Towards Win-Win : A Labor Reform Strategy to Benefit All

Indonesia needs more jobs. While 2.1 million jobs have been created on average over the past three years, the 20 percent youth unemployment rate, four times higher than the adult unemployment rate, combined with the growth of the country’s labor fo...

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Main Author:	World Bank
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	LABOR MARKET LABOR MARKET SURVEY STAKEHOLDER CONSULTATION LABOR POLICY LABOR UNION COLLECTIVE LABOR AGREEMENT MINIMUM WAGE EMPLOYMENT SECURITY OCCUPATIONAL HEALTH AND SAFETY LABOR REFORM
Online Access:	http://documents.worldbank.org/curated/en/361621624942826086/Indonesia-Jobs-Action-Program-Towards-Win-Win-A-Labor-Reform-Strategy-to-Benefit-All http://hdl.handle.net/10986/35924

id	okr-10986-35924
recordtype	oai_dc
spelling	okr-10986-359242021-07-16T05:11:00Z Towards Win-Win : A Labor Reform Strategy to Benefit All World Bank LABOR MARKET LABOR MARKET SURVEY STAKEHOLDER CONSULTATION LABOR POLICY LABOR UNION COLLECTIVE LABOR AGREEMENT MINIMUM WAGE EMPLOYMENT SECURITY OCCUPATIONAL HEALTH AND SAFETY LABOR REFORM Indonesia needs more jobs. While 2.1 million jobs have been created on average over the past three years, the 20 percent youth unemployment rate, four times higher than the adult unemployment rate, combined with the growth of the country’s labor force, emphasizes the importance of greater job creation (Sakernas, 2017). Indonesia’s productive age population is now growing. Current changes in the demographic structure will provide Indonesia with a window of opportunity to achieve a demographic bonus during 2020-2030. However, to enjoy optimum benefits, the country’s human resources must able to meet the requirements of the labor market. Therefore, mastery of the skills needed by the labor market, particularly regarding technological and entrepreneurial skills, is critical. (LD FEUI, 2017). It is important to continuously improve both the quantity and quality of jobs created. Employment in Indonesia has been dominated by low productivity sectors, of which 30 percent is employed in the agricultural sector (Sakernas, 2017). Output per agricultural worker is equivalent to only 1/3 of the processing industry sector and 1/2 of the service sector’s output. New job creation has generally taken place in such low productivity sectors, with 65 percent of all new job creation between 2011-2016 taking place in the agricultural, trade and low-end service sectors. The current composition of the labor market has moreover given rise to a division between formal and informal sectors, between skilled and unskilled workers, and between contracted and non-contracted workers. 58 percent of all workers, including employees as well as freelancers, are not covered by employment contracts, meaning that they are more vulnerable to shocks and receive less protection. 2021-07-15T16:37:28Z 2021-07-15T16:37:28Z 2018-08-31 Report http://documents.worldbank.org/curated/en/361621624942826086/Indonesia-Jobs-Action-Program-Towards-Win-Win-A-Labor-Reform-Strategy-to-Benefit-All http://hdl.handle.net/10986/35924 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Social Protection Study East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	LABOR MARKET LABOR MARKET SURVEY STAKEHOLDER CONSULTATION LABOR POLICY LABOR UNION COLLECTIVE LABOR AGREEMENT MINIMUM WAGE EMPLOYMENT SECURITY OCCUPATIONAL HEALTH AND SAFETY LABOR REFORM
spellingShingle	LABOR MARKET LABOR MARKET SURVEY STAKEHOLDER CONSULTATION LABOR POLICY LABOR UNION COLLECTIVE LABOR AGREEMENT MINIMUM WAGE EMPLOYMENT SECURITY OCCUPATIONAL HEALTH AND SAFETY LABOR REFORM World Bank Towards Win-Win : A Labor Reform Strategy to Benefit All
geographic_facet	East Asia and Pacific Indonesia
description	Indonesia needs more jobs. While 2.1 million jobs have been created on average over the past three years, the 20 percent youth unemployment rate, four times higher than the adult unemployment rate, combined with the growth of the country’s labor force, emphasizes the importance of greater job creation (Sakernas, 2017). Indonesia’s productive age population is now growing. Current changes in the demographic structure will provide Indonesia with a window of opportunity to achieve a demographic bonus during 2020-2030. However, to enjoy optimum benefits, the country’s human resources must able to meet the requirements of the labor market. Therefore, mastery of the skills needed by the labor market, particularly regarding technological and entrepreneurial skills, is critical. (LD FEUI, 2017). It is important to continuously improve both the quantity and quality of jobs created. Employment in Indonesia has been dominated by low productivity sectors, of which 30 percent is employed in the agricultural sector (Sakernas, 2017). Output per agricultural worker is equivalent to only 1/3 of the processing industry sector and 1/2 of the service sector’s output. New job creation has generally taken place in such low productivity sectors, with 65 percent of all new job creation between 2011-2016 taking place in the agricultural, trade and low-end service sectors. The current composition of the labor market has moreover given rise to a division between formal and informal sectors, between skilled and unskilled workers, and between contracted and non-contracted workers. 58 percent of all workers, including employees as well as freelancers, are not covered by employment contracts, meaning that they are more vulnerable to shocks and receive less protection.
format	Report
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Towards Win-Win : A Labor Reform Strategy to Benefit All
title_short	Towards Win-Win : A Labor Reform Strategy to Benefit All
title_full	Towards Win-Win : A Labor Reform Strategy to Benefit All
title_fullStr	Towards Win-Win : A Labor Reform Strategy to Benefit All
title_full_unstemmed	Towards Win-Win : A Labor Reform Strategy to Benefit All
title_sort	towards win-win : a labor reform strategy to benefit all
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/361621624942826086/Indonesia-Jobs-Action-Program-Towards-Win-Win-A-Labor-Reform-Strategy-to-Benefit-All http://hdl.handle.net/10986/35924
_version_	1764484015484567552

Towards Win-Win : A Labor Reform Strategy to Benefit All

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