JAKARTA - The Ministry of Industry claims that the manufacturing industry has managed to absorb more than 1 million workers throughout 2024.
This figure is much greater than the number of layoffs (PHK) reported by the Ministry of Manpower, which was around 77,965 people in the same year.
However, based on BPS 2024 data, it shows that the number of unemployed in August 2024 reached 7.47 million people, an increase from 7.20 million people in February 2024. In addition, layoff cases increased by 20.2 percent compared to the previous year.
This condition raises questions about the validity of government claims related to employment and requires further verification?
Jakarta Veterans UPN Public Policy Expert Achmad Nur Hidayat said the quality of employment in Indonesia is often measured through indicators such as open unemployment rates, layoffs, and the number of new jobs created, however, these indicators do not fully reflect the real conditions in the field.
Achmad gave an example, such as the open unemployment rate in August 2024 was recorded at 4.91 percent, a decrease compared to August 2023 which was 5.32 percent where this decline could be interpreted as an improvement, but did not immediately reflect improving job quality or worker welfare.
"In addition, the number of layoffs reported officially may not cover all cases that occurred, especially in the informal sector. Many informal workers are not recorded in official data, even though they are vulnerable to layoffs and do not have adequate social protection," he said in his statement, Monday, March 10.
Achmad conveyed that the absence of accurate data regarding informal workers made the evaluation of employment quality not comprehensive.
According to him, employment is an important indicator in assessing the economic performance of a government.
Therefore, Achmad said that in the progress of the last 20 years, during the era of President Susilo Bambang Yudhoyono in 2004 to 2014, the jobs created in the formal sector managed to absorb around 15.62 million workers. However, in the era of President Joko Widodo in 2014 to 2024, new jobs created were only around 10.56 million jobs, showing a decline compared to the previous period.
Achmad said this decline could be caused by a policy priority error to massive Infrastructure that does not prioritize local workers.
"Apart from a number of other factors, including automation and digital transformation, which reduces the need for labor in certain sectors," he explained.
Achmad said that the absorption of labor in 2025 will depend on various factors, including economic growth, investment, and government policies.
To overcome the threat of layoffs in the future, Achmad said there are several strategic steps that can be taken, such as economic policies that prioritize economic diversification, and reduce dependence on certain sectors by encouraging growth in various economic sectors.
Then, increase the skills of productive age, namely by conducting vocational training and education to improve labor skills according to industrial needs.
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Furthermore, the protection of informal workers is in providing access to social security and protection programs for workers in the informal sector.
Achmad said that the next thing, namely innovation and technology, such as encouraging technology adoption and innovation to create new job opportunities and increase productivity.
"With a comprehensive approach and collaboration between the government, the private sector, and the community, the challenges of employment can be overcome to achieve inclusive and sustainable economic growth," he said.
Achmad said the government's claims regarding high employment need to be verified with transparent and accurate data because at this time it seems that the government data is not in sync between Ministries/Agencies and this difference shows the level of employment data realization.
"The increase in the number of layoffs and the number of unemployed shows that there are still many challenges that must be overcome in the employment sector. Therefore, collaborative efforts are needed between the government, the private sector, and the community to create quality and sustainable jobs," he explained.
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