book
Skills for the Labor Market in Indonesia: trends in demand, gaps, and supply
The years since 1990 in Indonesia have been a time of great economic progress but also massive transformations and abrupt setbacks, almost half of working adults were employed in the formal sector, reflecting an unprecedented movement of poor rural workers away from their farms to the industrial and service sectors. But then the Asian financial crisis hit, and real GDP fell by 13% in one year. The result was an escalation of poverty and a mass migration back to the farms. Until 2003 and despite the economic rebound after the crisis, agricultural employment continued to grow at the expense of formal employment, resulting in jobless growth. As the Indonesian economy returns to higher growth rates, identifying and addressing potential skill mismatches will be key not productivity, competitiveness, and growth. Within this context, ""Skills for the Labor Market in Indonesia"" investigates trends in skills demand and supply for insights into ways to build and use the critical skills needed to improve growth, competitiveness, and innovation. This book is the most comprehensive attempt so far to analyze these issues. Using an innovative employer/employee skill survey, the book documents the existence of a possible skill mismatch between employer demand and available supply, contributions of education and training sectors to this mismatch, and practicable measures to improve the education and training sectors' responsiveness to what the worker, the labor market, and the economy need.
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