KEY INDICATORS OF THE LABOUR MARKET - KILM

Key Indicators of the Labour Market-KILM There are 20 KILM indicators suggested by the ILO. but only 13 that can be adopted in the National Labour Force Survey (with check marks): KILM 1: Participation in the world of work √ KILM 2: Employment-to-population ratio √ KILM 3: Status in employment √ KILM 4: Employment by sector √ KILM 5: Part-time workers √ KILM 6: Hours of work √ KILM 7: Employment in the informal sector √ KILM 8: Unemployment √

Key Indicators of the Labour Market-KILM (cont) KILM 9: Youth unemployment √ KILM 10: Long-term unemployment KILM 11: Unemployment by educational attainment √ KILM 12: Time-related underemployment √ KILM 13: Inactivity √ KILM 14: Educational attainment and illiteracy indicator √ KILM 15: Wage and labour cost indicators KILM 16: Occupational wage and earning indices KILM 17: Hourly compensation costs KILM 18: Labour productivity KILM 19: Employment elasticities indicator KILM 20: Poverty. working poverty and income distribution indicator

KILM 1. Participation in the world of work The labour force participation rate (LFPR) is a measure of the proportion of a country’s working-age population that engages actively in the labour market. either by working or looking for work. It provides an indication of the relative size of the supply of labour available to engage in the production of goods and services.

The LFPR by Sex (%). 2014 - 2015

The LFPR by Sex (%). 2014 - 2015 (cont) The LFPR is lower for females than that of males. In August. the LFPR of males is 82.71 %, while that of females is 48.87 %. In general. the LPFR increases as they get older, and reached its peak at the 40-44 age group. The LPFR of females reached its peak at the 45-49 age group, whereas that of males reached its peak at the 40-44 age group.

The LFPR by Age Group and Sex. August 2015 Age Groups Male Female Total 15-19 31.83 22.80 27.41 20-24 80.80 51.97 66.53 25-29 94.66 51.78 73.32 30-34 97.05 52.39 74.61 35-39 97.83 55.23 76.49 40-44 97.91 60.20 79.15 45-49 97.55 60.45 79.05 50-54 94.74 59.71 77.18 55-59 88.86 55.45 72.27 60+ 62.94 32.44 46.85 82.71 48.87 65.76

KILM 2. Employment-to-population ratio The employment-to-population ratio is the proportion of a country’s working-age population that is employed. A high ratio means that a large proportion of a country’s population is employed. while a low ratio means that a large share of the population is not involved directly in market-related activities. because they are either unemployed or (more likely) out of the labour force altogether.

The Employment-to-population ratio. 2014 - 2015  EPR 2014 2015 February August Total 65.23 62.64 65.46 61.70 Male 80.26 78.27 79.71 77.69 Female 50.26 47.08 51.28 45.76

The Employment-to-population ratio. 2014-2015 (cont) From August 2014 to August 2015 employment to population ratio was decrease from 62.64 to 61.70 EPR for females are significantly lower than that of males EPR for males and female appear to decline from August 2014 to August 2015.

KILM 3. Status in employment The indicator of status in employment distinguishes between three categories of the total employed. These are: wage and salaried workers (also known as employees); self-employed workers; and unpaid family workers. These three groups of workers are presented as percentages of the total employed.

Percentage of Employment by Status. 2014-2015 February August Total 100.00 a. Wage and salaried workers 36.68 36.97 38.58 38.70 b. Self-employed workers 47.13 48.37 46.78 47.31 i. Self-employed workers with employees (employers) 3.51 3.65 3.48 3.54 ii. Own account workers 33.90 34.69 33.47 32.85 iii. Casual Workers 9.72 10.03 9.83 10.92 c. Unpaid family workers 16.19 14.66 14.64 13.99 Vulnerable employment (ii + iii + c) 59.81 59.38 57.94 57.76

Percentage of Employment by Status. 2014-2015 (cont) The highest percentage of employment by status is self- employed workers, followed by wage and salaried workers. and own account workers. Wage and salaried workers appears to increase from August 2014 to August 2015. There are about 57.76 percent of employment categorized as vulnerable employment in August 2015. There is still a large percentage of unpaid family workers.

KILM 4. Employment by sector The indicator for employment by sector divides employment into three broad groupings of economic activity: agriculture, manufacture, and services. Sectoral information is particularly useful in identifying broad shifts in employment and stages of development.

Percentage of Employment by Sector. 2014-2015 February August Agriculture 34.56 34.00 33.20 32.88 Manufacture 20.76 21.16 21.37 21.84 Services 44.68 44.84 45.43 45.28 Total 100.00

Percentage of Employment by Sector. 2014-2015 (cont) The largest percentage of employment by sector is in services. followed by agriculture and manufacturing Employment in the service sector tend to increased from February 2014 to August 2015 There is a tendency for employment in agriculture to decline from Februariy 2014 to August 2015

KILM 5. Part-time workers The indicator on part-time workers focuses on individuals whose working hours total less than “full time”, as a proportion of total employment. Two measures are calculated for this indicator: Total part-time employment as a proportion of total employment (part-time employment rate) The percentage of the part-time workforce comprised of women/female shares of part-time employment

Part-time employment rate and female shares of part-time employment (%). 2014-2015 February August Total 22.34 22.76 21.21 21.40 Male 15.63 16.55 15.11 15.25 Female 33.02 33.04 30.66 31.81 Female shares of part-time employment 57.06 54.67 56.72 55.24

Part-time employment rate and female shares of part-time employment (%). 2014-2015 (cont) Part time employment rate appears to be decreasing from August 2014 (18.33 percent) to August 2015 (21.90 percent). The pattern is similar for both male and female part time workers. Part time employment rate is much higher for females than males. More than half of part time workers are female

KILM 6. Hours of work This KILM measures relates the number of people employed by hours of worked (usually or actually): less than 25 hours of work per week. between 25 and 34 hours. between 35 and 39 hours. between 40 and 48 hours. between 49 and 59 hours. and 60 hours to the top. as the data is available.

Percentage of Hours of work. 2014-2015 Work of Hours 2014 2015 February August Total 100.00 0 hour 2.19 2.41 2.10 1.72 1 - 14 hours 6.16 5.83 6.24 5.63 15 - 24 hours 11.67 11.97 10.89 11.37 25 - 34 hours 13.45 13.40 12.39 12.89 35 - 39 hours 10.09 9.66 10.35 9.86 40 - 48 hours 30.38 30.76 30.34 32.22 49 - 59 hours 14.93 14.78 15.30 14.81 60 hours and over 11.13 11.19 11.51

Percentage of Hours of work. 2014-2015 (cont) Almost 70 percent of workers in Indonesia worked for more than 35 hours per week. Two third of them worked more than 49 hours per week. Thirty percent of workers worked under the normal hours (less than 35 hours per week). Workers who worked normally 35-39 hours per week is around 10 percent. There were not much different in patterns of working hours in every cycle of the survey.

KILM 7. Employment in the informal sector The KILM 7 indicator is a measure of employment in the informal sector as a percentage of total employment. BPS conduct a specific approach in determining the working population in the formal/informal. based on the status of the main work and the main occupation.

Percentage employment by sex and sector. 2014-2015 February August Formal Male 64.94 65.69 64.67 65.71 Female 35.06 34.31 35.33 34.29 Total 46.41 46.76 48.15 48.28 Informal 58.31 59.41 57.13 60.16 41.69 40.59 42.87 39.84 53.59 53.24 51.85 51.72

Percentage employment by sex and sector. 2014-2015 (cont) More than 50 percent are working in the informal sector The percentage of informal sector employment tend to decrease from February 2014 to August 2015 The percentage of informal workers was higher for Male than Female The pattern of informal worker were fluctuative both for male and female.

KILM 8. Unemployment The unemployment rate simply tells us the proportion of the labour force that does not have a job but is available and actively looking for work. It should be emphasized that it is the labour force or the economically active portion of the population that serves as the base for this statistic. not the total population.

Unemployment Rate by Sex (%). 2012 2014 2015 February August Male 5.62 5.75 5.76 6.07 Female 5.84 6.26 5.89 6.37 Total 5.70 5.94 5.81 6.18

Unemployment Rate by Sex (%). 2014-2015 (cont) Unemployment rate in Indonesia in August was 6.18 percent. There was a increase of 0.24 percent in unemployment rate from August 2014 to August 2015. Unemployment rate was higher among females than males. Unemplyment rate for males tend to decreased from February 2014 to August 2015. Unemplyment rate for females from February 2014 to August 2015 was fluctuative.

KILM 9. Youth unemployment Youth unemployment as a proportion of the young population. the population for that age group replaces the labour force as the denominator. For the purpose of this indicator. the term “youth” covers persons aged 15 to 24 years and “adult” refers to persons aged 25 years and over. The indicator consists of four distinct measurements, each representing a different aspect of the youth unemployment problem.

Youth unemployment indicator (%). 2014-2015 February August Youth Unemployment Rate 17.05 22.20 18.29 22.59 Male 17.40 21.72 18.51 22.25 Female 16.49 22.94 17.94 23.12 Ratio of the youth unemployment rate to the adult unemployment rate 5.13 8.13 5.58 7.78 5.54 8.10 5.84 7.51 4.56 8.16 5.21 8.24 Youth unemployment as a proportion of total unemployment 51.76 61.67 54.29 60.79 53.78 60.94 51.39 59.00 48.68 62.78 53.13 63.66 Youth unemployment as a proportion of the youth population 8.49 10.28 11.03 10.55 10.52 12.06 7.12 12.42 6.40 8.45 9.11 8.61

Youth unemployment indicator (%). 2014-2015 (cont) Youth unemployment tend to fluctuate from February 2014 to August 2015. It tends to be higher in August than in February. Male youth unemployment appears to be higher that of female in February, but slightly lower in August More than half of total unemployment are youths, although more than 50 percent of those are male youths Male and female youth unemployment as a proportion of youth population were fluctuated from February 2014 to August 2015.

KILM 11. Unemployment by educational attainment This indicator focuses on unemployment among workers categorized by their level of educational attainment. The information provided can have important implications for both employment and education policy, If it is confirmed that persons with low education levels are at a higher risk of becoming unemployed, the political reaction may be either to seek to increase their education level or to create more low-skill occupations within the country.

KILM 11. Unemployment by educational attainment (cont) Specifically. the indicator is the percentage distribution of a country’s total unemployed according to four levels of schooling: no schooling, primary level, secondary level, and tertiary level. Also shown the unemployment rate, that is the share of the unemployed in the labour force, according to four groupings of educational attainment.

Distribution of total unemployment by level of educational attainment (%). 2014-2015 February August No schooling 1,88 1,03 1,67 0,73 Primary level 51,47 43,98 47,94 36,38 Secondary level 38,35 45,48 39,39 50,92 Tertiary level 8,30 9,51 11,00 11,97 Total 100,00

Unemployment rates by level of education (%). 2014-2015 Educational Attainment 2014 2015 February August No schooling 2,53 1,42 2,46 1,25 Primary level 4,91 4,41 4,78 3,94 Secondary level 8,42 10,17 8,5 11,16 Tertiary level 4,72 5,78 5,86 6,68 Total 5,70 5,94 5,81 6,18

Unemployment rates by level of education (%). 2014-2015 (cont) Unemployment rate in August 2016 is about 6.18 percent. About half of the unemployed only finished primary In August 2016 about 11 percent unemployed population are highly educated (tertiary education) Unemployment rates are highest among secondary educated workers, followed by tertiary level graduates and those who completed primary.

KILM 12: Time-related underemployment This indicator relates to the number of employed persons whose hours of work in the reference period are insufficient in relation to a more desirable employment situation in which the person is willing and available to engage. The indicator was previously known as “visible underemployment”.

KILM 12: Time-related underemployment Two time-related underemployment rates are presented: The number of persons in time-related underemployment as a percentage of the labour force The number of persons in time-related underemployment as a percentage of total employment

Percentage of time-related underemployment in total employment by sex 2014 2015 February August Male 8.76 8.47 8.26 8.43 Female 9.23 8.40 8.38 8.57 Total 8.94 8.45 8.31 8.48

Percentage of time-related underemployment in the labour force Percentage of time-related underemployment in the labour force. 2014-2015 (cont) The percentage of time-related underemployment to total employment from August 2014 to August 2015 was increased The percentage of Time-related underemployment is higher in females than that of males. The Percentage of Time-related underemployment for females and males decrease were fluctuated

KILM 13. Inactivity The inactivity rate is the proportion of the working-age population that is not in the labour force. When added together. the inactivity rate and the labour force participation rate (see KILM 1) will add up to 100 percent.

Inactivity Rate by Sex (%). 2014-2015 February August Male 14.96 16.95 15.42 17.29 Female 46.63 49.78 45.52 51.13 Total 30.83 33.40 30.50 34.24

Inactivity Rate by Sex (%). 2014-2015 (cont) The inactivity rate is the proportion of the working-age population that are not in the labor force. Inactivity rates increased from 33.40 percent in August 2014 to 34.24 percent in August 2015 The increase in inactivity rate reflects the changing from labor force into in the not in the labor force category. Inactivity rate for males was much lower than for females (17.20 percent compared with 51.13 percent in August 2015). Inactivity rates from February 2014 to August 2015 were fluctuative both for males and females.

KILM 14. Educational attainment and illiteracy indicator KILM 14 reflects the levels and distribution of the knowledge and skills base of the labour force. This indicator shows the distribution of the educational attainment of the labour force in four education attainment level.

Percentage Labour Force by Education Attainment. 2014-2015 Educational Attainment 2014 2015 February August No schooling 4,23 4,32 3.93 3.63 Primary level 59,76 59,33 58.25 57.11 Secondary level 25,98 26,58 26.92 28.19 Tertiary level 10,03 9,77 10.90 11.07 Total 100.00

Percentage Labour Force by Education Attainment. 2014-2015 (cont) Patterns of educational attainment of the labor force were almost the same in every cicle of the survey. In August 2015 Around 4 percent of the labor force did not have education, 57 percent completed primary level, 28 percent completed secondary level, and 11 percent completed tertiary level. Eighty-five percent of the labor force have completed primary and secondary education.

THANK YOU