Andra Wisnu, Jakarta – The global financial crisis has reared its ugly head as 46 companies in Central Jakarta have reported their plans to lay off more than a hundred workers, an official said Monday.
"According to our data, 46 companies have cut down their workforce as of April 2009," Daulat Sinaraya, head of the Central Jakarta manpower office, said Monday. "The number of layoffs amounted to 114 people," he added.
The data worsens the concerning state of the city's unemployment level, which the Central Statistics Agency (BPS) reported as having risen by 67,000 in February this year compared to the same month last year, 8,000 of which were actively looking for jobs in Central Jakarta.
Furthermore, the number of layoffs this year is relatively close to last year's, which affected 120 companies and 187 people. "It's not too far behind last year's total number of layoffs, which is really disheartening," Daulat said.
Daulat further warned the situation might get worse as Central Jakarta was home to several major multinational companies, which were likely to have numerous subsidiaries in the city's five municipalities and its greater areas.
"And there's nothing we can do to ease this situation because our budget is only Rp 1 billion, so we stick to programs that promote production intensive work and labor training," he said.
"And it is shame because there are actually many university graduates who are not working, but refuse to do labor work," he added.
In response to the rise of jobless in the city, the City Council called on the city administration to intensify the promotion of government-funded training workshops (BLK) as temporary solutions for the unemployed.
"Jakarta residents have not been educated enough about the existence of BLKs. Considering the rise in unemployment, the city should really intensify its efforts to promote the BLK," said Nurmansjah Lubis, secretary of the council's Commission B for economic affairs.
Nurmansjah said the city should have no problems in funding worker training programs using the BLK, as the council had continued to increase the budget for the BLK program, with this year's budget amounting to about Rp 5 billion (US$480,000) or a 150 percent increase from last year's budget of Rp 2 billion.
Jakarta has seven BLKs, all of which have programs sending graduates to work overseas. "There are even many who have been sent to Middle East countries and are making between Rp 15 million to Rp 20 million [a month]," Nurmansjah said.
Aliman Aat, chairman of the City Council's Commission B, echoed Nurmansjah's statement, adding the city manpower agency should help the city administration introduce and promote BLKs to residents.
"The agency must make BLKs more available to the public, especially for high school graduates who can't afford to pursue a higher education," he said.
As previously reported by the BPS, Jakarta's workforce rose by 200,000 in February this year compared to the same month last year, with women making up most of the number due to the global financial crisis forcing previously single-income families to become double-income families.
However, this also increased the number of unemployed, with the open unemployment level rising to 11.99 percent by February this year compared to 11.06 percent in the same month last year.