Publication: Indonesia Jobs Report: Towards Better Jobs and Security for All
Loading...
Date
2010-06
ISSN
Published
2010-06
Author(s)
Editor(s)
Abstract
Indonesia has enjoyed a demographic dividend over the last forty years. The working population has been growing faster than the population of non-working dependents. This presents a major opportunity for economic growth and poverty reduction, provided that more jobs and better jobs are created to employ a workforce, which will grow by an estimated 20 million workers over the next ten years. Today's policy makers in Indonesia face a strategic challenge in identifying which policies and programs will spur the creation of good jobs while, at the same time, ensuring that workers are better protected from risks threatening their income security. Decisions about labor policies are particularly difficult because they can directly affect the well-being of workers, both inside and outside the formal jobs market, and the firms that are the main engines of job growth. Sound empirical data will help guide the debate around labor reform. The Indonesia jobs report, prepared by the World Bank in cooperation with the Government of Indonesia and local research partners, is the most comprehensive assessment of the country's labor market that has been carried out in the last decade. The report uses the most up-to-date data available to examine the performance of the labor market, changes in the supply of workers, and the effects of labor policies. The findings will help inform future policy directions and contribute towards evidence-based decision making. Stimulating the growth of better jobs requires a multi-pronged approach. This report recommends much needed reforms of labor policies and programs. Equally important, however, are reforms that accelerate job creation by improving infrastructure and the investment climate, alongside reforms that aim at improving the quality of education. Success will depend on working partnerships between the government, employer associations, labor unions and other civil society groups, with the support of Indonesia's think tanks and international development partners. This report helps reinvigorate policy dialogue about job creation and worker security. Learning from experiences and international best practices, Indonesia will be better prepared to navigate a course towards 'win-win' solutions that accelerate the creation of better jobs without sacrificing adequate protection for workers.
Link to Data Set
Citation
“World Bank. 2010. Indonesia Jobs Report: Towards Better Jobs and Security for All. © World Bank. http://hdl.handle.net/10986/27901 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Working Out of Poverty : Job Creation and the Quality of Growth in Africa(Washington, DC : World Bank, 2008)This paper explores Africa's economic performance and the creation of jobs over the decade and more since 1995, recognizing that some standard labor concepts are difficult to apply to conditions prevailing in Africa. The intent of the paper is to identify the economic factors behind the more successful outcomes and the options available for improving the quality of growth. The report focuses on several key issues: how has the structure of economic growth and labor demand shaped the job creation process? Does rigidity in African labor markets impede job creation? Have the quality and quantity of the labor supply affected job creation? What policies have been pursued to raise the quality of the African labor force? What does the expanding "informal" sector mean for the labor market and the quality of growth? Is it a route out of poverty or a low-skills trap? Throughout the paper, the focus is on the factors, exogenous and endogenous, that are linked to the outcomes, and the implications that these factors may have for raising the quality of Africa's economic growth. Some countries have reversed many of the vicious cycles underlying Sub- Saharan Africa's generally poor performance on job creation; those countries are highlighted where adequate data are available, and the lessons these experiences offer all stakeholders in meeting the growth and poverty reduction challenges of the future are pointed out. The paper concludes that Africa's record of poor economic performance has in part been an inevitable result of its colonial heritage-the low levels of human capital at independence. It is also a function of the ensuing policies pursued, especially those that led to the debt crisis and the subsequent recession and public sector restructuring. In most countries, these costs have been paid, and the future looks brighter as a result.Publication Labor Market Policies under a Youth Bulge : How to Benefit from Demographic Dividend in Pakistan(World Bank, Washington, DC, 2012-12)This paper assesses labor market trends and outcomes in Pakistan over the past decade. It shows that despite a high rate of employment growth, labor market outcomes have been disappointing: most jobs have been created in low productivity sectors/activities, and even if they provide a minimum level of income to often avoid poverty, they remain low quality jobs providing little or no protection to workers against shocks. In addition, female participation rates for women are very low and there are large income disparities between rural and urban areas, and across sectors. A fundamental part of the problem is the low level of education of the labor force. Pakistan is currently in the midst of a demographic transition that is bringing a growing number of youth into the labor market. This youth bulge that is unwinding opens both challenges and opportunities. Challenges because of the need to create enough jobs to employ new entrants; Opportunities, because if this is done the country will enjoy a demographic dividend , as the share of those employed relative to the dependent increases, driving up income per capita and standards of living.Publication Turkey : Managing Labor Markets through the Economic Cycle(World Bank, Washington, DC, 2013-03-15)The Turkish economy was hit hard by the global economic crisis, but recovered fast and strong. The economy had already started to slow down in 2007, but the global financial events of late 2008 led to a sharp contraction starting in the last quarter of 2008 until growth resumed in the last quarter of 2009. The recovery was rapid, with growth reaching 9 percent in 2010 and 8.5 percent in 2011. This study looks at how the labor market fared during the recent downturn and recovery and informs policies to manage labor markets through the economic cycle and address the jobs challenge in Turkey. The study investigates: 1) pre-crisis labor market trends and the structural jobs challenge in Turkey; 2) aggregate and distributional impacts of the recent crisis, and subsequent recovery, on the labor market; and 3) recent policy measures and existing labor market institutions in the context of observed labor market outcomes. Finally, the study links policies to manage labor markets through the cycle with measures to address the longer term, structural jobs challenge in Turkey. Ongoing structural transformations and the large 'stock' of low-skilled workers are behind the jobs challenge in Turkey. Continued urbanization and labor shedding in agriculture, along with the increase in the Working Age Population (WAP), will continue to increase the number of (mostly) young and low-skilled workers looking for non-agricultural jobs. The Turkish Employment Agency (ISKUR) plays a key role in activating low-skilled workers into productive employment. ISKUR has come a long way since 2008, increasing the coverage and quality of vocational training, introducing job and vocational counselors and linking social assistance receipts to registration in ISKUR.Publication Turkey : Managing Labor Markets Through the Economic Cycle(Washington, DC, 2013-03-15)The Turkish economy was hit hard by the global economic crisis, but recovered fast and strong. The economy had already started to slow down in 2007, but the global financial events of late 2008 led to a sharp contraction starting in the last quarter of 2008 until growth resumed in the last quarter of 2009. The recovery was rapid, with growth reaching 9 percent in 2010 and 8.5 percent in 2011. This study looks at how the labor market fared during the recent downturn and recovery and informs policies to manage labor markets through the economic cycle and address the jobs challenge in Turkey. The study investigates: (i) pre-crisis labor market trends and the structural jobs challenge in Turkey; (ii) aggregate and distributional impacts of the recent crisis, and subsequent recovery, on the labor market; and (iii) recent policy measures and existing labor market institutions in the context of observed labor market outcomes. Based on this analysis and a comparison with selected countries from around the world, the study suggests options to improve the responsiveness of policies to future crises and to adjust the policy mix through the economic cycle. Finally, the study links policies to manage labor markets through the cycle with measures to address the longer term, structural jobs challenge in Turkey.Publication Labor Markets for Inclusive Growth(Washington, DC, 2013-04)This policy note outlines short, and medium-term policy options for addressing critical challenges affecting labor markets in Mexico, and in particular labor productivity. As labor is the main source of income for most of the population, poverty is closely linked to underemployment and low wages. Yet labor markets have played a limited role in poverty reduction in Mexico. Labor income accounted for just 22 percent of the decline in poverty in Mexico over the last decade compared with 38 percent in the rest of the region. Between the third quarter of 2008 and the third quarter of 2011, the labor income poverty index2 continued to decline in Brazil, Ecuador, and Peru but increased in Mexico. The equivalent measure produced by CONEVAL (Consejo Nacional de Evaluation), shows the labor poverty trend to be increasing through the first quarter of 2012. Finding the right bundle of policies to improve labor productivity and the functioning of the labor markets can serve to improve economic growth and welfare outcomes.
Users also downloaded
Showing related downloaded files
Publication Government Matters III : Governance Indicators for 1996-2002(World Bank, Washington, DC, 2003-08)The authors present estimates of six dimensions of governance covering 199 countries and territories for four time periods: 1996, 1998, 2000, and 2002. These indicators are based on several hundred individual variables measuring perceptions of governance, drawn from 25 separate data sources constructed by 18 different organizations. The authors assign these individual measures of governance to categories capturing key dimensions of governance and use an unobserved components model to construct six aggregate governance indicators in each of the four periods. They present the point estimates of the dimensions of governance as well as the margins of errors for each country for the four periods. The governance indicators reported here are an update and expansion of previous research work on indicators initiated in 1998 (Kaufmann, Kraay, and Zoido-Lobat 1999a,b and 2002). The authors also address various methodological issues, including the interpretation and use of the data given the estimated margins of errors.Publication Governance Matters IV : Governance Indicators for 1996-2004(World Bank, Washington, DC, 2005-06)The authors present the latest update of their aggregate governance indicators, together with new analysis of several issues related to the use of these measures. The governance indicators measure the following six dimensions of governance: (1) voice and accountability; (2) political instability and violence; (3) government effectiveness; (4) regulatory quality; (5) rule of law, and (6) control of corruption. They cover 209 countries and territories for 1996, 1998, 2000, 2002, and 2004. They are based on several hundred individual variables measuring perceptions of governance, drawn from 37 separate data sources constructed by 31 organizations. The authors present estimates of the six dimensions of governance for each period, as well as margins of error capturing the range of likely values for each country. These margins of error are not unique to perceptions-based measures of governance, but are an important feature of all efforts to measure governance, including objective indicators. In fact, the authors give examples of how individual objective measures provide an incomplete picture of even the quite particular dimensions of governance that they are intended to measure. The authors also analyze in detail changes over time in their estimates of governance; provide a framework for assessing the statistical significance of changes in governance; and suggest a simple rule of thumb for identifying statistically significant changes in country governance over time. The ability to identify significant changes in governance over time is much higher for aggregate indicators than for any individual indicator. While the authors find that the quality of governance in a number of countries has changed significantly (in both directions), they also provide evidence suggesting that there are no trends, for better or worse, in global averages of governance. Finally, they interpret the strong observed correlation between income and governance, and argue against recent efforts to apply a discount to governance performance in low-income countries.Publication Governance Matters VIII : Aggregate and Individual Governance Indicators 1996–2008(2009-06-01)This paper reports on the 2009 update of the Worldwide Governance Indicators (WGI) research project, covering 212 countries and territories and measuring six dimensions of governance between 1996 and 2008: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption. These aggregate indicators are based on hundreds of specific and disaggregated individual variables measuring various dimensions of governance, taken from 35 data sources provided by 33 different organizations. The data reflect the views on governance of public sector, private sector and NGO experts, as well as thousands of citizen and firm survey respondents worldwide. The authors also explicitly report the margins of error accompanying each country estimate. These reflect the inherent difficulties in measuring governance using any kind of data. They find that even after taking margins of error into account, the WGI permit meaningful cross-country comparisons as well as monitoring progress over time. The aggregate indicators, together with the disaggregated underlying indicators, are available at www.govindicators.org.Publication Breaking the Conflict Trap : Civil War and Development Policy(Washington, DC: World Bank and Oxford University Press, 2003)Most wars are now civil wars. Even though international wars attract enormous global attention, they have become infrequent and brief. Civil wars usually attract less attention, but they have become increasingly common and typically go on for years. This report argues that civil war is now an important issue for development. War retards development, but conversely, development retards war. This double causation gives rise to virtuous and vicious circles. Where development succeeds, countries become progressively safer from violent conflict, making subsequent development easier. Where development fails, countries are at high risk of becoming caught in a conflict trap in which war wrecks the economy and increases the risk of further war. The global incidence of civil war is high because the international community has done little to avert it. Inertia is rooted in two beliefs: that we can safely 'let them fight it out among themselves' and that 'nothing can be done' because civil war is driven by ancestral ethnic and religious hatreds. The purpose of this report is to challenge these beliefs.Publication Design Thinking for Social Innovation(2010-07)Designers have traditionally focused on enchancing the look and functionality of products.