The government estimated unemployment rate this year may decline to 7.6 percent if the economy expands 5.8 percent, assuming that every 1 percent growth will absorb 400,000 laborers.
Coordinating Economic Minister Hatta Rajasa told reporters from 2000 to 2006 every 1 percent growth absorbed 200,000 laborers, but in the past three years such growth could absorb up to 400,000 laborers.
"If this happens, the new workforce can be absorbed in addition to the existing unemployed," he said Friday.
The latest data from the Central Statistics Agency (BPS) revealed that between August 2008 and August 2009 there were 1.88 million new people in the workforce.
The unemployment rate in August last year reached 7.87 percent of 113.83 million in the total workforce, the data showed.
Hatta estimated the poverty rate this year was expected to drop to between 12 percent and 13.5 percent this year from 14.15 percent in March 2009, as recorded by the BPS.
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