Total hours worked surged by 4.2% to 9.42bn hours in Malaysia for Q3 2023

Labour productivity as measured by value added per employment also posted an increase of 0.6% recording the level of RM24,465 per person.

With an increase in total hours worked, labour productivity per hour worked dropped by 0.9% in Q3 2023, with a value of RM42.2 per hour, indicating decreased labour market efficiency. This was one of the highlights in Department of Statistics Malaysia (DOSM) Labour Market Review (LMR), Third Quarter 2023, released on 24 November 2023.

The report highlights the most recent trends in Malaysia’s labour market and consolidates short-term labour market statistics. The statistics comprises:

• Labour supply,
• Demand,
• Productivity,
• Employee wages.

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

Labour supply

Labour supply remained strong as the number of labour force increased by 2.3% year-on-year to record 16.82mn persons. Thus, the labour force participation rate rose 0.7 percentage points to 70.1%. In the meantime, the number of unemployed persons decreased by 6.3%, resulting in the national unemployment rate of 3.4%, marking a gradual return to pre-pandemic levels.

Labour demand

The number of jobs strengthened by 2.6% year-on-year to record a total of 8.90mn jobs. Filled jobs (which comprised 97.9%) grew by 2.7% year-on-year to 8.71mn. However, job openings in the economy, which was indicated by the number of vacancies, declined slightly by 0.2% in Q3 2023. In the private sector, 32,000 jobs were created during the quarter.

Overall analysis for Q3 2023 and beyond

The outlook in Q3 2023 has been described by DOSM as "favourable". Moving towards the end of the year, the outlook remains optimistic, as the Malaysian economy is expected to continue to moderate.

DOSM added that the strategies and initiatives in Budget 2024 are expected to have a positive impact on the labour market ecosystem by enhancing workforce skills, increasing wages, and creating job opportunities through strategic investments. "Hence, overall labour market performance is expected to expand, with prospects for modest growth in the forthcoming quarters."

It did also add a note of caution: "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."

ALSO READ: Malaysia's economy grows by 3.3% in Q3 2023

Lead photo / DOSM