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Jakarta Post

Unemployment target under threat due to impact from global crisis

The Bali Manpower and Transmigration Agency will unlikely be able to meet its target unemployment rate of 3

The Jakarta Post
Tue, November 4, 2008

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Unemployment target under threat due to impact from global crisis

The Bali Manpower and Transmigration Agency will unlikely be able to meet its target unemployment rate of 3.5 percent due to the global economic slowdown caused in part by the U.S. sub-prime mortgage debacle.

"I think we have to reconsider the target because there is no certainty from the government that it will cushion the impact from the global crisis," head of the agency's work force placement and employment division, Anak Agung Putra Adi, told The Jakarta Post over the weekend.

He was concerned people would reconsider and decide to economize on their travel plans due to the economic slowdown, thus decreasing the number of tourists, he said.

"If the tourism industry is affected, I am afraid the unemployment rate here will increase as well because that industry accounts for 65 percent of the island's jobs," Putra Adi said.

As of July 2008, out of a labor force numbering 2.09 million over 15 years old, at least 95,000 or 4.56 percent, were unemployed, according to data from the Bali office of the Central Statistic Agency (BPS).

By comparison, last year's unemployment rate was 3.7 percent, or 77,577, of 2.05 million potential workers.

Before the financial crisis, even getting a job in Bali was difficult, especially in the tourism industry which has seasonal characteristics. Meanwhile, finding a job that the Balinese desire is another challenging task.

Alit Puspawati is an example. The 29-year-old mother was patient for five years, doing work she did not really like before finally landing her dream job as a spa therapist at Le Meridian Hotel in Tabanan, Bali, almost three years ago.

"It's difficult to get a job. Four months after I graduated I was lucky to spot a vacant position in the hotel's kitchen and was hired," Alit said.

Alit added she was unemployed for the first four months after she had graduated.

Working in the kitchen, however, was laborious and tiring because there were so many different menus to prepare for all the guests, Alit said.

While trying to stay motivated in her job, she kept her enthusiasm alive by repeatedly checking a therapist position in the spa.

"I saw a vacancy in the spa almost three years ago. Although both jobs take physical effort, I enjoy the spa much better. It's probably because I like the work," Alit said, smiling.

She said her younger sister, who had graduated from the same college as she did, had given up trying to find a job and eventually decided to stay at home to take care of her child.

Alit's sister is not alone. Nationally, BPS data shows that the number of unemployed people has decreased to 9.43 million as of February of this year compared to 10.01 million of Indonesia's total population of 220 million in February of last year. -- JP/Indah Setiawati

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