Sources of labour growth in Malaysian manufacturing sector

Manufacturing sector play an important role in the Malaysian industrial development. High growth rates and technology expansion in the manufacturing sector resulted in a substantial increase in demand for labour. This process of rapid growth and changes in labour were also accompanied by changes in...

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Main Authors: Poo, Bee Tin, Abdul Rashid, Zakariah, Mohd Noor, Zaleha, Law, Siong Hook
Format: Conference or Workshop Item
Language:English
Published: School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia 2011
Online Access:http://psasir.upm.edu.my/id/eprint/48876/1/Sources%20of%20labour%20growth%20in%20Malaysian%20manufacturing%20sector.pdf
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author Poo, Bee Tin
Abdul Rashid, Zakariah
Mohd Noor, Zaleha
Law, Siong Hook
author_facet Poo, Bee Tin
Abdul Rashid, Zakariah
Mohd Noor, Zaleha
Law, Siong Hook
author_sort Poo, Bee Tin
collection UPM
description Manufacturing sector play an important role in the Malaysian industrial development. High growth rates and technology expansion in the manufacturing sector resulted in a substantial increase in demand for labour. This process of rapid growth and changes in labour were also accompanied by changes in labour structure and skills. At the same time, the range of activities and products became more diversified and correspondingly sub sectors composition of manpower changed significantly. This study employed the input-output SDA. The analysis computed the compositional manpower change as a result of decomposition. The result of this study indicates that sources of labour growth in the manufacturing sector were favored by changes in the final demand structure. Within the changes in the final demand structure, changes in domestic demand structure were the dominant source of employment growth during 1978-1991 and overall period 1978-2000. However, from 1991 to 2000, an employment change was due mainly to changes in export structure. Changes in the structure of domestic demand had relatively strong increasing effect on service workers, production and related workers, transport equipment operators and laboures and clerical and related workers during 1978-1991. Changes in the export structure were the main factor that had an employment increasing effect on high skill workers and sales workers. However, during the second sub period 1991-2000, manpower growth was exports structure driven. Interestingly, human capital accumulation occurred in the heavy industry was higher than light industry over the period considered.
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spelling upm.eprints-488762016-12-29T09:34:58Z http://psasir.upm.edu.my/id/eprint/48876/ Sources of labour growth in Malaysian manufacturing sector Poo, Bee Tin Abdul Rashid, Zakariah Mohd Noor, Zaleha Law, Siong Hook Manufacturing sector play an important role in the Malaysian industrial development. High growth rates and technology expansion in the manufacturing sector resulted in a substantial increase in demand for labour. This process of rapid growth and changes in labour were also accompanied by changes in labour structure and skills. At the same time, the range of activities and products became more diversified and correspondingly sub sectors composition of manpower changed significantly. This study employed the input-output SDA. The analysis computed the compositional manpower change as a result of decomposition. The result of this study indicates that sources of labour growth in the manufacturing sector were favored by changes in the final demand structure. Within the changes in the final demand structure, changes in domestic demand structure were the dominant source of employment growth during 1978-1991 and overall period 1978-2000. However, from 1991 to 2000, an employment change was due mainly to changes in export structure. Changes in the structure of domestic demand had relatively strong increasing effect on service workers, production and related workers, transport equipment operators and laboures and clerical and related workers during 1978-1991. Changes in the export structure were the main factor that had an employment increasing effect on high skill workers and sales workers. However, during the second sub period 1991-2000, manpower growth was exports structure driven. Interestingly, human capital accumulation occurred in the heavy industry was higher than light industry over the period considered. School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia 2011 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/48876/1/Sources%20of%20labour%20growth%20in%20Malaysian%20manufacturing%20sector.pdf Poo, Bee Tin and Abdul Rashid, Zakariah and Mohd Noor, Zaleha and Law, Siong Hook (2011) Sources of labour growth in Malaysian manufacturing sector. In: Sixth Malaysian National Economic Conference (PERKEM VI), 5-7 June 2011, Melaka, Malaysia. (pp. 102-114). http://www.ukm.my/fep/perkem/contents/perkem2011-2-02.html
spellingShingle Poo, Bee Tin
Abdul Rashid, Zakariah
Mohd Noor, Zaleha
Law, Siong Hook
Sources of labour growth in Malaysian manufacturing sector
title Sources of labour growth in Malaysian manufacturing sector
title_full Sources of labour growth in Malaysian manufacturing sector
title_fullStr Sources of labour growth in Malaysian manufacturing sector
title_full_unstemmed Sources of labour growth in Malaysian manufacturing sector
title_short Sources of labour growth in Malaysian manufacturing sector
title_sort sources of labour growth in malaysian manufacturing sector
url http://psasir.upm.edu.my/id/eprint/48876/1/Sources%20of%20labour%20growth%20in%20Malaysian%20manufacturing%20sector.pdf
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