Total Hours Worked Surged By 4.2% In Q3 Of 2023

labour

Work productivity, as measured by value added per employment, increased by 0.6%, reaching RM24,465 per person.

With a rise in total hours worked, work productivity per hour fell by 0.9% to RM42.2 per hour in Q3 2023, showing decreasing labour market efficiency. This was one of the highlights of the Labour Market Review (LMR), Third Quarter 2023, announced on November 24, 2023 by the Department of Statistics Malaysia (DOSM).

The study examines the most current labour market developments in Malaysia and consolidates short-term labour market information. The statistics include:

• Labour supply,

• Demand,

• Productivity,

• Employee wages.

These are some of the highlights of the Q3 2023 LMR:

1. Labour supply

The labour supply remained solid, with the work force increasing by 2.3% year on year to 16.82 million people. As a result, the work force participation rate increased by 0.7 percentage points to 70.1%. Meanwhile, the number of jobless fell by 6.3%, resulting in a national unemployment rate of 3.4%, indicating a steady return to pre-pandemic levels.

2. Labour demand

The overall number of employment increased by 2.6% year on year to 8.90 million. The number of filled positions (97.9%) increased by 2.7% year on year to 8.71 million. However, the number of job openings in the economy, as measured by the number of vacancies, fell marginally by 0.2% in Q3 2023. During the quarter, 32,000 new employment were generated in the private sector.

Related link: 73.4% Of Businesses To Keep Their Employees

Overall analysis for Q3 2023 and beyond

DOSM has characterised the forecast for Q3 2023 as “favourable.” As we approach the end of the year, the picture remains positive, as the Malaysian economy is likely to soften more.

DOSM also said that the Budget 2024 plans and objectives are projected to have a beneficial influence on the labour market ecosystem by improving worker skills, raising salaries, and providing employment opportunities through strategic investments. “Hence, overall labour market performance is expected to expand, with prospects for modest growth in the forthcoming quarters.

The report also included a cautionary statement: “However, this viewpoint is subject to various global and domestic challenges that may emerge from unforeseen circumstances in the future, as well as the impact of flood disasters that may occur during the expected North East Monsoon or monsoon season in Malaysia, starting in early November 2023 and continuing until March 2024.”