Labour shortage across key industries predicted in Indonesia

Photo by Tom Fisk

According to research by McKinsey, a major commercial crisis is looming as the world faces a talent deficit of 85.2 million workers. This crisis is already here in Indonesia, with skills shortages appearing across several major industries, including manufacturing, finance, and technology.

At current rates, the labour deficit will see Indonesia lose out on US$442.62bn, forfeiting economic growth by up to 19%.

Contributing to this labour shortage is a looming skills gap. Over the next year, almost 17.2 million Indonesians will require digital competency training to keep up with technological progress.

Yet, according to a recent study by Amazon Web Services, less than 36% of employed adults believe they are not being trained enough to help them prepare for the future demands of the workplace.

According to data obtained by KUPU’s company research, some of the sectors most at risk of this skills shortage are the hospitality and retail sectors.

Andry The, KUPU Chief Information Officer said, “Indonesia has experienced significant growth over the last decade. Yet, more needs to be done in the workplace to ensure this growth continues. The Government’s ambitious Indonesia 4.0 initiative shows a visionary approach toward securing Indonesia’s global position as a young developing nation with a young workforce.

“However, more investment from the private sector into skills training will help people prepare for the future of work and close the digital skills gap.”