Labour productivity up 10% in 3Q

KUALA LUMPUR: Labour productivity, expressed as value added per worker, jumped 10.1% in the third quarter of 2022 (3Q) versus 5.5% in 2Q, which is in line with the strong economic activities which saw gross domestic product (GDP) strengthening by 14.2%, according to the Statistics Department.

Total workers for 3Q rose 3.6% against 3.2% in 2Q, recording value added per worker of RM24,241.

“Labour productivity, measured by value added per hour worked, rose almost threefold to 3.8% versus 1.3% in 2Q 2022.

‘’Total hours worked rose 10% against 7.5% in 2Q to record nine billion hours (Q2 2022: 8.9 billion hours), in line with the expansion of the economic performance based on various indicators including the latest data for the month of September 2022,’’ it said.

On an economic sector basis, all sectors saw an increase in productivity in 3Q with the construction sector posting the highest value added per worker at 14.9%.

The services sector also recorded double-digit productivity growth at 11.4%, with all its sub-sectors achieving positive growth, with the food and beverage and accommodation sub-sector posting the highest growth at 43.7%.

Manufacturing sector’s labour productivity grew 8.2% in 3Q22, with beverages and tobacco products sub-sector posting the highest growth of 49%.

This was followed by the transport equipment, other manufacturing and repair sub-sector at 30.5%; wood products, furniture, paper products and printing at 13.2% and electrical, electronic and optical products at 11.5%.

Still at 3Q, labour productivity by value added per worker for mining and quarrying, and agriculture sectors, recovered positively with growth of 8.8% and 1.8% respectively.

Measuring productivity on a value-added per-hour basis, services grew the highest at 6% followed by mining and quarrying at 4.2% and manufacturing at 1.4%

‘’The revival of economic and social activities, supported by improved job market conditions and incomes, has translated into stronger economic growth.

‘’In line with the positive developments, the labour market is also expected to continue to be resilient in the following months,’’ said the Statistics Department.