Minister: Strengthening labour market to align competencies with industry

Jakarta (ANTARA) - Minister of Manpower Yassierli said the government continues to strengthen the labour market so that the competencies of the workforce increasingly match the needs of industry.

In a statement issued in Jakarta on Wednesday, the Minister said this step is being taken to address the mismatch between workers’ skills and the ever-evolving needs of the business world.

“What the labour market is looking for today is skills, and I am convinced that skills first is one of the keys to keeping us competitive,” said Yassierli.

According to the Minister, industry needs are changing ever faster, while the availability of workers with matching skills has yet to keep pace. This situation has left many companies struggling to obtain the workers they need.

He revealed that more than 80 per cent of companies across various countries still face difficulties in finding workers with skills suited to industry requirements.

On the other hand, around 36 per cent of workers experience mismatch, a condition in which the competencies they possess do not correspond to the demands of their job.

“The reality on the ground proves that formal education and academic qualifications on paper are no longer an absolute guarantee of a person’s actual competence,” he said.

To answer these challenges, the government is committed to moving away from the old model towards a skills-based labour market, an approach that places competence as the primary consideration in recruitment and workforce development.

He explained that, drawing on the views of the Organisation for Economic Co-operation and Development (OECD), this competency-based approach is built through two main steps.

First, strengthening skills development through modular learning and micro-credentials as proof of more specific competencies.

Second, expanding recognition of skills a person already possesses through the Recognition of Prior Learning system, whilst encouraging companies to adopt recruitment practices that prioritise skills over mere academic qualifications.

He expressed hope that synergy between the government and the business world can accelerate the realisation of a labour market capable of matching industry needs with workers’ competencies, thereby boosting national competitiveness and strengthening economic resilience amid global fragmentation.