New jobs generated last year exceeded the number of entrants into
the labor market. The unemployment rate fell from 6.6% to 6.1% in the
12 months to August 2012, though the rate of underemployment was
barely changed at 29%. In a positive development, employment in the
formal sector rose by 6.4%, or 2.7 mil...
lion jobs, in this period, mostly in
manufacturing and construction. Informal-sector employment fell by
2.3%, or 1.5 million jobs, as workers left agriculture. Poverty declined
by 0.7 percentage points to 11.7% in the 12 months to September 2012
(Figure 3.24.7). Contributing factors were lower food price inflation,
higher wages for agricultural and construction workers, and better
incomes for farmers.
Sources: Statistics Indonesia. http://www.bps.go.id; CEIC Data Company (both accessed 16 March 2013).
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