KUALA LUMPUR: The Department of Statistics has revealed that the labour productivity per employment has dropped to 0.8 per cent in the first quarter of the year.
Statistician chief Datuk Seri Dr Mohd Uzir Mahidin said the national labour productivity declined to 0.8 per cent from 1.4 per cent in the fourth quarter of last year with value added per employment was at RM22,578 per person in the first quarter of 2020 compared to RM24,263 last year.
"Despite slower economic performance at 0.7 per cent, employment has increased 1.6 per cent in the fourth quarter of 2019 or 2.2 per cent, which recorded 15.2 million persons in the first quarter of this year compared to 15.3 million persons last year.
"Meanwhile, Malaysia's labour productivity for the first quarter this year as measured by value added per hour worked, rose 2.1 per cent with a value of RM40 per hour. The increase in labour productivity by hours worked in this quarter was due to larger decline in hours worked as against moderation in the output produced," he said in a statement today.
Mohd Uzir said the implementation of the first phase of the Movement Control Order (MCO) on March 18 to contain the Covid-19 pandemic caused a decline in total hours worked during this quarter.
"Average hours worked in this quarter was only 44.3 hours per week compared to 45.0 hours per week in the fourth quarter of last year.
"Value added which indicates domestic output of goods and services produced grew marginally at 0.7 per cent in the first few months of 2020 as compared to 3.6 per cent in the preceding quarter."
He added that in addition to slower global demand, the unprecedented event had affected the nation's economy.
Mohd Uzir said the decline in labour productivity per employment was due to most industries retaining their employment despite moderated growth in production.
"Despite the economic shock, industries with high technology were able to maintain their productivity and business. Capital intensive industries with adoption of automation are more resilient and thus higher labour productivity as compared to labour intensive industries.
"In this regard, industries should leverage on this crisis to reassess existing business structure by innovating towards a new normal of doing business.
"It is an appropriate turning point for industry to embrace technological changes brought forward by Industrial Revolution 4.0 to move up the value chain and to achieve higher productivity.
"The crisis should also be a turning point in reducing dependence on semi-skilled and low-skilled jobs," he said.