• Malaysian Bureau of Labour Statistics
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Research and Development

Siti Nurliza Samsudin, Akmalia Hanifah

Computing Employment Multipliers in the Context of Malaysian Economy


The aim of this article is to explain the computing of employment multipliers in the context of Malaysian Economy by industry. The data used is sourced from the Input-Output (I-O) Tables, Economic Census Reports, Labour Force Survey Report and the Labour Productivity Report released by Department of Statistics Malaysia in 2015.

Computing the employer multipliers uses the Leontief Inverse Model from the I-O Tables, as well as w, physical labour coefficient vector which is computed using the ratio of employment to output. Furthermore, the article will study the figures obtained to interpret the number of new jobs created to meet increased final demand for new output. Lastly, the article seeks to compare the behaviours of industries based on the multipliers obtained using K-means clustering.

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