The labor supply and demand specifically in the region of Banten Province has been a continuous problem. They have registered economic growth but unemployment is still an issue. The latest data from the BPS which was published in 2024 indicates that the open unemployment in the province of Banten stands at 9.09%, as opposed to the one recorded in the year 2022 which was at 10.64%. Nevertheless, this percentage is still socking since it is above average figures recorded in other regions of over 5.86%.
The total population of Banten province in the year 2023 stood at 55.6 % where 5.05 million were employed while 500 thousand remained unemployed. The largest sector contributing to employment is manufacturing industries with an estimation of 24% and around 23% of the total workforce being employed in Trade services.
The percentage of total labor force in Banten province can be analysed more effectively using a data representation of the years 2023, where Manufacturing in 24%, Trade Services in 23%, Agriculture 15%, Construction 12%, Transportation 10% and Other 16%.
The BPS report also indicates that the percentage of poverty reduced to 5.84% as at March of 2024. This percentage had previously been 6.17% in March 2023. This trend depicts consistent improvement but the issue of unemployment remains a challenge.
In Banten Province, the consequences of COVID-19 were quite severe in the labor market. In fact, numerous employees either became jobless or turned to the informal economy. Such negative impacts were, nevertheless, somewhat alleviated by government social support programs. However, as early as 2023, a recovery from the economic downturn began to take shape, with a growth rate of 5.18% creating the right conditions aimed at expansion and new job recruitment.
To address the problems related to the imbalance between labor supply and demand in Banten Province the following actions need to be undertaken, The first one is Skills Training Improvements, this action fostering improvement in skill training for the workforce according to industry requirements further boosts the capabilities of workers.
The next one is Investment Attraction, this action fostering investments in the overgrown sectors such as formulating industries and agronomy helps create more opportunities for employment.
And the third one is Infrastructure Development, Development of transport and communication infrastructure facilities promote economic development and improve access to workplaces. And the last one is Assessment of the Minimum Wage Policy, having an evaluation of the minimum wage laws will avoid any barriers occurring in relation to the building of new employment opportunities.
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