The government claims that there has been a decline in unemployment and an increase in job creation through various cross-sector programs. BPS data shows a positive trend, although there are several weaknesses in these programs, such as job quality and program sustainability.
Several of the government's current flagship programs are also touted as job creation engines. These are:
- Free Nutritious Meals (MBG);
- Merah Putih Village Cooperative;
- Public School;
- Red and White Fisherman Village Program;
- Revitalization of fish ponds in the Pantura region.
Read the review here.
There are several potential benefits that can be seen from these programs. For example, there are projections of significant employment absorption, reaching hundreds of thousands to millions of new jobs. In addition, these programs target traditional sectors that absorb a large workforce.
However, there are several points that the government needs to pay attention to in implementing this program. For example, many of the projected absorption figures are only on paper and have not been proven in the field. There is the potential for labor shifting rather than new job creation with the entry of new workers. There is also dependence on the state budget and program sustainability.
Therefore, an analysis of policy implications is needed, such as:
- Clear baseline data to distinguish between "new employees" and "relocated employees."
- Impact evaluation based on quality indicators, not just quantity.
On the other hand, reforms in the labor sector also face challenges, as the workforce employed in the informal sector still dominates.
To accelerate the transition of informal sector workers to the formal sector, the government has actually designed three main strategies to be implemented simultaneously.
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First, creating formal jobs based on the green economy and industrial digitalization.
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Second, improving workforce competencies through vocational training and industrial apprenticeships.
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Third, strengthening employment services through the digitization of the national system via the SIAPKerja platform.
Read the review here.
The government has shown progress in reducing unemployment, but the sustainability and quality of jobs remain a major challenge. Many programs have great potential, but implementation, regulation, and impact measurement need to be strengthened. The focus going forward must shift from simply "the number of jobs" to "the quality of jobs" and "labor market resilience."
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