Promote growth of productive employment in provinces, says new ILO report
3 April 2012
JAKARTA (ILO News): While the world economy still struggles to recover from the economic crisis, Indonesia has weathered the crisis better than neighbouring countries and its economic growth is expected to accelerate in the coming years. Although world labour markets face serious jobs deficits—unemployment has increased by 27 million and nearly 29 million workers are estimated to have been discouraged from labour participation—, job growth is back on track in Indonesia.
Growth in economic activities and employment opportunities are, however, unevenly distributed among provinces. Given the considerable diversity in socio-economic conditions among provinces and decentralized policymaking, realizing inclusive and job-rich growth requires suitable policy interventions at the local levels, a new report by the International Labour Organization’s Office for Indonesia says. The report will be launched and released on Thursday, 22 March, in the Crowne Plaza hotel, Jakarta, from 12 – 16pm.
The report, Labour and Social Trends in Indonesia 2011: Promoting job-rich growth in provinces, points out persistent labour market challenges despite a fall in unemployment rates. Deficits in quality employment are more pronounced outside of a few economic centres and industrial hubs. For instance, despite a decade-long economic growth, Indonesian employment remains largely informal. The share of informal employment was 61.5per cent in 2001 and 59.0 per cent in 2010. Incidences of informal employment vary significantly among regions ranging from 27.3 per cent in DKI Jakarta to 79.8 per cent in Papua (provinces of Papua and Papua Barat combined).
“Given diverse socio-economic conditions among provinces and decentralized governance, it is important to analyze employment challenges at the local level and formulate effective policies. The ILO has been increasingly working with local governments and social partners,” said Peter van Rooij, Director of the ILO in Indonesia. He further emphasizes that “geographical balance in development is an important aspect of inclusive job-rich growth”.
The report analyses labour market trends at the provincial level. “The Indonesian economy will maintain a growth momentum and job growth will continue. A challenge is to enhance inclusiveness of economic growth and the quality of employment, especially outside Java,” said the author of the report, Kazutoshi Chatani, economist for the ILO Jakarta Office.
For the main findings of the report, please refer to ‘Key points: Labour and Social Trends report for Indonesia’.
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