Employment Dynamics in the Midst of Limited JobOpportunities and Rising Termination of Employment inIndonesia

Abstract

This study examines the dynamics of employment in Indonesia in the midst of a crisis characterized by limited employment opportunities and increased layoffs. The main focus of this study is to examine the factors causing limited employment opportunities as well as the triggers for increased layoffs, especially after the pandemic and in an uncertain global economic situation. The purpose of this study is to analyze the social and economic impacts of the phenomenon and assess the effectiveness of government policies that have been implemented. The research was conducted using qualitative methods through desk research and in-depth interviews with affected workers, businesses, and policymakers. The findings show that the reduction in employment is influenced by the acceleration of digitalization that is not in line with the increase in workforce competence, as well as the high dependence on international markets. Massive layoffs occurred in the manufacturing and services sectors due to efficiency strategies and declining demand. Government programs such as pre-employment cards and employment incentives have not been effective enough in responding to this situation. Therefore, this study suggests the need for a long-term, data-driven employment policy as well as improving the quality of human resources through training that is relevant to industry needs