Is Banten one of the highest unemployment rate in Indonesia?
Banten Province faces complex economic and social challenges, based on data from the Badan Pusat Statistik (BPS) it has the highest unemployment rate in Indonesia at 7.02% as of February 2024, despite having eight special industrial estates, while its economic growth is below the national average at 4.7% in the second quarter of 2024, affected by the phenomenon of factory relocation after the Covid-19 pandemic which caused massive layoffs and low employment.
How the number of employment and unemployment in Banten?
If we see in Employment Number in Banten 2019-2023 graph, there's increases in employement number from 2019-2022. But in 2023, there's dramatic decreases in employment. The recent year is lower than 2019. Dramatic decrease in employment is the impact result from decreases in Labor Force number in Banten.
Based on this data, as we can see there is increases in unemployment in 2020. Because the impact from the Covid-19 pandemic that happened in Indonesia. And after that, there's a good trend because the number getting lower after the pandemic. In 2023, the number is lower than 2019. But we cannot say this is a good comparison, because there's a differences in Labor Force in Banten 2019-2023.
As we can see, there's increases in Labor Force in Banten start from 2019-2022. When in 2023, we got dramatic decrease and lower than 2019. Of course is this affect with the employment number in Banten.Â
What Factors that can affect in employment and unempolyment in Banten especially?
1. Economic Growth
Banten's relatively low economic growth is one of the causes of the high unemployment rate. In the second quarter of 2024, Banten's economy only grew by 4.7% on an annualised basis, below the national growth of 5.07%4. This slow economic growth hampers the creation of new jobs.
