Lower labour productivity growth in 3Q19

• Labor productivity grew to 2.3% in 3Q19

• Total employment rose by 2.1% yoy in 3Q19

• Mining sector recorded negative productivity

• Employment in construction sector remains weak

• Lower labour productivity could pose more economic challenges

Malaysia’s labour productivity stated as a ratio of value added per employment, or output per labour, recorded a growth of 2.3% in 3Q19 (2Q19: 2.8%) as employment sustained at 2.1% (2Q19: 2.1%). Meanwhile, labour productivity as measured by value added per hour worked rose 2.6% in 3Q19 after registering 2.4% in the preceding quarter. During this quarter, Malaysia’s GDP posted a growth of 4.4% yoy (2Q19: 4.9%) while hours worked increased 1.7% against 2.4% in 2Q19.

In 3Q19, both services and manufacturing sectors recorded the highest growth of labour productivity by hours worked at 2.9% while the highest growth of labour productivity by employment was registered by services sector at 2.7%.

Source: BIMB Securities Research - 22 Nov 2019