The Measurement and Trends of Unemployment in Indonesia: The Issue of Discouraged Workers

26 Pages Posted: 5 Dec 2005

See all articles by Daniel Suryadarma

Daniel Suryadarma

Australian National University (ANU) - Arndt-Corden Department of Economics; SMERU Research Institute

Asep Suryahadi

SMERU Research Institute

Sudarno Sumarto

SMERU Research Institute

Date Written: July 2005

Abstract

This study reviews the measures of unemployment used in Indonesia. The finding indicates that the relaxation of labor force definition in 2001 by including discouraged workers results in artificially high unemployment rates and disguises the actual decline in unemployment post-crisis. Another finding indicates that discouraged workers in Indonesia are not confined only to the poor and those who are denied access to the proper job market. We recommend that, if Indonesia still wants to utilize a broader definition of the labor force, it should adhere to the ILO's recommendation of only including those discouraged workers who are still willing to work.

Keywords: discouraged workers, open unemployment, measurement, Indonesia

JEL Classification: J60

Suggested Citation

Suryadarma, Daniel and Suryahadi, Asep and Sumarto, Sudarno, The Measurement and Trends of Unemployment in Indonesia: The Issue of Discouraged Workers (July 2005). Available at SSRN: https://ssrn.com/abstract=861464 or http://dx.doi.org/10.2139/ssrn.861464

Daniel Suryadarma (Contact Author)

Australian National University (ANU) - Arndt-Corden Department of Economics ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

SMERU Research Institute ( email )

Jl. Pandeglang No. 30
Jakarta, 10310
Indonesia
62 21 31936336 (Phone)
62 21 31930850 (Fax)

HOME PAGE: http://www.smeru.or.id

Asep Suryahadi

SMERU Research Institute ( email )

Jl. Cikini Raya No. 10A
Jakarta, 10330
Indonesia

HOME PAGE: http://www.smeru.or.id

Sudarno Sumarto

SMERU Research Institute ( email )

Jl. Tulung Agung No. 46
Jakarta, 10310
Indonesia

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