Labour Underutilization: Concept and Measurement (3/3)

Section 3: Some Lessons from the 2012 Sakernas

As discussed above, the Sakernas (until 2015) is unable to provide data on “potential labour force” (PLF), the second component of the labour underutilized” (LU). The reason for this is that the questionnaire of the survey does not contain the question of “the availability of work”. However, part of PLF (using ICLS-19 standard) has been included already in the unemployment rate; namely, “discouraged job seeker” (DJS).

The estimated population of DJS, according to Sakernas 2012, is around 2.26 million. This is a big number as reflected in the DRS-unemployment ratio which is about 31:100. The table also shows some numbers that can be used to estimate population or ratios of some components of Working-age Population (WAP) as below:

  • Unemployment (U) = 7.2 million, if DJS is considered as part of U (as official figure); OR 5.0 million, if DJS if DJS is considered as part of “Outside LF)” (as suggested by ICLS-19);
  • Unemployment rate= 6.1% or 4.3%; depending on how to treat DJS;
  • Time-related Underemployment (TRU) = 11.5 million
  • Labour Underemployment (LU) >= 18.8 million, if LU>=U+TRU, and
  • LU rate >= 15.9%, if LU rate = (LU/Labour Force) *100.

[Beck to Section 1]

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