Q2 2020: 16.1%), respectively.
Construction continued to decline for three consecutive quarters, recording the highest fall of 9.0%. In the meantime, labour productivity for mining & quarrying fell 4.5% while services decreased by 1.4%.
“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. – Bernama, November 19, 2020
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