Labour output remains at 2.4% in 2Q19

Most sectors registered a growth of labour productivity lower than the previous quarter but with higher value addition during 2Q19

by NUR HAZIQAH A MALEK/ pic by MUHD AMIN NAHARUL

MALAYSIA’S labour productivity as measured by value-added per hour worked, remained at 2.4% in the second quarter of 2019 (2Q19).

According to the Department of Statistics Malaysia, the country’s economy expanded 4.9% against the prior expansion of 4.5%, while hours worked increased by 2.4% against the preceding period’s growth of 2%.

“In the meantime, labour productivity expressed in terms of value-added per employment registered a growth of 2.8% compared to 2.2% in 1Q19 as employment increased to 2.1%,” it said in a statement yesterday.

The department also said most sectors registered a growth of labour productivity lower than the previous quarter, but with higher value addition during 2Q19.

In the agriculture sector, labour productivity by hours worked increased 2.2% in the 2Q against the 3% growth in 1Q19.

“In terms of value added, this sector grew 4.2% against the 5.6% growth in the last quarter, while hours worked rose 1.9%, lower than 2.5% recorded in 1Q19.

“In this quarter, labour productivity by employment grew 2.1% compared to 3.4% in the preceding quarter as employment increased 2%, slightly lower than 2.2% recorded in 1Q19,” it said.

The labour productivity by hours worked for the manufacturing sector was 2.5% compared to 3.4% recorded in the previous quarter.

In 2Q19, value added of the sector expanded 4.3% versus the previous 4.2%, while hours worked increased by 1.8%, versus the 0.7% growth recorded in the preceding quarter.

“The highest growth of labour productivity in the manufacturing sector was recorded by wood products, furniture, paper products and printing with 7.1% growth.

“This was followed by textiles, apparel and leather products (5.7%), transport equipment, other manufacturing and repair (4.4%),” it said. The construction sector posted a growth of labour productivity by hours worked at 3.3%, slightly lower than the previous quarter’s 4.5%.

“Labour productivity by employment rose 3.2% from 4.5% in the preceding quarter as employment dropped 2.6%,” it said.

In the services sector, labour productivity by hours worked posted a growth of 2.5% against 2.9% in 1Q19.

Its added value’s growth declined to 6.1% against 6.4%, while hours worked increased by 3.6% against the previous quarter’s 3.4%.

During this quarter, the real estate and business services recorded the highest growth of labour productivity in the services sector at 4.7%. This was followed by finance and insurance (4.6%), as well as transportation and storage (3.7%), the department said.

Against employment, labour productivity in the services sector registered a growth of 3% compared to 2.9% in 1Q19 as employment increased by 3%.

The mining and quarrying sector, however, continued its negative growth of labour productivity by hours worked at -0.7% against -0.8% in the previous quarter.

“In terms of labour productivity by employment, this sector posted a growth of 1.4% as employment increased 1.4% against -4.6% previously,” it said.