The Size of Indonesia EM Labour Market

Indonesia EM Labour Market
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Indonesia EM Labour Market
The Size of Indonesia EM Labour Market
The demographic changes, globalization, and digital revolution are significantly shaping and transforming Indonesia’s emerging labor market at a time when legislatures are struggling with high levels of revenue inequality, wage growth, and slow productivity. The Organization for Economic Co-operation and Development (OECD) new job strategy offers a policy recommendation and a comprehensive approach to help countries to address unemployment problems (Offor, 2018). According to the OECD strategy, the EM labor market in Indonesia is close to the Organization for Economic Co-operation and Development average although the rate of underutilizing the country’s resources are higher than the OECD's average of 29.6%. The price of open unemployment in Indonesia has nearly halved in the last ten years to close to the OCED's median. Compared to other countries covered by the OECD, the measures for job quality and employment rates are relatively low in Indonesia (Borzaga, Salvatori & Bodini, 2017). High earning inequality and low earning average significantly lowers the earning percentage in the country compared with other countries with emerging economies. Also, Indonesia's EM economy is characterized by a lack of unemployment insurance and widespread informalities which lead to insecurity in the labor market.
The Composition of Indonesia’s EM Labour Market
The level of inclusiveness in Indonesia's emerging labor market is weak. Research shows that there is an estimated gap of 62.9% between the average monthly income generation between men and women in Indonesia (Borzaga, Salvatori & Bodini, 2017). The disparity is partly caused by a significantly vast gap between men and women's participation in the EM labor market in the country. Additionally, the difference is partly caused by the p...