“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.
“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.
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.
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