Grappling with employment problems in Aceh

Crawford School of Public Policy | Arndt-Corden Department of Economics | Indonesia Project

Event details

Indonesia Study Group

Date & time

Wednesday 10 September 2014


Seminar Room B (Arndt Room), Coombs Building, Fellows Road, ANU


Dr Chris Manning, Arndt-Corden Department of Economics, Crawford School, ANU.


Indonesia Project
6125 5954

The presentation focuses job creation in Aceh in the post-recovery period. It identifies two major challenges: high rates of unemployment (especially among females and youth) and low levels of labor productivity, particularly in agriculture and services. High unemployment has been a consequence of a shortfall in the demand for labor from business and government, unrealistic expectations and a disparity between the skills and the mix of jobs on offer. Productivity growth has been low in Aceh even though economic performance has been credible in a period marked by a dramatic shift away from dependence on oil and gas production. People have been locked into low productivity jobs partly as a legacy of both the tsunami and period of political conflict, and this underpins high rates of poverty. Female rates of participation in the work force are low in Aceh, and unemployment and under-employment among females are high by national and even international standards. In the future, economic and education policy will need to be more oriented towards the needs of females and rural communities, given the concentration of labor in the agricultural sectors.

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