Less than 16% of workers hold middle-class jobs in Indonesia, with the majority of the population earning even less. With the COVID-19 pandemic making it significantly harder for people to maintain jobs, Indonesia is working to increase the number of jobs accessible to those suffering from poverty. However, while Indonesia successfully created 2.4 million jobs every year from 2009 to 2019, few offered middle-class benefits. Providing more middle-class jobs can be beneficial to people living in poverty. There are a few things to prioritize in expanding middle-class jobs to Indonesians in underserved communities. In order to increase the availability of middle-class jobs, it is important to focus on methods that will help people have more job opportunities.

The Benefits of Middle-Class Jobs

Increased availability of middle-class jobs benefits every citizen in Indonesia. Focusing on ways to create middle-class jobs can help alleviate poverty in the nation. Families with middle-class jobs live a better life and have access to essential resources. Middle-class workers enjoy the guarantee of more money and increased outcomes within the workforce. Workers feel more comfortable in a middle-class job with different resources available to guide them.

The Need for Middle-Class Jobs in Indonesia

When it comes to alleviating poverty in Indonesia, middle-class jobs help both those living in poverty as well as those no longer suffering from it. The lack of structural transformation, laborers’ transition across economic sectors over time, plays a huge role in the low number of middle-class jobs. Over the 17-year period from 2000 to 2017, Indonesia’s structural change only contributed 1% value per capita annual growth.

Other areas requiring emphasis include health and education. Only 43% of the labor force completed more than a lower-secondary education. Policies that focus on benefits received from middle-class jobs can encourage more people to want a middle-class job. It is also important to be attentive to different skills that are necessary for certain jobs. This includes informing Indonesians of what they need to know so that the people can be eligible for more opportunities. From emphasizing the importance of school to helping those in need, prioritizing these things can help increase the number of middle-class jobs.

Possible Solutions

There are other barriers preventing the creation of middle-class jobs in Indonesia and contributing to the nation’s poverty. Making adjustments to businesses within the country will make it easier to increase the availability of middle-class jobs. For example, households are responsible for two-thirds of Indonesian jobs, while larger employers and companies are scarce. There needs to be more focus on creating policies such as tax incentives and providing resources for workers. Another thing to consider is increasing middle-class jobs by improving the country’s workforce. Teaching younger citizens the skills essential to current jobs is one way to accomplish this.

On Track to Success

The COVID-19 pandemic brought more challenges to Indonesia, which resulted in many citizens not having employment. Some areas that need more attention to increase the availability of middle-class jobs are the education system and manufacturing industries. It is also important for the government to create policies to help workers. Indonesians will greatly benefit from working middle-class jobs with increased pay and greater access to much-needed resources. With these measures, one can be optimistic about alleviating Indonesia’s poverty levels.

– Chloe Moody
Photo: Flickr