ID :
47635
Wed, 02/25/2009 - 23:15
Auther :

FISCAL STIMULUS TO ABSORB THREE MILLION WORKERS

Jakarta, Feb 25 (ANTARA) - The government estimates that up to three million new workers will be absorbed this year following the approval of Rp73.3 trillion worth of fiscal stimulus by the parliament.

"It is expected at least three million new workers will be absorbed this year in the midst of ongoing global economic crisis," State Minister for National Development Planning, Paskah Suzetta, said here on Wednesday.

He said the ratio of workers to growth was still 430 to 450 new workers for one percent growth.

The ratio came as a result of increasing fiscal stimulus spending on infrastructure to Rp12.2 trillion out of total Rp73.3 trillion stimulus, he said.

He said according to the fiscal stimulus committee the stimulus funds would be allocated to 10 programs namely public works projects (Rp5.57 trillion), transportation sector (Rp2.24 trillion) and energy projects (Rp1.27 trillion).

He said public housing development would receive Rp400 billion, while special housing projects such as for fishermen would get Rp300 billion and projects of rehabilitation of agricultural infrastructure and irrigation would get Rp35 billion.

He said marketplace infrastructure projects would receive Rp590 billion, development and rehabilitation of vocational training centers Rp300 billion, additional subsidy for generic medicines and clean water Rp480 billion and additional subsidy for national community empowerment program Rp500 billion.

Paskah said the new employment was expected to be able to reduce the country's rate of unemployement to below eight percent.

If it is achieved, he said, it is expected the rate of poverty will drop 12 to 13 percent in 2009 from 15 percent the year before.

The agency has so far made three scenarios with regard to unemployment reduction according to economic growth assumptions.

The first scenario is if economy grows 4.5 percent employment is projected to grow 1.53 percent with the rate of unemployment reaching 8.6 percent or 9.82 million and number of laid-off workers at 200,000.

The second scenario is if economy grows 5 percent employment is projected to grow 1.87 percent with unemployment rate standing at 8.3 percent or 9.46 million and laid-off workers at 150,000.

The third scenario is if the economy grows 5.5 percent, employment will grow 2.20 percent with the unemployment rat at 7.9 percent or 9,09 million and laid-off workers at 100,000.

X