Jobs in key sectors drop, says BPS<\/p>\n
Zakki P. Hakim, Jakarta<\/p>\n
The number of jobs in key industries such as manufacturing,
\nconstruction and trade has contracted significantly as an
\nunfavorable labor environment has prompted companies to hire
\nfewer workers and cancel investment plans, according to the
\nlatest government labor data.<\/p>\n
The 2003 National Labor Force Survey (Sakernas) report
\npublished by the Central Statistics Agency (BPS) also suggested
\nthat more women quit their jobs, particularly due to rising
\ntransportation costs.<\/p>\n
According to the report, obtained by The Jakarta Post over the
\nweekend, the number of jobs in the manufacturing sector shrank by
\n9.76 percent to 10.93 million last year from 12.11 million in
\n2002.<\/p>\n
The number of jobs in the construction and trade sectors
\n(retail, hotel and restaurant), declined by 3.90 percent and 5.34
\npercent to 4.11 million and 16.84 million, respectively.<\/p>\n
For many years the above have been the main provider of jobs
\nin the formal sector, particularly in the heavily populated
\nisland of Java.<\/p>\n
Arif Rahman Hakim, an economist at the National Development
\nPlanning Agency (Bappenas), said that the decline in the number
\nof jobs was linked mainly to widespread labor problems and
\nunfavorable labor regulations, which had prompted companies to
\nadopt capital-intensive approach instead of hiring people.<\/p>\n
Analysts have said that labor regulations that are too
\nfavorable to workers in terms of higher wages and other benefits
\nhad increased costs for companies at a time when business was
\nslow due to weak economic growth at home and a slow recovery in
\nthe export market.<\/p>\n
The lingering labor conflict is also seen as one of the major
\nfactors discouraging new investment, which in turn has caused the
\neconomy to grow at a mere 3 percent to 4 percent per year, as it
\nrelies heavily on domestic consumption. Such low growth is
\ndeemed insufficient to provide sufficient jobs for some 2 million
\npeople entering the job market each year. The economy needs to
\ngrow at around 6 percent to 7 percent.<\/p>\n
The labor report said that open unemployment in 2003 increased
\nto 9.45 percent (9.53 million people) from 9.05 percent (9.13
\nmillion) the previous year.<\/p>\n
The report, however, said that the number of jobs in the
\nfinance, insurance and real estate sectors increased by 30.67
\npercent to 1.3 million jobs. These, particularly banking,
\nstarted to recover from the impact of the late-1990s economic
\ncrisis.<\/p>\n
Agriculture, forestry and fisheries created about 1.5 million
\nnew jobs last year.<\/p>\n
Another bizarre development last year, according to the
\nreport, is that the workforce in a country of 220 million
\npopulation declined to 100.32 million from 100.78 million.<\/p>\n
This is in spite of the fact that the working-age population
\nincreased to 152 million from 148.7 million people.<\/p>\n
\"This is a peculiar development,\" said University of Indonesia
\neconomist Chatib Basri, adding that it was probably caused by a
\nrising number of women opting to stay at home and exit the
\nworkforce.<\/p>\n
Arif concurred, saying that rising transportation costs,
\nfollowing increases in fuel prices and other costs, had
\ndiscouraged 3.5 million women (around 3.7 percent of the total
\nworkforce) from continuing in their part-time jobs.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jobs-in-key-sectors-drop-says-bps-1447893297",
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