Employment and growth in Indonesia (1990–2015)

EMPLOYMENT Working Paper No. 239

This paper examines the employment situation in Indonesia during and in the aftermath of the Asian Financial Crisis and the Great Recession, including importantly how the quality of work responded to the changing composition of Indonesia’s growth process. The authors find that many labour market indicators have moved in an encouraging direction, but a decomposition of labour productivity indicates that productivity growth has been driven primarily from efficiencies “within” sectors rather than the allocation of labour across sectors. Facilitating and managing the structural transformation process in a fair and inclusive manner can further support Indonesia’s socioeconomic development.