The Threat Of Global Recession, Minister Of Manpower Ida Is Worried That There Will Be Mass Layoffs

Minister of Manpower Ida Fauziah when directly observing the activation of accounts of workers receiving wage subsidy assistance (BSU) from the government, in Cilegon (Mulyana/Antara)

JAKARTA - The Minister of Manpower (Menaker) Ida Fauziyah mentioned the threat of a global recession in 2023. He admitted that he was worried that the global recession would have an impact on the employment sector in Indonesia. One of them is related to termination of employment (PHK). "Indeed, our condition is now starting to recover (from the impact of the COVID-19 pandemic), but other problems have also emerged, including the threat of a global economic recession that could have an impact on the employment sector, such as mass termination of employment," he said in Jakarta, Sunday, October 30. Moreover, continued Ida, the world is currently facing industrial revolutions that have given birth to automation and disruption in various fields, as well as significantly changing the job market landscape in Indonesia. "As a result of disruption, many jobs are lost on the one hand, but on the other hand, more new jobs are growing. This is what we call future jobs, or future works," he said. Ida said, the key to answering the challenges and opportunities above is the improvement of human resources, including competence and competitiveness. This is in line with President Joko Widodo's (Jokowi) policy which places the development of human resources as a national development priority as stated in the 2020-2024 RPJMN.

In addition, said Ida, vocational education and vocational training are also needed. Ida explained that this is a solution to increase the competitiveness of the workforce and reduce unemployment. This is regulated in Presidential Regulation Number 68 of 2022 concerning the Revitalization of Vocational Education and Vocational Training. "In line with the President's policy, we have also initiated a transformation in the labor sector," he said. Ida said the transformation steps were outlined in the 9 jumps of the Ministry of Manpower, namely the BLK Transformation, Link and Employment Match, Employment Opportunity Expansion Reform, Development of Young Talents, Foreign Work Market Expansion, New Vision of Industrial Relations, Reform of Manpower Supervision, Development of Employment Digital Ecosystems, and Bureaucratic Reform.