Employment Opportunities for the Urban Poor

Kompas/Totok Wijayanto

People carrying out their activities in front of a semi-permanent makeshift house in the densely-populated area of Muara Angke, Penjaringan, North Jakarta, Monday (17/7/2017). From the poverty data released by the Central Statistics Agency, in the September 2016-March 2017 period, the number of poor people in the cities has increased by 188,190 people from the 10.49 million people in September 2016 to 10.67 million people in March 2017.

Poverty remains a problem in big cities like Jakarta. Addressing the main causes of poverty by providing employment opportunities and access to business capital is considered to be the key in alleviating the urban poverty.The government’s efforts in handling the urban poor has not been optimal as shown in the result of a survey conducted by Kompas on June 15-17. As many as 69 percent of respondents being surveyed said that the government’s efforts in overcoming poverty in urban areas were not yet optimal.

Based on data from Statistics Indonesia (BPS), in September 2020 the number of the urban poor in Indonesia reached 12.04 million people. This number was higher than 11.16 million people in March 2020 and 9.86 million people in September 2019.

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The Covid-19 pandemic, which has severely disrupted the country’s economy, has not only contributed to an increase in the number of poor people in cities but also its proportion in the national poverty rate. In 2008, as many as 36.5 percent of the country’s total poor population consisted of urban residents. The percentage further increased to 39.8 percent in 2019.

As many as 51.7 percent of the respondents in the survey stated that the main cause of poverty in cities was the lack of job opportunities. The lack of access to business capital is also considered to be the cause of poverty in urban areas.

The urban poor are also vulnerable to disasters, such as floods or fires especially those living in densely populated areas.

Without a job or a business activity, the urban poor cannot adequately meet their daily needs. Many of the urban poor are also unable to access education, health, and other available public facilities. The quality of their housings is also really bad. Living in a dense settlement in slum areas and without access to clean water and proper sanitation is also the face of poverty in urban areas such as Jakarta. The urban poor are also vulnerable to disasters, such as floods or fires especially those living in densely populated areas.

Many of them also have to live on riverbanks, under bridges, and even carts.

Lack of job opportunities

This condition really contrasts with the picture of the economic "candy" that lured migrants from regions to try their luck in the capital city. The attractiveness of big cities like Jakarta with its development and economic activities is considered to promise better life opportunities. Therefore, every year, people flock to cities in hopes of finding better jobs.

KOMPAS/RADITYA HELABUMI

A number of office employees on Jalan Sudirman, Jakarta, left the office during lunch break on Tuesday (28/7/2020). Although there are provisions for implementing health protocols with restrictions on the number of employees and setting working hours, Covid-19 transmission still occurs in many office environments.

In 2019 alone, the number of migrants who tried their luck in Jakarta following Idul Fitri holidays was estimated at about 71,000 people. The number did not include those who came to the capital before Idul Fitri.

However, getting a job in the city is not easy. This can be seen from the high open unemployment rate in the city. In 2019, the open unemployment rate in cities reached 6.29 percent, while in villages it was only 3.92 percent

The high unemployment rate in the cities has been recorded in the Sakernas national employment survey conducted since 1976. During 1976-1979 period, the open unemployment rate in the cities reached 6.4 percent. The percentage did not change much in the 2016-2019 period, which was recorded at 6.53 percent.

This shows that finding a job has become a latent urban problem for a long time. Employment opportunities in cities that are available to migrants are mostly in the non-formal sector, such as household assistants, caregivers, and traders. In the formal sector, the migrants mostly work in blue-collar jobs, such as factory workers and shop cashiers.

Kompas/Totok Wijayanto

Crowded area in Muara Angke, Penjaringan, Jakarta, on Saturday (3/2). Based on Central Statistics Agency data, from the total 26.58 million poor people in Indonesia, about 10.27 million lived in urban areas.

With such jobs, their economic resilience cannot be guaranteed, because these informal and blue-collar workers are generally low-paid, without a sufficient social protection.

Such a condition can be seen during the Covid-19. When the economy crashed due to the pandemic, employment was also affected. According to 62.4 percent of the respondents, the impact of the pandemic further worsened the poverty gap.

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The impact of the pandemic is generally felt in the cities. As of August 2020, more than 450,000 formal workers in Jakarta had lost their jobs. This contributed to an increase in the open unemployment rate in Jakarta by 4.4 percent to 572,780 people (10.95 percent) compared to August 2019.

With such situation, the public agrees that providing jobs and giving access to business capital is the key in alleviating the living condition of the urban poor.

Kompas/Totok Wijayanto

Dwellers of semi-permanent buildings along the railway tracks in Kampung Bandan area, North Jakart, with the background of multi-storied residential buildings on Tuesday (23/5/2000). The poverty rate per September 2016 reached 27.76 million people, or 10.70 percent of the total population. This year, the government targets the poverty will decline to 10.5 percent. To accelerate reduction in the economic inequality pace, the government will raise and empower 40 percent of the poor population.

The urban poor should also deserve to receive a social assistance such as the pre-employment card training program for workers who lost their jobs, the financial assistance to 12.8 million micro-enterprises, and subsidies for workers with salaries below Rp 5 million. (KOMPAS R&D)

(This article was translated by Hendarsyah Tarmizi).