CEDS UNPAD

Trends and Constraints Associated with Labor Faced by Non-Farm Enterprises

This paper examines trends in non-farm employment and associated labor market constraints that have hindered the growth of non-farm employment (NFE) since the economic crisis in 1997-98. We observed, among others, apparent negative correlation between employment growth in agriculture and NFE, the high rate of urban employment growth, which was more than double the rate in rural areas, and the slow growth of formal sector employment – in both rural and urban areas and in farm and in non-farm sectors. Some policy implications are discussed.

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Center for Economics and Development Studies is a research center under the Department of Economics, Padjadjaran University, Indonesia. A leading research institute in Indonesia in the area of economics and development studies.
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