Workers Are More Productive, But Growth Is Easing
Author Avatar

The economy is producing more per hour of work, but the rate of improvement is slowing. Labour productivity grew 4.8% year-on-year in Q1 2026, down from 5.8% in Q4 2025, according to the Department of Statistics Malaysia (DOSM). 

Output per worker also rose 4.3% to RM26,171 per person, as total employment grew 1.0% to 16.7 million persons while total hours worked increased by 0.5%.

Construction And Manufacturing Led Growth

Construction posted the strongest gains, with productivity per hour worked rising 7.8% to RM22.50, supported by a 7.7% expansion in sector value added. The sector has expanded consistently since 2024, driven by ongoing infrastructure activity.

Manufacturing grew 5.8% per hour worked to RM60.00, with electrical, electronic and optical products the standout subsector at 11.9%. Services grew 4.5% to RM43.40 per hour, led by food and beverages and accommodation at 8.2%.

Mining And Quarrying Slipped Into Negative

Agriculture grew a modest 3.6% to RM24.30 per hour. Mining and quarrying was the only sector to contract, declining 2.4% to RM537.60 per hour, tied to a 2.1% drop in value added from weaker crude oil and natural gas output.

The productivity picture mirrors GDP in Q1 of 2026, with construction and manufacturing doing the heavy lifting while momentum eases from the highs of late 2025. The same sectors driving output growth are also the ones where workers are getting more done per hour.

Follow us on our official WhatsApp channel for the latest money tips and updates.

0 0 votes
Article Rating
SHARE

Comments (0)

Subscribe
Notify of

0 Comments
Most Viewed Articles
Most Viewed Articles
Post Image
Personal Finance News
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
RinggitPlus
- 28th October 2026
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Personal Finance News
Rakyat Digital Portal Offers Free Coursera And AI Access
Iman Aminuddin
- 12th August 2026
Malaysians can now get free access to Coursera courses and leading AI applications through the newly launched Rakyat […]
Post Image
Personal Finance News
1 In 8 Malaysians Is Now Aged 60 Or Older
Iman Aminuddin
- 3rd August 2026
Malaysia’s population is ageing faster than its birth rate can keep pace, with 4.2 million residents, or 12.3% […]
Post Image
Personal Finance News
Four New MITRA Aid Programmes Open For Applications On 14 September
Eloise Lau
- 14th September 2026
Four new aid and grant programmes for the Indian community will open for applications from 14 September 2026. […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image