There is a shift in labor absorption between sectors. For example, the education sector experienced the largest increase in employment of 78.93 thousand people in February 2024.
8. Minimum Wage
Banten's relatively high minimum wage (IDR 2,727,812 in 2024) compared to other provinces such as Central Java (IDR 2,036,947) may influence companies' decisions in recruiting workers.
How to increase it based on Human Resource Economic theory?
To address the unemployment challenges in Banten, policymakers should focus on enhancing human capital through targeted education and training programs. By investing in skills development that aligns with the needs of local industries, particularly in the eight special industrial zones, Banten can create a more skilled and adaptable workforce.Â
This approach, rooted in human capital theory, suggests that improving workers' knowledge and abilities will increase their productivity and employability, ultimately leading to reduced unemployment rates.
after that, the government should collaborate with private sector companies to develop intership programs and on-the-job training opportunities. These initiatives would allow workers to gain practical experience and industry-specific skills, making them more valuable in the job market.Â
By fostering a culture of lifelong learning and continuous skill improvement, Banten can build a resilient workforce capable of adapting to changing economic conditions and technological advancements, thus creating a more dynamic and prosperous labor market in the long term.
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