Quarterly data over the last five years shows uneven sectoral labour productivity growth, with some sectors recording consecutive quarters of year-on-year contractions. Mohammad Iesa notes that when wage growth and productivity are misaligned, the consequences are clear: Slower wage growth can widen income inequality; and faster wage growth relative to productivity can fuel inflationary pressures. He adds, however, that wage growth does not always move in lockstep with productivity growth in market-based economic systems. Wan Amirah argues that the discussion on matching wages to productivity should not be reduced to “wages versus productivity”, but it should examine the institutional and structural bottlenecks that prevent productivity improvements from being reflected in broader wage growth. Mohammad Iesa cautions, however, that while it is essential for increasing labour productivity, technology alone is not enough.

Source: The Edge Markets March 05, 2026 06:12 UTC