Labour productivity in Malaysia rose 5.5% to RM46.5 per hour in Q2 2026: DOSM

Value added per hour worked reaching RM46.5 as economic growth accelerated and employment continued to grow.

Labour productivity in Malaysia continued its upward momentum in the second quarter of 2026, with value added per hour worked growing 5.5% year-on-year, an increase from 4.8% in the first quarter, according to the latest report from the Department of Statistics Malaysia (DOSM).

The improvement saw labour productivity per hour worked rise to RM46.5 per hour, compared with RM45.5 in Q1 2026.

This came alongside stronger economic growth of 6.0% during the quarter, while total hours worked increased by 0.5% to 9.6bn hours.

The figures were reported in DOSM’s Labour Productivity Statistics, Malaysia, Second Quarter 2026, released on 20 August 2026 (Friday).

Labour productivity per employment also improves

Labour productivity measured by value added per employment also recorded stronger growth during the quarter.

It increased by 4.9% year-on-year, compared with 4.3% in Q1 2026. Value added per employment rose to RM26,595 per person, an increase from RM26,168 in the previous quarter. The increase came as total employment grew by 1.1%, slightly faster than the 1.0% growth recorded in Q1.

Malaysia’s total employment reached 16.8mn persons in Q2 2026, compared with 16.7mn in the previous quarter.

Mining and quarrying leads sectoral productivity growth

Across the major economic sectors, most recorded positive growth in labour productivity when measured by value added per hour worked.

Mining and quarrying recorded the strongest growth at 9.1%, rebounding from a -2.4% in Q1 2026.

Manufacturing followed with growth of 7.1%, accelerating from 5.8% in the previous quarter.

Construction recorded a 5.6% increase, although this was slower than the 7.8% growth seen in Q1.

Meanwhile, productivity in the services sector grew 5.4%, up from 4.5% in the previous quarter.

Agriculture was the exception, with labour productivity per hour worked declining by 4.4%, compared with growth of 3.6% in Q1 2026.

A similar pattern was seen when productivity was measured by value added per employment.

Mining and quarrying led with growth of 9.2%, reversing a -2.5% in Q1.

Manufacturing continued to record strong growth at 7.3%, while construction grew 6.0% and services increased 4.2%.

Agriculture again recorded a decline, with labour productivity per employment contracting 3.7% after growing 2.5% in the previous quarter.

Productivity gains point to stronger value creation

Overall, Malaysia’s growth in labour productivity in Q2 2026 was attributed to faster economic growth and continued gains across most major sectors. As the economy expands, DOSM noted that maintaining this momentum will be important in improving efficiency, creating higher-value activities and strengthening Malaysia’s competitiveness over the longer term.

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Infographic / DOSM