Aditya Suharmoko, Jakarta – The number of jobs created rose by 1.94 million from August 2008 to February 2009, despite the country suffering impacts of the global downturn, the Central Statistics Agency (BPS) announced Friday.
As of February, the number of employed people reached 104.50 million, up from 102.55 million in August last year, BPS head Rusman Heriawan said at a press conference. In Febuary 2008, there were 102.05 million people employed.
This figure puts the rate of "open unemployment" at 8.14 percent for February 2009, down from 8.46 percent in February 2008. "Without the (economic) slowdown, the drop in unemployment could be more significant," said Rusman.
Rusman was referring to the country's economic growth slowing to 4.4 percent in the first quarter of 2009, compared to the same time last year. In 2008, Indonesia recorded an economic growth rate of 6.1 percent.
Rusman added that while the global slowdown had resulted in layoffs in many companies, particularly export-oriented businesses, the number was far lower considering the number of workers absorbed into the labor market between August 2008 and February this year.
According to the Manpower and Transmigration Ministry, 51,000 people have been made redundant this year. "Even if the number of redundant workers reached hundreds of thousands it would still be relatively insignificant compared those employed," said Rusman.
Almost all sectors absorbed more workers during the period, according to the BPS, with the exception of the construction sector, which saw the number of workers decrease by 120,000. The transportation, warehouse and communication sectors each saw decreases of 60,000 workers.
The trade sector absorbed the highest number of new workers, employing 1.16 million additional people, while the public service sector absorbed 830,000 people, and the agriculture sector 340,000 people. Rusman said redundant workers had most likely shifted to the informal sector, as the number of workers in the informal sector in February had risen, in comparison to the same period last year.
As of February, 69.5 percent of Indonesia's employed worked in the informal sector, while the remaining 30.5 percent worked in the formal sector.
"Unlike in developed countries, like the US or Japan, where laid-off workers receive social benefits, here they have to find other work to live," he said.
The trend would remain that way as most Indonesia workers lacked education, Rusman said. In the Indonesian labor market, 55.4 million out of the 104.5 million workers had no more than an elementary school education.
Only 4.22 million workers in Indonesia were university graduates, the February BPS figures revealed. "Therefore the number of workers in the informal sector has reached almost 70 percent of employed Indonesians."
Rusman also said that in February the number of full-time workers reached 73.1 million, or 70 percent of the total employed. The remaining, defined as underemployed, refers to "involuntary part-time" workers.