Labor conditions in Indonesia in August 2013 showed a decline in the labor force as many as 3.0 million people compared to February 2013, but compared to August 2012, the number increased by 140 thousand people. Working population in August 2013 decreased by 3.2 million people compared to February 2013, and compared to August 2012, the number decreased by 10 thousand people. While the number of unemployed in August 2013 slightly increased by 220 thousand people compared to August 2012. During the past year, although the total labor force increased, the Labor Force Participation Rate (LFPR) decreased by 0.98%. this is the data reported by the Central Bureau of Statistics (BPS) obtained on Friday (November 8).
Employment structure on until August 2013 did not change, in which the Agriculture, Trading, Social Services, and Manufacturing Sectors sequentially is still the largest contributor to employment in Indonesia. Compared to August 2012, the working population has increased, especially in the Social Service Sector by 1.1 million people (6.49%), Trading Sector by 580 thousand people (2.50%), and the Financial Sector 250 Thousand people (9.40%). Sectors that experienced a decline in working population is particularly the agricultural sector which declined by 2.08%, Construction Sector by 7.51%, and Industrial Sector by 3.19%.
The formal and informal activities of the working population can be identified based on job status. From 7 major categories of job status, formal workers category includes the category of self-employed with the help of permanent workers and categories of laborers/employees, and the rest are informal worker category. Based on the identification, in August 2013, a total of 44.8 million people (40.42%) worked in the formal sector and 66.0 million people (59.58%) worked informal sector.
During the past year (August 2012-August 2013), working population of the category of self-employed with the help of permanent workers decreased by 120 thousand people and those with laborers/employees status increased by 740 thousand people. This causes the number of formal workers to increase by around 620 thousand people, and the percentage of formal workers to increase from 39.86% in August 2012 to 40.42% in August 2013.
Components of formal worker consist of working population with self-employed status assisted by temporary workers, casual employees in agriculture, casual employees not in agriculture, and family/unpaid workers. In the past year (August 2012-August 2013), informal workers decreased by 630 thousand people and the percentage of informal workers decreased from 60.14% in August 2012 to 59.58% in August 2013. The decline came from nearly all components of informal workers, except for working population with self-employed status.
In general, the composition of the working population by working hours during the past week did not change significantly from time to time. Residents who are considered full-time workers are a group of people who work 35 hours or more per week, in August 2013 the number amounted to 74.0 million people (66.78%). Meanwhile, in the past year, workers who work under normal working hours (less than 35 hours per week) increased by 2.5 million people (7.32%). In addition, residents who work less than 15 hours per week in August 2013 reached 8.6 million people (7.77%).
Labor absorption until August 2013 was still dominated by low-educated working population, i.e. Elementary School and under 52.0 million people (46.95%) and Secondary School as much as 20.5 million people (2.64%) have Diploma/Academy education, and 7.6 million people (6.83%) have university education.
Quality improvement of the working population is shown by the declining trend of low-educated working population (secondary school and under) and the increase in college-educated working population (Diploma and University). In the past year, low-educated working population decreased from 74.1 million people (66.87%) in August 2012 to 72.5 million people (65.42%) in August 2013. Meanwhile, highly educated working population increased from 10.0 million people (8.99%) in 2012 to 10.5 million people (9.47%) in August 2013.
Unemployment in August 2013 reached 7.4 million people with Open Unemployment Rate (TPT) which tends to increase, where TPT in August 2013 reached 6.25%, up from February 2013 at 5.92% and August 2012 at 6.14%.
In August 2013, TPT for vocational school education occupies the highest position, i.e. 11.19%, followed by TPT of High School Education at 9.74%, while the lowest TPT was in elementary education and under at 3.51%. Compared to August 2012, TPT at all levels of education decreased, except at the level of high school and vocational school education.
Business News - November 13, 2013