Spatial dimensions of key employment outcomes in Indonesia

This paper gauges spatial inequality in Indonesia beyond the traditional focus on income and consumption by mapping a small subset of employment-related indicators in Indonesia disaggregated by provinces over time (1996-2011). It looks beyond the conventional indicators of unemployment rate such as formal employment, wage inequality, low-pay incidence and percentage of youth NEET (not in employment, education or training). Three observations stand out. First, while the unemployment rate continued to decline from 2005, regional variations were relatively high and showed an increasing trend. Second, the magnitudes of regional variations of indicators reflecting the quality of employment (e.g. formal employment and waged employment) were also high. Third, gender gaps in most of the employment-related indicators were declining but from very high levels. It is suggested that Indonesia should concentrate more on indicators reflecting the quality of employment with clear targets set, disaggregated into sub-national levels. For this, the evolution of spatial inequalities with regard to employment outcomes should be better and more regularly monitored.