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August 22, 2008

ILO urges Indonesia to link growth to job creation

Indonesia needs to place decent and productive employment at the center of its socio-economic policies to ensure a link between economic growth and job creation, the Jakarta Post quoted the International Labor Organization (ILO) as reporting Thursday.

In its latest report titled "Labor and Social Trends in Indonesia 2008: Progress and Pathways to Job-rich Development", ILO's Indonesia office said that Indonesia's economy showed healthy enhancement between 2000 and 2007, but labor market outcomes had not improved dramatically.

The ILO found the employment rate fell to 9.1 percent in 2007, from 11.2 percent in 2005, but this was not accompanied by a rise in the number of involuntary underemployed. The number of those fully employed in 2007 was actually less than the 2002 level.

The report predicted that underemployment would drop to 7 percent by 2009.

"This report presents socio-economic and labor market trends in Indonesia, with the aim of drawing attention to key policy challenges and informing the development of Indonesia's next Medium-term Development Plan (2010-2024)," ILO country director Alan Boulton was quoted as saying.

The report also noted poverty remained largely a problem of theemployed. It estimated about one in two employed persons were classified as poor under the 2 U.S. dollars -a-day poverty criteria.

Indonesia's labor productivity, the report added, grew at a healthy annual average of 4.3 percent between 2000 and 2007.

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