Latest news with #jobgrowth
CNA
4 days ago
- Business
- CNA
Commentary: Indonesia's jobs boom is a story of quantity, not quality
YOGYAKARTA: Indonesia is creating jobs at an unprecedented rate. In 2024 alone, the country added 4.8 million new jobs, pushing the unemployment rate below 5 per cent as gross domestic product growth rebounded to 5 per cent. While this appears groundbreaking on paper, national sentiment and statistics tell a different story. Workers are anxious, households feel stuck, and young graduates are scrambling for jobs to match their qualifications. Despite consistent job growth, social mobility remains difficult, with the number of Indonesians in the middle class falling since 2018. The core problem is not employment itself, but the nature of employment. According to Indonesia's National Labour Force Survey, the country created around 18 million jobs between 2018 and 2024. But more than 80 per cent were in household enterprises, while just 2.6 million jobs came from corporations and large factories, with fewer than a million jobs created in government-related roles. Household enterprises like street vendors, home-based workers and family-run shops may offer flexibility, but they are deeply informal and poorly paid. In 2023, nearly 59 per cent of Indonesia's workers were employed informally without insurance and earning below the minimum wage. In most cases, employees in household enterprises face a persistent wage penalty. In their first year, they earn on average 9.6 per cent less than government employees and 57.6 per cent less than corporate employees. With an average starting wage of just 1.6 million rupiah (US$96.50) per month, these jobs fall short of what it takes to join the middle class. UNDEREMPLOYMENT CRISIS This divide is pronounced across sectors. Sectors with the lowest wages and job quality such as agriculture and food services led job creation, with agriculture alone adding over 4.2 million jobs. But sectors that offer stable, better-paying work like finance, health and public administration added far fewer jobs. Most new manufacturing jobs are found in micro-scale, low-tech operations with low product complexity like food and beverage processing. Real wage data also reveals a troubling trend – adjusted for inflation, real wages have not grown since 2018. At the same time, between 2018 and 2024, the average number of hours worked fell across almost every sector, from agriculture to finance. This rise in low-hour employment has driven a surge in underemployment – around 30 per cent of Indonesia's workforce work under 35 hours per week. Although millions of Indonesians are technically employed, they are often stuck in jobs without enough hours or sufficient income to sustain a good life. This quiet epidemic of underutilisation erodes productivity and strains household budgets, pushing many workers into a loop of part-time labour and full-time insecurity. Indonesia's underemployment crisis is even more concerning when considering worker aspirations. In 2024, nearly 16 million Indonesian workers reported wanting to work more hours, an increase of almost 80 per cent from 2018. Over 83 per cent of these underemployed workers were concentrated in household enterprises. The institutions most capable of offering stable, full-time employment are shrinking, while the informal sector balloons with workers who want but cannot find enough hours. POLICIES FOR QUALITY EMPLOYMENT Indonesia must reorient its policy towards quality employment, including by incentivising employers to hire formally and pay fairly. Indonesia can learn from Chile's Subsidio al Empleo Joven (Youth Employment Subsidy), which offers wage subsidies to enterprises hiring vulnerable young workers, while linking social security benefits and access to credit to formal employment status. OECD evaluations show that this program has raised the probability of formal employment by 3 per cent and led to higher earnings for beneficiaries. Adopting similar targeted incentives can encourage more businesses to provide decent and secure employment. Improving job quality is not solely the responsibility of the government. The Central Bank also has a role to play by recognising the economic slack created by underemployment. Indonesia should rely on a comprehensive dashboard of labour market indicators to set monetary policy, rather than a single headline unemployment figure. An economy may boast record-low unemployment and strong job creation, yet persistent underemployment or weak labour force participation signals that substantial slack remains beneath the surface. In these cases, central banks may be wise to hold back from aggressive tightening to avoid stifling a still-fragile economic recovery. By embracing broader labour measures, monetary and fiscal policy can be calibrated more precisely, uncovering hidden slack or overheating pressures that the official employment growth rate alone fails to reveal. Indonesia also needs to strike a bold national conversation on job quality standards, while employers must provide a decent minimum wage, stronger job security, increased social protections and self-development opportunities. Good jobs are not luxuries, but preconditions for a healthy and inclusive economy. Indonesia's economic engine continues to grow. But if the jobs it produces are low-wage, informal and dead-end, the country risks building a future where work does not deliver dignity. Indonesia's economy will not be measured by how fast it grows, but by how many people rise with it.
Yahoo
6 days ago
- Business
- Yahoo
Cintas forecasts upbeat annual revenue on resilient demand for uniforms, safety gear
(Reuters) -Cintas on Thursday forecast its annual revenue above Wall Street expectations, betting on resilient demand for its uniform rentals and fire safety supplies, even as uncertainties loomed over the retail environment in the U.S. A rebound in the country's job growth boosted demand for the company's rental business as well as services such as facility cleaning and first-aid training. Its cost-saving and efficiency-boosting initiatives also aided its profit margin. Moderation in price hikes, bundled services and lower-priced products helped Cintas retain customers when threats of President Donald Trump's tariff policies cast a gloom over consumer spending. Analysts expect that the return of bonus depreciation via the "Big, Beautiful Bill" could benefit the company as it may accelerate bulk orders from firms. Bonus depreciation is a tax incentive that allows businesses to deduct a large percentage of the price of business assets rather than depreciating them over time. The company expects its fiscal 2026 total revenue to be in the range of $11 billion to $11.15 billion, largely above analysts' average estimates of $11.04 billion, according to data compiled by LSEG. Cintas projected full-year earnings of $4.71 to $4.85 per share, compared with that of $4.40 in fiscal year 2025. Analysts, meanwhile, expect annual profit of $4.84 per share. The company's fourth-quarter revenue rose 8% to $2.67 billion, compared with estimates of $2.63 billion. It earned $1.09 per share in the three months ended May 31, slightly above the estimate of $1.07. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Cintas forecasts upbeat annual revenue on resilient demand for uniforms, safety gear
(Reuters) -Cintas on Thursday forecast its annual revenue above Wall Street expectations, betting on resilient demand for its uniform rentals and fire safety supplies, even as uncertainties loomed over the retail environment in the U.S. A rebound in the country's job growth boosted demand for the company's rental business as well as services such as facility cleaning and first-aid training. Its cost-saving and efficiency-boosting initiatives also aided its profit margin. Moderation in price hikes, bundled services and lower-priced products helped Cintas retain customers when threats of President Donald Trump's tariff policies cast a gloom over consumer spending. Analysts expect that the return of bonus depreciation via the "Big, Beautiful Bill" could benefit the company as it may accelerate bulk orders from firms. Bonus depreciation is a tax incentive that allows businesses to deduct a large percentage of the price of business assets rather than depreciating them over time. The company expects its fiscal 2026 total revenue to be in the range of $11 billion to $11.15 billion, largely above analysts' average estimates of $11.04 billion, according to data compiled by LSEG. Cintas projected full-year earnings of $4.71 to $4.85 per share, compared with that of $4.40 in fiscal year 2025. Analysts, meanwhile, expect annual profit of $4.84 per share. The company's fourth-quarter revenue rose 8% to $2.67 billion, compared with estimates of $2.63 billion. It earned $1.09 per share in the three months ended May 31, slightly above the estimate of $1.07. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CBC
12-07-2025
- Business
- CBC
Alberta led nation in employment gains with 30,000 net job growth in June: Statistics Canada
Social Sharing Statistics Canada's newly-released J une 2025 Labour Force Survey indicates employment numbers grew by 83,000 in June, with Alberta leading that increase. The province saw a net gain of 30,000 new jobs, with 51,300 full-time jobs created and 21,300 part-time jobs lost. Those numbers represent a 1.2 per cent increase in Alberta's employment rate, with 2,594,100 people currently working. The province's unemployment rate went down 0.6 per cent, bringing it to 6.8 per cent, or 189,000 for June. 'Such a big rebound' Alberta Central chief economist Charles St-Arnaud said parts of the report were "surprising," with the growth numbers exceeding his expectations. "We were not expecting such a big rebound in employment," he said. "83,000 nationally, 30,000 in Alberta, that's really big." Alberta's first-place employment increase was followed by Quebec's 23,000 net job gain and Ontario with 21,000. With 0.4 per cent growth across Canada, June saw the first nationwide employment increase since January. The 6.8 per cent unemployment rate sits just below the national rate of 6.9 per cent. Services-producing sector leads Alberta job growth June saw employment numbers rise in 10 of 16 industries, according to the data. Alberta's service sector had the highest overall employment growth in June, going up by 30,600 jobs, or 1.6 per cent from May 2025. Within that sector, the top-growing industries were finance, insurance, real estate, rental and leasing (8,300 new jobs), health care and social assistance (6,700) and business, building and other support services (5,500). The goods-producing sector shrank by 0.1 per cent in June, with 600 jobs lost across the board since May. Agriculture employment went down by 6.2 per cent, with 2,600 jobs lost, while manufacturing (4.7 per cent, 6,800 new jobs) and natural resources (2.8 per cent, 4,000 new jobs) went up significantly. Job growth reflects population growth Kate Koplovich, director of strategy at Calgary Economic Development, said the numbers reflect the province's growth, but added she will be "waiting to see if this is a short-term gain, or if this really shows long-term resilience." In a statement, Minister of Jobs, Economy, Trade and Immigration Joseph Schow said the data is "welcome news" for the province. He said it's "proof that our plan to grow Alberta's economy is working as we remain strong, stable and resilient." He pointed to the drop in youth unemployment — 17.2 to 16.4 per cent — as a sign that "more young people who choose Alberta are finding meaningful jobs to start building their future."
The National
10-07-2025
- Business
- The National
These are the roles driving UAE job growth
Job growth in the UAE in the second quarter outpaced Saudi Arabia, driven by strong demand in real estate, financial services and technology sectors, the introduction of a digital work permit system and high employer confidence, a report by recruitment company Cooper Fitch has shown. Hiring activity in the Emirates accelerated by 4 per cent for the three months to the end of June, while job growth in the kingdom rose by 2 per cent, according to Cooper Fitch's Gulf Employment Index report. Saudi Arabia recorded steady hiring across finance, tourism and infrastructure, although momentum slowed slightly as organisations reassessed budgets and project timelines, the research found. 'The UAE had a significant import of high-net-worth individuals, millionaires and billionaires. We're also seeing a lot of SME activity happening in the jobs market here. A lot of sectors in the UAE are growing well simultaneously,' Trefor Murphy, founder and chief executive of Cooper Fitch, told The National. 'Legal in-house, public sector, infrastructure [roads and rail], education, tourism, supply chain, sales and marketing are other sectors in the UAE recording robust hiring activity. 'Saudi Arabia is repositioning themselves and working on projects that have specific timelines attached to them, such as the AFC Asian Cup and Expo 2030, among others. They've a huge amount of infrastructure they need to do to be prepared for those big global events.' There is also a shift from hiring of 'strategic, visionary type' roles to 'execution roles' in the UAE, he added. The UAE is facing a surplus of skilled professionals in many roles, particularly at middle and senior management levels, according to recruitment experts. The country's attractive lifestyle and tax-free salaries continue to draw skilled professionals from around the world. The Emirates' population is booming and job seekers in many professions now far outstrip the number of available roles, HR professionals said. People are coming in and taking jobs for very low salaries just to get their foot in the door, they added. Employers are placing greater emphasis on UAE market experience and cultural fit, as well as soft skills, given the abundance of technically qualified candidates. Overall hiring in the GCC rose by 1 per cent in the second quarter, Cooper Fitch said. Oman registered a 2 per cent growth in hiring activity driven by expansion in the renewables, manufacturing and industrial development sectors. Employment creation in Bahrain increased by 1 per cent, led by FinTech and tourism. However, a smaller talent pool and limited project scale continued to temper broader hiring momentum, the consultancy reported. Qatar and Kuwait both saw reduced hiring in the second quarter, with contractions of 3 per cent and 4 per cent, respectively. 'In Qatar, employers reassessed short-term hiring plans due to slower momentum in energy and infrastructure projects, particularly around the North Field expansion. However, long-term hiring intent remaining intact,' the report said. 'Kuwait's hiring activity remained subdued, with many employers deferring decisions amid ongoing policy discussions and the absence of new project approvals.' Watch: Why expat salary packages are not what they used to be With both Eid Al Fitr and Eid Al Adha falling in the second quarter, along with the early summer slowdown, many organisations delayed decision-making, particularly in markets with large public sectors or family-owned businesses, according to Cooper Fitch. Countries advancing project delivery saw hiring growth, while others slowed amid delays in spending, the consultancy said. Roles in demand in Gulf Senior finance roles notched the highest growth in the GCC this quarter, up by 8 per cent, driven by the formation of new joint ventures and increased regulatory oversight. Internal audit and compliance hiring surged, particularly in Saudi Arabia and the UAE, Cooper Fitch research found. Broader finance recruitment also rose 4 per cent, fuelled by a 'sustained appetite' for financial planning and analysis specialists and treasury professionals. GCC financial hubs, particularly the Dubai International Finance Centre and ADGM, experienced a 2 per cent increase in investment-linked hiring, as 'global fund inflows intensified the competition for top-tier compliance, risk and regulatory professionals', according to Cooper Fitch. In banking, hiring activity grew by 3 per cent, led by demand for professionals who straddle governance, automation and data. Strategy hiring, aligning recruitment with long-term business goals, remained flat as companies increasingly favoured interim consultants or niche specialists over traditional firms, the consultancy said. We're seeing a lot of SME activity happening in the UAE job market. A lot of sectors are growing well simultaneously Trefor Murphy, founder and chief executive, Cooper Fitch 'Leadership hiring in the chief executive practice increased by 4 per cent, driven by mandates related to restructuring, digital redesign and new market expansion,' according to Cooper Fitch. ' Public sector hiring grew 5 per cent underpinned by sustained investment in digitalisation and citizen services. HR hiring rose by 4 per cent in the GCC, largely fuelled by nationalisation mandates and large-scale workforce mobilisation across utilities, energy and industrial sectors.' Sales and marketing hiring grew by 6 per cent, driven by strong activity in real estate, manufacturing and consumer markets. Real estate hiring increased by 1 per cent, supported by key project delivery milestones and a rise in developer activity, particularly in Abu Dhabi, the report said. Legal hiring was mixed: in-house counsel demand rose by 7 per cent, especially within investment and real estate firms, while private practice hiring contracted by 3 per cent. Hiring in manufacturing increased by 2 per cent, driven by new plant developments and upgrades across steel, power, packaging and chemicals. Supply chain hiring rose 3 per cent. Roles linked to automation, vendor management and logistics transformation gained traction, the report found. In technology, software jobs contracted by 2 per cent, while cloud hiring declined by 3 per cent and cybersecurity hiring rose by 3 per cent. Digital, data and AI hiring increased by 4 per cent in the GCC.
