Journal of Economic, Bussines and Accounting (COSTING)
Vol 7 No 5 (2024): Journal of Economic, Bussines and Accounting (COSTING)

Analysis of Labor Market Dynamics in Indonesia (1986-2012)

Thomson Sitompul (Universitas Pelita Harapan)



Article Info

Publish Date
02 Aug 2024

Abstract

The researcher provides new evidence from Badan Pusat Statistik and International Labor Organization data on how labor market dynamics vary in labor market in Indonesia based on the ILO publication, 17 Key Indicators of the Labor Market 2015, which shows statistics on the main indicators in the dynamics of the labor market. Result shows that In Indonesia, the LFPR (Labor Force Participation Rate) for young people (15-19) is relatively low and reaches a peak among men (20-29) and then begins to decline substantially for older people (60+). Japan, as a developed country that is still in the Asian region, has a 2017 LFPR of 60.21%, this is because LFPR is the percentage of the labor force to the working age population. The total population of Indonesia aged 15 years and over is higher than Japan. In Indonesia, based on the number of people working in the sector, for the period 1986 to 2016, the agricultural sector is the most volatile sector. The highest proportion of informal employment in the non-agricultural sector is experienced by those with low education and the lowest is experienced by university graduates. Compared to Laos, Thailand and Cambodia as neighboring countries and developing countries, Indonesia is the country with the highest unemployment rate. Over the period 1991 to 2017, youth unemployment rates increased sharply for both men and women. The characteristics of unemployment in Indonesia based on unemployment show that the unemployed with high education (ILO concept: Intermediate and Advanced) are higher than the unemployed with low education (basic education).

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