August 28, 2020, 02.01 AM
Indonesians stage mass protest against layoffs during the Covid-19 pandemic in Jakarta. ANTARA FOTO/ADITYA PRADANA PUTRAIndonesians stage mass protest against layoffs during the Covid-19 pandemic in Jakarta.

JAKARTA, KOMPAS.com – The number of unemployed in Indonesia could reach 11 million at the end of 2020 after the country’s sharp economic contraction.

“We estimate that the ranks of the unemployed in 2020 will reach 11 million, an  increase of 4-5 million people,” said National Development Planning Board’s (Bappenas) manpower and employment opportunity development director Mahatmi Parwitasari Saronto in a webinar on  August 27.

This is based on the assumption of Indonesia’s gross domestic product (GDP) hitting negative 0.4 to 1 percent the end of this year.

Also read: Indonesia’s Economy Contracts 5.32 Percent, Says Central Statistics Agency

“Our economy will grow relatively low. It is estimated that it will only reach minus 0.4 percent to 1 percent,” said Mahatmi.

“Every 1 percent of economic growth should be creating 500,000 new jobs. But we would not be able to achieve it. We projected that it would reach 300,000 jobs instead,” she said.

Meanwhile, in 2021 the economy is expected to rebound and it will grow about 4.5 percent to 5 percent. However, the number of unemployed people will be between 10.7 million and 12.7 million.

Also read: Nearly 2,200 Volunteers Sign Up for Covid-19 Vaccine Trials in Indonesia

Before the Covid-19 pandemic, the government set a target of 5 percent for the open unemployment rate (TPT) in 2020.

“However, due to the Covid-19 pandemic, layoffs and new workforce have entered in June with no further education, the TPT this year will reach between 8.1 and 9.2 percent,” she said.

(Writer: Ade Miranti Karunia | Editor: Sakina Rakhma Diah Setiawan)

Source: https://money.kompas.com/read/2020/08/27/190600626/bappenas-prediksi-jumlah-pengangguran-tahun-ini-capai-11-juta-orang.

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